Software as a Service

Your SaaS Contract Renewal and How SAM Can Help

Why your SAM solution must be cloud compatible, and not just for compliance

If your organization, like many others, has made the switch from on-premise to SaaS as part of your migration to the cloud, now’s the time to consider how software asset management can meter software usage and eliminate unnecessary cost. According to Gartner, SAM is now a “critical mechanism to measure and manage the SaaS offerings” to prevent your organization’s usage rights being dictated by the software vendors.

In order to properly manage software licenses, and truly understand software usage, your organization requires sufficient visibility into which user is accessing what software. Traditionally, the goal would be for your chosen SAM solution to handle this in order to ensure compliance. With SaaS reducing compliance management requirements, and due to the inevitable changes in subscriptions when switching from on-premise, SAM should now handle this to prevent oversubscription, overspend, and reduced ROI.

Accurate software usage data from Software Asset Management to deliver savings

Your organization’s IT department has very little opportunity to reduce the amount spent with SaaS if they can’t understand what is and isn’t being used, and how. With full visibility, it’s easier to see how many licenses are needed, and which editions or functions are required, keeping costs down through the negotiation period, as well as during renewal. Replacing existing systems throughout IT will be costly and time-consuming, and so making savings after that initial investment will be essential, as well as understanding whether or not that investment has paid off.

If a team or department is not fully utilising its allocated SaaS, SAM will not only help identify this, but also to what extent. This could reveal ways in which your organization can better drive adoption and use, and therefore obtain the maximum value from your investment. Alternatively, SAM informs renewal decisions, making forecasting more accurate and reliable.

Pushing SAM into maturity

To understand your organization’s existing IT environment, any SAM tools you have in place must deliver cloud service metering. Prioritising software asset management, and treating it as an essential discipline in managing SaaS offerings and driving maximum value from software investments.

Ben Eagling

Ben Eagling

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