Software Asset Benefits of SAM
Save money Good software asset management can help deter-
mining what software organizations do and don’t
need. It provides information of the amount of
licenses that is required to stay compliant. It can
help organizations taking advantage of volume
license discounts offered by many software pub-
lishers and determine how to deploy software
According to Gartner, “...the lack of effective IT more efficiently company-wide.
asset management programs limits the ability of Optimize changes in Software management can help organizations
CIO’s and CFO’s to address their priorities and infrastructure identifying its software requirements and avoid
objectives.” obsolete software. This enables faster, easier and
more cost effective changes into the infrastruc-
Forrester says they are not aware of any com- Minimize communica- In organizations where acquisition of technology
pany that could not save money by implement- tion and data transfer has gone unchecked, many different platforms
problems and versions may exist. Managing software can
ing an asset management system. They estimate help address and resolve these issues
savings in software licenses alone of at least 15 to
Justify investments in Software management can help organizations
20 percent, and in some cases up to 30 percent. technology identify what software investments have proven
Gartner states that “Companies that systemati- beneficial, while highlighting those areas that may
need upgrades or new programs.
cally manage the life cycle of their IT assets will
Minimize legal and Abuse of software licenses can result in financial
reduce the cost per asset by as much as 30 per- financial risks penalties and legal costs. Additionally, directors
cent during the first year, and between 5 percent can be individually liable, both in criminal and
and 10 percent annually during the next five civil proceedings, for any copyright infringement
that occurs within the organization.
years (0.8 probability).”
Manage corporate Faster and easier integration after merger, acqui-
changes sitions and sell-outs.
“Software Asset Management (SAM) has become an Purchasing advantages Better (re)negotiating positions and improved
imperative, not an option. Software assets are busi- software purchasing arrangements
ness assets. Without them directors expose their busi- Improve decision mak- More accurate information as basis when taking
ness and themselves to constraints and to legal and ing decisions on standards, policies and procedures
will be beneficial for the governing of software
financial risk” assets.
What is Software Asset Management? Who is/should be interested in SAM?
SAM means different things to different people but Following roles and functions are to be responsible/
for Zipper, Software Asset Management is more than interested in Software Asset Management:
license management. With SAM you change from being • IT Purchasing
uncontrolled and reactive to business driven and proac- • Quality
tive. SAM enables a business to gain control over the • CIO’s
physical, financial and contractual aspects of its soft- • Asset managers
ware assets throughout the asset’s life cycle. In general, • IT Managers
we state that SAM consists of three basic • Asset/product/service owners
The goal of the SAM tools is not to fully ISO standard for SAM
automate the entire process, but rather to Many organizations prefer to
find areas that need further investigation. Accurate and align to the ISO standard within
up-to-date SAM information, automatically updated the SAM area, ISO/ IEC 19770-1.
from the live infrastructure, together with the processes This is the first international standard for software asset
for control of its accuracy management. ISO/IEC 19770-1 can be adopted, partial-
ly or fully by organizations of all sizes. ISO/IEC 19770-1
establishes a baseline for an integrated set of processes
for SAM. It has been developed to enable an organiza-
Effective business processes wrapped
tion to prove that it is performing SAM to a standard
around the technology is needed to make the SAM ini-
sufficient to satisfy corporate requirements and ensure
tiative successful. All activities must be process driven
effective support for IT service management. Zipper
and refined through iterative improvements.
recommends using the ISO standard as a base when
defining an organization’s SAM framework. To be able
• Organization to work effectively with SAM it is important to know
If SAM processes are to prove successful, where you are today, where you want to be and finally
it is important that roles and responsibili- what action you should take, and when, to come there.
ties are clearly defined, agreed and that the
ownership scope for each of the processes is agreed.
Business case or Return of Investment Replacing the full version with a viewer would in this
In many organizations the management of software case reduce the need for full version licenses with 1857-
assets is uncontrolled and decentralized with few or no 1070=787, to a value of 4 070 000 SEK.
documented processes and procedures to follow. When (d) The cost for a viewer license is 570 SEK which in
starting to take control of the software assets the costs total entail an extra investment of 449 000 SEK.
can be reduced. Even if starting up in small scale the
cost reduction effect is immediate and the pay-back
period can be minimized.
It’s not unusual that 40-60 percent of the installed soft-
ware is rarely or never used. Even if not used they do
still require a license. When performing detailed inven-
tory it is possible to measure software usage and based
on that information take required action.
The examples below covers only three different titles of (a) Cost for license compliance 0 SEK
software out of thousands, used and/or installed simul- (b) Cost for being over licensed 8 100 000 SEK
taneously in organizations’ client infrastructure. The (c) Cost for incorrect software usage 4 070 000 SEK
potential of financial savings with SAM is extensive. (d) Viewer license cost -449 000 SEK
Potential cost reduction 11 721 000 SEK
Zipper has managed SAM projects with the objective of
saving tens of millions SEK every year.
Cost avoidance, example 3
Cost avoidance, example 1 In the example below an organization is planning to
(a) The cost per license in this example is 796 SEK upgrade from version 8.0 to 9.0 of a graphical map soft-
Without any action taken (uninstall of unused software) ware. The license cost per upgrade in the example below
this organization need to purchase 2751-1638=1113 new is 4 970 SEK and for new licenses 13 995 SEK .
licenses to a cost of 886 000 SEK, to be compliant. With (a) Since they are over licensed the cost for license com-
a proper SAM initiative the cost for license compliance pliance is 0 SEK.
is 0 SEK. (b) Based on usage this organization is over licensed
(b) Based on usage this organization is over licensed with 487-180=307 licenses, to a cost of 4 300 000 SEK.
with 1638-1364=274 licenses to a cost of 218 000 SEK. With proper policies and procedures (automatic unin-
With proper policies and procedures (automatic unin- stall of unused software) this cost could be avoided.
stall of unused software) this cost could be avoided. (c) Lacking a SAM initiative, this organization would
upgrade all their 487 licenses instead of only 180, which
would be the rationalized volume. The extra cost for this
would be 1 530 000 SEK.
(a) Cost for license compliance 886 000 SEK
(b) Cost for being over licensed 218 000 SEK
Potential cost reduction 1 104 000 SEK
(a) Cost for license compliance 0 SEK
Cost avoidance, example 2 (b) Cost for being over licensed 4 300 000 SEK
(c) Cost for lacking updated information 1 530 000 SEK
(a) The cost per license in this example is 5 170 SEK. Potential cost reduction 5 830 000 SEK
Since they are over licensed, the cost for license compli-
ance is 0 SEK.
(b) Based on usage this organization is over licensed
with 3 423-1 857=1 566 licenses, to a cost of 8 100 000
SEK. With proper policies and procedures (automatic
uninstall of unused software) this cost could be avoid-
(c) The usage trend analysis shows that many users
run this software only for a few minutes every
time they are using it. It’s possible they only need
this software to read files produced by others.