Maximize your profit by minimizing your software spend
Why invest money and time in managing your software licenses? Because it lowers risk, increases efficiency, and saves your company money!
SAM programs give businesses a competitive edge. They free up resources and save costs that are re-invested in strategic business areas. And when that happens, SAM Managers have the ability to shape the future of their companies.
Are you ready to estimate your savings through SAM? Make it easy and grab the calculator!
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Where to look for SAM Savings
Implementing a Software Asset Management technology often achieves ROI in just 6 to 12 months. There are hidden cost savings throughout your software estate, and a SAM technology will get them for you:
- Get more out of what you already have. Transparency gives procurement employees the power to understand the value of a software contract and use it.
- Ditch the spreadsheets. Automation gives you unimagined access to your software estate, saving you time while doing more, and putting important information at your fingertips in seconds.
- Know what you have — and what you need.Achieve compliance while avoiding costly and unnecessary license purchases by knowing what’s already in your inventory, what’s in use, and what licenses you can free up.
Use your own numbers to see how you benefit from Software Asset Management by looking at the most common areas companies save.
You can save at any stage in the license management process:
purchasing, in-use, and contract (re)negotiation
Know what you
use and need
Rethink costly all-you-can-eat enterprise agreements by knowing exactly what you
have and need.
Reharvest: Get more without buying a thing
Cover more software requests with the same amount of licenses—in less time.
Spend less & lower maintenance costs
Right-size your maintenance agreements to your actual license usage, and make your
licenses work for you.
7 Ways to Save with Software Asset Management
Licenses are worth money. The value of entitlements can be millions of dollars—but you have to use them.
One contract to rule them all. Consolidate your contracts to make them manageable, spend less, and to ensure compliance.
Right-size your way to savings. Get the right fit for your environment and pay only for the maintenance you need.
Get more mileage out of your licenses. You probably already have what you need. Re-harvest to save money.
See into the future. Simulate your future license demand and find the best licenses for your changing environment.
Master the data. Use your own data to take the surprise out of reviews and true-ups, and to defend against audits.
Get time back to do more.
Let a SAM tool cut your audit response time and maximize your personnel resources.
1. Use the full value of every license
Licenses are worth money
It’s important to remember that although licenses contain rules, they also grant valuable rights. These are called entitlements or Product Use Rights (PUR), and they permit the business to use the software in certain ways that would otherwise require an additional license.
Save Immediately with Product Use Rights
Spreadsheets can’t manage PURs or apply them. This is the job of a SAM tool: know the product use rights of every license your company owns and apply them—automatically. The value of the entitlements can represent millions of dollars.
2. Contract Management is the power to spend less
Walk away from expensive “all-you-can-eat” contracts
Many companies opt for enterprise agreements because they are easy to manage compliance. But they are also expensive, and they may be too big for your actual license demand. If you know exactly how much you’re using and how much you need, then you can choose more cost-effective licensing agreements.
One contract saves resources, time, and costs
A SAM tool saves all your contracts securely, but also make them accessible to the people who need to know about them—like procurement managers. So you can consolidate multiple contracts into one. That means:
- A higher discount level
- Less contracts to manage
- It’s easier to ensure you’re compliant and within budget
- Greater visibility and the information you need to negotiate better contracts
3. Stop the Maintenance Cost Madness
Lower maintenance costs
By right-sizing your maintenance agreement, that is, making it fit your actual license demand, you stop paying annual fees on licenses you don’t use. These annual savings add up fast, especially since maintenance tends to increase at regular intervals.
Stop paying for maintenance you don’t need:
- Some companies still pay maintenance fees on expired contracts. Usually this happens because a payment schedule was set up and never canceled due to lack of transparency.
- A SAM tool shows you what software versions you have in use. If you consistently pass on new versions, paying maintenance fees is a waste. A look at the potential savings earned by canceling the maintenance agreement vs. reinstatement fees is often worth the effort.
4. Maximize your resources
Reharvest licenses: Spend less. Get more.
Licenses are a renewable resource. In fact, approximately 50% of all requests for client software can be covered by reusing existing licenses. By monitoring usage, deactivating unused licenses, and reallocating them to those who need them, you can save money and remain compliant. Without lifting a finger either: a SAM tool will automate this process for you!
Avoid unnecessary spending
See whether a license is available before purchasing a new one. If you have unused licenses in your inventory, you can tie that into your software request management process—and even create shopping lists for your procurement team.
How much will you save?
5. Simulation: Plan ahead
Afraid compliance will cost you? A SAM tool tells another story.
Use the power of comparison
Often the difference between compliance and cost is just a different license metric. Find the lowest cost licenses that are already in your inventory.
Want to see into your licensing future? You need a SAM tool for that.
The power of planning ahead
By simulating your future architecture and different license models, you can find the most cost-effective licenses for your changing business needs. Test drive enterprise agreements and cloud subscriptions in your SAM tool before you enter them. Better day-to-day decisions about license provisioning lead to bigger long-term savings.
6. Take control of your audit
Use your own data
Control the audit by using your own data. Review and clean the data before you pass it along. Don’t let vendors see anything they don’t need to see. Your best audit defense is offense with your own data.
Track your agreements
In contract management, there is no such thing as too much knowledge. If you know what you’re entitled to, then you can strengthen your position in an audit, true-up or annual review.
7. Automate for cost-efficiency
Ensure that your audit has the best possible outcome with minimal disruption to daily business. When your SAM team has the most current and accurate information at the ready, that means less time to make the audit go away. No more sifting through outdated documents and email threads.
A sample calculation makes the cost-efficiency clear:
- For every license review letter your company receives, it takes on average 20 days to prepare the data and respond to the letter without a SAM tool.
- 1 letter = 20 work days (of 260 working days per year)
- If 1 full-time employee earns $90,000 per year, then you spend $6,923 in salary costs to process and respond to each license review letter.
- An invasive audit will require a minimum of 3 full-time employees to manage for at least 6 months or $135,000 in personnel expenses alone.
- A SAM tool can cut your preparation time in half.