SAManage IT Management Blog

Most companies today manage their technology inventory by logging and tracking assets manually, a process that is both cumbersome and error-prone. In fact, more than 65 percent of companies have immature IT asset management strategies in place, according to Meta Group.

Companies who don’t use automated tools to manage hardware and software inventory are likely to face significant challenges. For a variety of reasons, they will struggle to effectively monitor the various components within their infrastructure, and maximize the value of IT assets throughout their lifecycle.

A Dynamic Business Landscape

Today’s organizations are undergoing rapid change – mergers and acquisitions, expansions or downsizing, etc. Each one of these changes has an impact on IT inventory, making hardware and software asset management somewhat of a “moving target”. For example, new employees will require new equipment, while a layoff will make PCs, software licenses, and IT other assets available for use by others. Opening a new branch may call for the purchase of new hardware, while a shift in business strategy may require new applications to be acquired and deployed. This type of dynamic, ever-changing environment makes taking IT inventory a challenge.

A Geographically-Dispersed Network

Long, long ago, companies operated out of a single location. If they wanted to know what IT assets they had, and where they were located, they simply walked around and took stock. However, today’s firms do business on a global scale, with branches, offices, and even remote or home-based employees performing work out of numerous locations spread across the world. With IT assets housed at so many different locations, it becomes harder to manually monitor changes or additions in the environment, such as when an employee installs software on a PC, or when a new peripheral like a scanner or printer is connected to a network. As a result, IT asset inventory logs can quickly become outdated.

Constant Asset Upgrades or Replacement

Technology innovations emerge at a sharp pace, as new and better software and hardware solutions are being introduced by vendors all the time. And, while technology budgets are stagnant or shrinking in today’s tough economic times, companies still invest in the latest and greatest solutions to help them maintain an edge. The acquisition of new hardware, software, or subscription-based technology services means more than just a new physical asset to track – there are financial assets to consider, like contracts and software license management.

Only comprehensive, fully automated IT asset management solutions can help organizations keep their technology inventory up-to-date and balanced at all times, even in the face of rapidly-changing architectures and business conditions. With IT asset management systems, businesses can achieve complete, real-time visibility across their entire technology landscape, knowing exactly what they have, where it is located, and how it is being used at all times.

Learn more about powerful, on-demand IT asset management solutions from SAManage, and how they can help you can avoid the pain of manually managing your IT assets

As technology budgets continue to remain stagnant (IDC expects only a 2.6 percent increase in spending this year), companies need to find – and eliminate – the hidden software costs that can drain IT funds.

What are some of the best ways to reduce hidden software costs?

Eliminate Extra Licenses
Gartner believes that US businesses overbuy licenses for 60 percent of their software portfolio. This creates hidden software costs in the form of excess vendor fees, as well as unnecessary property taxes. By using a software asset management system to better organize software licenses and IT contracts, companies can more precisely identify and discard extra licenses, saving as much as two percent of their annual operating budget.

Remove Unused Application Modules
During the software sales cycle, many vendors have a way of talking buyers into purchasing modules they don’t need, or bundles that include components that really aren’t necessary. Additionally, many companies continue to maintain software that, although valuable at one time, is no longer required by end users.

With an IT asset management solution in place, organizations can readily identify which applications are being used, and more importantly, which ones aren’t. By getting rid of those that are sitting idle, companies can avoid paying for maintenance – or even for the solution itself – by canceling in advance of an invoice. Gartner estimates that, by doing so, firms can reduce their annual technology operating budgets by as much as one percent.

Improve the Accuracy of Software Depreciation
Incorrect depreciation processes are a leading cause of hidden software costs. When organizations overvalue their software, they lose valuable tax write-offs. With a software asset management solution in place, businesses can improve the accuracy of software valuation, which – according to Gartner – can yield a one-time reduction of up to 10 to 20 percent of depreciable software assets.

Stop Unnecessary Software Acquisition
Companies often waste money on software they simply don’t need. A request comes in from an end user, and a new package is purchased – even though there is already a similar solution, perhaps with available licenses, in house. By using an automated tool to maintain an up-to-date inventory of all software assets, companies can stay fully aware of what they already own at all times. This can reduce hidden software costs by avoiding unnecessary software acquisitions.

Minimize “Renegade” Purchasing
By helping companies create, define, and enforce formal IT purchasing procedures, IT asset management solutions can put the proper controls in place to prevent unauthorized buyers from acquiring software without adherence to corporate policies and budgets.

Find out how you can eliminate hidden software costs at your company. Learn more about powerful, SaaS IT asset management solutions today.

Unauthorized software utilization is at an all time high. In fact, in the Sixth Annual BSA-IDC Global Software Piracy Study, released last month, it is estimated that more than one-fifth of all software currently running on PCs has been installed illegally. These findings are likely to prompt software vendors to be more proactive – and as a result, companies of all sizes will be at an increased risk of a potential software audit.

