Software Asset Management (SAM)

Organizations use SAM to maintain a clear understanding of their software inventory, streamline license management, and optimize software spending. SAM also supports compliance by tracking software usage and ensuring adherence to licensing agreements.
Examples

1. License Optimization: A commercial real estate firm’s IT team uses SAM to identify unused or underused software licenses. By reallocating licenses to active users, the company lowers unnecessary spending on software purchases.
2. Compliance Management: A large law firm relies on SAM to make sure all software installations comply with vendor agreements. During an audit, SAM tools provide detailed reports, preventing fines and reputational damage.
3. Cloud Subscription Tracking: A construction firm uses SAM to monitor cloud software subscriptions. By tracking usage metrics, the company ensures it only pays for what it actively uses, reducing costs and preventing subscription bloat.

• Cost savings by getting rid of and reallocating unused licenses and optimizing software spend.
• Improved compliance with accurate tracking of software licenses and usage.
• Improved efficiency through streamlined license management processes.
• Reduced risk of audits and penalties by maintaining vendor agreement adherence.
• Better decision-making with clear visibility into software inventory and usage.

To measure the effectiveness of SAM, track these metrics:

• License Utilization Rates: Assess how effectively software licenses are being used.
• Cost Savings: Measure reductions in software spending through optimized license allocation.
• Compliance Metrics: Track successful audit outcomes and adherence to licensing agreements.
• Subscription Usage Rates: Monitor the utilization of SaaS subscriptions to identify waste.
• Audit Preparedness: Evaluate how quickly and accurately SAM can produce reports for vendor audits.

To implement SAM effectively, follow these steps:

1. Inventory Software Assets: Create a detailed inventory of all software licenses, subscriptions, and installations.
2. Establish Policies: Define rules for acquiring, using, and retiring software assets to maintain control and compliance.
3. Automate Tracking and Reporting: Implement SAM tools to automate license tracking, usage monitoring, and reporting.
4. Optimize Continuously: Regularly analyze software data to reallocate licenses, eliminate unused subscriptions, and ensure compliance.