Jun 22, 2017

Why IT Investment Alone Isn’t Enough

Research in 737 European financial institutions indicates that those investing the most in hardware and software had the poorest profitability and efficiency. Additional research by Professor Ashraf Labib and Qui Mai at the University of Portsmouth Business School shows certain public sector organisations spend 30 times more managing software licenses than others who perform exactly the same functions.

Quite simply, many organisations spend considerable amounts on IT assets and perform worse than their competitors who spend far less. Why is this?

Transparency is key

Discussions with IT senior management reveal an interesting answer: they don’t know which parts of their IT are being used effectively, or what the impact of the use or non-usage is on the business.

Software Asset Management (SAM) technology such as Aspera SmartTrack provide a clear picture of which IT resources are driving key business processes. Equally effective, a good SAM platform will also inform which resources are a complete waste of money.

Once license management data delivers this information to management, the causes of inefficiency becomes clear. Only then can proactive decisions be made on what to do about it.

Lead with Software Asset Management

Last year Gartner recommended companies optimize their Software Asset Management and IT Asset Management (ITAM) capabilities as one of their “Top 10 Recommended IT Cost Optimization Ideas”. In their report, Gartner concluded that SAM is “one of the most overlooked areas of cost-savings opportunities.”

With a Software Asset Management program, organisations gain more than licence compliance and cost savings. Suddenly, companies start to see more effective results from their IT investments, while reducing compliance risk by increasing visibility into their software usage and IT assets.

IT Asset Management is central to improving the whole focus and performance of an organisation. By benchmarking IT asset usage against business process performance, companies can track costs to savings and efficiency improvements. In many cases, this has a direct impact on business results which increase sales or profit.

Research and real life show that Software Asset Management saves IT significant amounts of time and costs. Aspera customer, Austrian Federal Railways (ÖBB), recently detailed their success of establishing enterprise-wide SAM to facilitate transparency and efficiency.

Read the ÖBB SAM Success Story

Getting more from your IT investment

It’s time to unlock the silos and build transparent, working communication between teams. If you’d like to gain visibility of your IT usage efficiency – and start getting more out of your IT investment, please reach out to me directly!

This article was produced in association with Mr. Phil Hames, Director of The Business Software Centre (TBSC), which he founded in 2004. Since then, the company has pioneered new technologies for providing software as a service (SaaS) and software usage metering.

Over the past 10 years Phil has guided TBSC in the development of new technologies for making software available on a “pay for what you use” basis. TBSC has developed Rentsoft Meter for ensuring that software users can track usage of software and associated services by the minute. Phil believes that traditional licensing methods for software have worked against both customers and innovation in the software industry.

Phil has a BSc Honours Degree in Managerial Sciences from the University of Bradford. The early part of his career was spent in electronics manufacturing and international purchasing where he used quality improvement and statistical techniques to eliminate waste and improve efficiency.

Sign up for future blog posts

Topics: SAM Insights