The laws surrounding software licensing are clear – each and every license agreement allows for a specified number of concurrent users, named users, CPUs, etc. Anything above and beyond those outlined specifications is considered non-compliance. And, any lack of software license compliance uncovered during a software audit will result in stiff financial penalties.

Software license management solutions can help companies ensure adherence to licensing agreements by allowing them to track software allocation and installation, and compare it their purchase contracts. With these innovative, feature-rich systems, software license compliance is made easy through unhindered visibility into all software-related activities across the enterprise.

With or without a software license management system in place, your organization will need to be prepared to prove software compliance if and when you are subject to a software audit. Some tips to follow:

1. If you receive a letter indicating that you are under investigation, cooperate fully. Your cooperation could garner leniency from the vendor’s legal representation if you are found to be non-compliant.
2. Compile all documentation required to prove software compliance. For example, you may be asked to provide dated purchase receipts, packing slips, invoices, copies of license agreements, software documentation, and the original CDs shipped to you by the vendor.
3. Be prepared to make your IT resources available to auditors, as a software audit can take anywhere from a few days to several weeks, depending on the complexity of your environment, and will require assistance from internal staff.
4. It may also be wise to call in a consultant, attorney, or other professional who specializes in software compliance issues.  There are many legal implications that can arise when a software audit takes place, and you’ll need to make sure risks and problems are dealt with correctly.  So its best to have an expert on your side from the start.

But perhaps the best tactic to take when it comes to software compliance is to avoid any surprises that may come up if an external software audit takes place, by performing your own internal audits on a regularly scheduled basis. Software asset management solutions from SAManage streamline and automate all software audit-related processes, allowing your staff to efficiently perform frequent checks, to ensure full adherence to licensing agreements at all times.

What is Software Asset Management?

Learn how companies can improve IT efficiency and ensure license compliance with Software Asset Management.

Download our quantifying the value of software asset management white paper.

When it comes to virtualization, there are many things to consider before executing your plan. Sure, there are many advantages – among them reduced costs, improved flexibility and scalability, optimized performance, and minimized administrative burden – and you want to begin reaping those benefits as quickly as possible. But, without proper attention to software licensing and compliance considerations, your new virtualization strategy could actually put your company at risk.

Virtualization makes it possible to run multiple operating systems and applications on the same physical hardware at the same time. This approach has added a level of complexity to software license management. Even the slightest change in the virtual environment – which nowadays can be completed in just minutes – can have a profound impact on existing licenses.

How do you minimize your exposure? Many experts agree that software license management systems can help companies overcome the compliance challenges associated with license virtualization.

Compounding the problem is that, to date, vendors have yet to get on the same page when it comes to software virtualization and related license requirements. Although they can agree on one thing – that software virtualization will make per-server and per-user pricing a thing of the past – varying support, limits, and restrictions among fee structures have left companies unsure how to address license virtualization.

Microsoft was the first to take this problem seriously, introducing a simple license virtualization plan several years back that would allow customers to pay for licenses based on the number of processors the software will run on in virtual mode. Since then, some vendors have taken measures to make their licensing approaches more “virtualization friendly”. But, many others have yet to follow suit, creating tremendous confusion and concern among companies who are embarking on software virtualization strategies.

With SAManage, license compliance is made easy, even in environments where software virtualization plays a prominent role. By providing companies with a greater ability to track the licenses contained both on physical desktops, as well as within virtual machines, and reconcile them with what’s been purchased, companies can more effectively achieve compliance and eliminate the risk of fines and penalties in the event of a third-party audit.

Additionally, SAManage solutions make it easy to audit installed software at any time. Audits can be conducted automatically, in just minutes, without the need for IT staff to waste countless hours manually performing related tasks. This is particularly important because virtual environments are far more dynamic than physical ones. So, audits related to license virtualization need to be conducted far more frequently to keep compliance in check.

Visit our Web site to learn more about license virtualization, why it’s so important to your software virtualization strategy, and how software license management solutions from SAManage can help your company stay compliance as you begin to “virtualize”.

In a recent King Research survey, approximately two-thirds of the more than 340 IT professionals from mid-market companies polled claimed they were not properly addressing license compliance, with unlicensed software existing somewhere within their organization. An even higher number – more than 70 percent – state that they are unprepared for a vendor audit and the potential fines that could result from lack of license compliance.

These results demonstrate the enormous risk that IT departments at small and mid-sized business face when it comes to license compliance. Gartner claims that as many as 70 percent of mid-sized businesses and larger enterprises have already faced an external software audit over the past few years. And many other industry pundits expect the number of audits to increase in the coming months, as the struggling economy forces software vendors to scrounge for revenues as more and more customers scale back their licensing agreements or cancel their maintenance plans.

