- May 28, 2020
- Olaf Diehl
Immediate Wins for Long-Term Stability: SAM in Uncertain Times
As we all know by now, organizations around the world are moving activities online and shifting to home office in order to keep their employees and customers safe. But these changes rely on more than ‘good will’ on the part of management and employees – being this adaptable requires flexibilities and efficiencies in software license management that can help protect an organization’s software investment and control spending in an uncertain future.
Your organization may be making personnel changes that will influence your software license management environment. Whether you’re shifting resources to more business-critical tasks, or simply asking workers to work remotely, you may need to activate or deactivate software licenses to meet those business needs.
Deactivating and reassigning unused and underused software licenses can help you avoid new costs, keeping money in your budget for other critical activities. This is called software re-harvesting.
In the current economy, companies around the world are looking to identify immediate savings opportunities. Automated software re-harvesting lets you monitor unused or underused software installations and re-allocate or remove those instances across your organization – improving your ROI and saving your company significant money, now.
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The way we work is changing rapidly and in unexpected ways. Zoom, the digital communications platform, exploded in March, going from an average of 10 million users a day to 200 million.
Other tools such as virtual desktops and VPNs for secure connectivity have also become essential where the demand was once low. Depending on the type of service and the length of the subscription period, costs for these services can vary significantly and require different approaches to cloud cost management and monitoring.
Your organization has a choice between dynamic monitoring and strategic planning. With dynamic monitoring, keep track of usage and costs to make changes to your subscriptions as you need them Use this option when your subscription period is short. Strategic planning is necessary when the subscription period is longer.
If you already have a central overview of your licensing environment, then you’re in good shape. If you don’t, you’ll need to get one, so you can take advantage of the built-in flexibilities.
Why software license management drives savings
In the short-term, your savings is delivered from a combination of software license management strategies that streamline your subscription landscape:
- Adjusting plans to get rid of unused services
- Cancelling unused accounts
- Re-harvesting existing accounts and transferring them to users that need them
Combine these short-term actions with a better understanding of your actual consumption, and you’ll be able to renegotiate your software licensing deals to save an average of 10 – 30%. Such significant savings could make you more competitive and more agile. You’ll have more money to invest into your business activities, so you can recover more quickly.
Don’t forget software license compliance
If our experience from the crash in 2008 is any indicator, major vendors will turn to software audits to recoup some of their lost profits, so don’t forget about software license compliance risks.
Many organizations continue to assume that software license compliance isn’t a concern in the cloud. That’s wrong. Even though cloud software resources are hosted on the vendor’s infrastructure, the consumer is still required to ensure that they are using the resources according to their software contracts and term & conditions.
Luckily, whether you’re in the cloud, on-premises, or working from a mobile device, the fundamentals of license management remain the same:
- Know what your licenses say
- Know what you’re using
- Ensure your licenses cover your usage
Starting and doing software license management is a quick win, especially if you’re using a lot of subscription-based or SaaS cloud solutions. Ensure that your licenses meet your business needs, and keep those licenses trim and cost-effective. It’s the one investment you can make now that lowers your operating costs and enables you to get a stronger ROI from your software investment.