UK organizations need to act now to avoid the risks associated with Microsoft’s price increase announcement

Microsoft recently announced that it will be increasing its UK software prices in June 2012. This increase will have a major negative impact on an organization’s IT budget, leading to many having to unexpectedly increase their software expenditure within an already tough financial year.

With careful management of your license entitlements and effective control of your procurement process, however, we believe that if you act now, you can negate this risk and even go on to save significant amounts of money.

Over the last 10 years, while developing our leading license management tools, we have seen many organizations get caught out by this type of vendor announcement. The main reason for this is that many organizations fail to keep comprehensive records and therefore continue to acquire licenses when they actually don’t need them – add a vendor price increase and you compound the problem even further.

The key consideration right here and now is timing; to put it bluntly you don’t have long to get your house in order before the price rise hits.  But all is not lost; creating an Effective Licensing Position (ELP) – essentially understanding you current license situation, where you have risks through over-use and where you are spending unnecessarily – can be done quickly with the right tools and skills.

Where new licenses do need to be bought; it makes sense to do this before June.  But that means starting now so that you have time to reconcile your actual software inventory against the license entitlements held by your organization.

Looking forward, it is equally important that organizations address the continuing increase in software prices by minimizing their new license purchases.  One way to do this is to implement more effective controls to manage the complete lifecycle of the software management workflow – from providing the end user with a defined self-service catalog of approved applications, through to an automated approvals process, an integrated license availability check and finally deployment.  By using a solution like License Dashboard SAM Portal to ensure that all software requests follow a prescribed workflow, organizations can be assured that all software deployed on the network is there for a good business reason.

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Ben Eagling

Ben Eagling

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