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Software Asset Management, the solution for your business!
Posted on November 27 2020
Reading time: 6 minutes
For a business or organization, the expenses associated with software license purchases make for about 20% of the total spending budget in a year. It’s important to constantly monitor the proper use of these active softwares to ensure that every dollar invested is used in the right way.
Software Asset Management definition :
Software Asset Management (SAM) is the process that enables software to be optimized, managed, and protected throughout its life cycle in a business or organization.
What is the software life cycle?
The life cycle of software is generally composed of 5 phases:
Planning: Realizing the need to purchase software and monitoring the market to compare costs and establish a budget.
Acquisition: Purchase of software and hardware licenses.
Commissioning: Deployment of software to users. It’s important to read the license agreement and installation guide.
Maintenance of the software: Monitoring of licenses, updates, maintenance and all other elements necessary to guarantee the operation of the software for as long as possible.
End-of-life: Might be related to several reasons, for example, when a software no longer meets the needs of the company and it needs to be replaced and the license contract needs to be broken.
The impacts of bad asset management
Not knowing how to manage assets brings its share of risks for a business. It’s important to read the legal contract of your licenses. Without knowing it, you may use software fraudulently, such as in the following ways:
Forgetting to renew the license
Usage that isn’t in compliance
Multiple-use of a user-limited license
In the event of an audit, this misuse may expose you to a fine, which would result in economic losses, in addition to tarnishing the image of your company. Also, if you do not track your assets, you may invest in licenses that are underutilized by your employees.
To avoid fines and ensure the proper management of your computer equipment, here are some recommendations:
Follow the evolution of your IT system thanks to the use of inventory control software
Educate your employees about the risks of using non-compliant software
Be proactive and conduct annual monitoring of vulnerable editors
SAM software will allow you to follow up in real-time. Here are three reasons for using asset management software, which will not make you hesitate any longer.
1. To ensure the legal rules of use of your software
Using software in a non-compliant manner can be extremely expensive for a business. You can use SAM software to display user guides and legal compliance rules, so your users know exactly what a license does or doesn’t do.
It will also allow you to ensure that your employees are using the software optimally.
2. To maintain the license life cycle
With asset management software, you will keep track of your actions from the moment you acquire the license, until the end of its life. You can quickly spot them and see exactly who is using them.
By making sure you update your software and replace outdated hardware at the right time, you will increase its life.
3. To save time and money
The history of the actions taken with your software will certainly allow you to better analyze your next purchases. When there is bad asset management, you may lose track of which licenses meet your needs or not.
You’ll be able to adapt your future orders according to the software that is most requested by your employees and renew if necessary. You maximize your investment by avoiding spending money on software that may be unnecessary.
By knowing exactly when certain licenses will be updated or renewed, you can better plan your budget. Using SAM software will also allow you to see the total cost per year attributed to the purchase and renewal of your licenses.
What to do with your license when an employee quits?
First of all, make sure you read the compliance rules in connection with the transfer of licenses of your software, so as not to risk a fine. It’s also important to read the user guides on this topic so as not to risk reducing the life of the software by performing a wrong maneuver.
If your software is under a subscription, you simply have to follow the installation procedures that are provided initially and do the installation on another computer. Verify that the maximum number of license installations per computer is not reached.
If your software is not under a subscription, you may need to use a utility to transfer installation information from one computer to another.
Simply writing down the date of purchase of your licenses on a piece of paper is not enough to help you manage your software properly.
Protect your business investments, increase your management performance and limit your time and material losses. Offer you a simple way of having access to important data in the system when you need it.