But, ensuring license compliance presents many challenges. For example, as businesses purchase more and more applications from different vendors, and deploy a growing number of desktops, licenses become much harder to keep track of.

Experts agree that software asset management (SAM) and software license management solutions are among the most effective ways to ensure adherence to existing licensing agreements. With the right technologies in place, companies can more accurately log and monitor their software inventory. This makes it easier to gain insight into license allocation, immediately detect the presence of illegally-installed or unauthorized applications, and promote license compliance across the enterprise.

With solutions from SAManage, license compliance is made easy. Businesses have all the tools they need to:

• Uncover and minimize the risk associated with license non-compliance
• Track adherence to software installation guidelines
• Easily manage licenses and terms in a comprehensive, readily accessible repository
• Automate and accelerate internal audits, and document license compliance results
• Implement and enforce formal software usage policies

What is Software Asset Management?

Learn how companies can improve IT efficiency and ensure license compliance with Software Asset Management.

Download our quantifying the value of software asset management white paper.

When it comes to software asset management, there are many aspects to be considered. But perhaps the most critical is the tracking of software inventory. In fact, Gartner believes that ensuring that inventory records are accurate, up to date, and consistent with those of the various software vendors a company works with, is an essential part of the asset management process.

But what makes software inventory management so important? Some of the key factors that contribute to the growing need for effective logging and tracking of software inventory include:

Security

With breaches, data theft, and other cyber crimes on the rise, companies need to boost protection of their desktops, laptops and other systems. But, without unhindered insight into existing PC and Software inventory, it will be harder to identify when users download and use unauthorized software packages – such as games, chat programs, or applications from unknown or unreliable sources – that put these internal systems at risk.

Compliance

The frequency of external software audits is rising at a rapid pace. Understanding current licensing arrangements, and guaranteeing full adherence to them, requires the ability to correctly track how many licenses were purchased, and how many users/desktops have actually deployed the application(s).

License Costs

In today’s tough economy, companies of all sizes, across all industries, are embarking on aggressive cost-cutting measures. Shelfware and unused licenses – which can be eliminated through a comprehensive software inventory management strategy – are simply wasted money, and must be avoided. Additionally, businesses can avoid paying for upgrades, license transfers, and other items they may be entitled to by gaining greater insight into their software license inventory and related contracts through having an accurate software asset inventory and tracking your software asset.

In addition to addressing these critical requirements, well-defined and well-enforced software inventory management policies can result in other benefits, such as:

Improved vendor negotiations

The ability for a company to compare what they have to what they are actually using can help them avoid unnecessary expenses when the time comes to renew licensing agreements, and can put them in a better position to negotiate exactly what they need to renew.

Increased auditing efficiency

A Gartner Group anonymous December, 2006 survey uncovered the fact that 35% percent of clients had experienced an on-site audit from a major software vendor. And, the leading research firm expects this trend to continue, with more vendors conducting an even greater number of audits in the near future. A solid software inventory tracking plan will eliminate the need to perform cumbersome manual audits, which can distract from other critical IT projects, in these situations, by making the complete, accurate data auditors are looking for readily available whenever needed.

Achieving and maintaining software license compliance is a challenging task in today’s ever evolving business environment, yet organizations must be in a position to control the business risks associated with failing to comply with license terms and risks derived from using unauthorized software.

As new computers are deployed and software gets installed, auditing changes to your assets and comparing these changes against your software license repository can be complex and cumbersome considering the variety of software and computers used in a typical organization today, regardless of their size.

Part of the SAManage IT Asset Management service, the Compliance Manager verifies software license compliance at any time by continuously comparing the company’s software inventory (software installed and used across your network) with the software licenses (actual licenses owned by the company) and resolve the company’s software license compliance status. When a software license compliance gap is detected, you can easily see how many licenses are missing and take action to resolve it, either through license reallocation or by acquiring additional licenses.

The SAManage Compliance Manager can help you organize your software licenses and IT contracts and help reduce software licensing costs by highlighting any excess licenses you own. You can use the information in your upcoming renewal negotiation or to reallocate licenses across your company.

License compliance can be viewed at the company level for all software assets used by the company, or at the contract level to make it easy to pinpoint license compliance gaps for a specific contract. To get started, users enter the software licenses they own into the contracts repository and store all their software licenses on record. Next, a correlation between the software license and the matching inventory item takes place using the TAG mechanism. Once that correlation is in place, the Compliance Manger will constantly correlate licenses against inventory to ensure software license compliance – no further maintenance required.

Learn how Software License Compliance becomes simple with SAManage and how you can verify your license compliance standing at any time. Sign-up for your free 30-day trial of SAManage today.