Software Asset Management: What is SAM?

If your licenses were uncomfortable to sit on all day, you might pay more attention to them. But they’re intangible, and their terms and conditions only have an immediate effect on your business during contract renewals and audits. So they’re easy to forget about.

Licenses are long, complex, and boring. Reading them is time consuming, and might require dual degrees in computer science and the law. Not something most of us have in our back pockets.

The consequence is that most of us don’t know what we’ve licensed. It means that we’re unaware of the limits of our licenses, but more importantly, we have no idea what we’re entitled to do. A spreadsheet doesn’t know what’s in your licenses either. But the product catalog in a SAM tool does.

Each vendor has its own set of metrics for determining how to measure usage.

Here are just a few of the licensing metrics:Per core, Per device, Per named device, Per user, Per named user, Per processor (CPU count), Per processor value unit

In a complex environment with software products from a range of different vendors, it can be easy to lose track of how usage for each product is determined. This level of complexity cannot be efficiently managed with a spreadsheet.

Depending on the number of devices running the software, how it’s configured, virtualization, and the number of people or applications accessing it, a company’s licensing situation can be overly complex.

The situation is compounded by the fact that a company doesn’t run just one piece of software. A single company might use thousands of different software products, making it nearly impossible to get an overview with spreadsheets of who is using what, how often, and when.

Because cloud-based software isn’t installed on a physical machine in your network, it can be difficult to know which business unit is responsible for the costs. In a large organization, sharing cloud software licensing can help to keep down costs, but without a clear overview of who is using it, when, and how often, business units may end up taking on an unfair portion of the costs, forcing them to allocate budget for resources they don’t use.

To trust your compliance position, you need to trust the data it’s built on. Knowing what kinds of licenses to buy, how many, and with what usage rights requires good data. Without clean, high-quality data, you might end up with agreements that neither meet your business needs nor are the right fit for your environment.

SAM touches a lot of departments from procurement to human resources and various IT disciplines. All these departments need to get behind a single SAM initiative. That means a SAM project manager has to have a talent for herding cats. And for talking to different types of people with different needs and goals. That takes time and dedication to the cause. One thing is for sure, Software Asset Management is a team effort!

• Know who and how each business unit buys software licenses
• Define standardized processes and rules for license procurement
• Establish standardized processes for storing licenses and license certificates
  

• Create a central license inventory (if you don’t already have one)
• Move all licensing agreements and software maintenance contracts to the inventory
• Establish an organizational system (responsible people and processes) that allows you to locate licensing documents and information easily
• Learn what your license metrics are to measure the licenses you need
• Appoint a license manager to administer/maintain the your inventory
  

• Use discovery and inventory tools to find out what software is actually installed in your environment
• Normalize software titles to make sure you can match a license to them

When cataloging your software, it can be easy to miss things installed on systems not currently running or not currently hooked up to the network.

• Install discovery tools on all systems, so you don’t miss anything
• Inventory open source systems (like Linux) because while the OS might not need a paid license, it might still be running software that does

Find out when a software title is being used and how it’s installed (or not e.g. cloud), configured, and accessed.

Once you’ve cataloged your entire system and recorded usage data:

• Go back to your license inventory and make sure that your licenses cover all of the ways in which the software is installed and used
• Apply product use rights to get the full value of your licenses and save costs
  

• Look for licensing models that best fit your software usage habits and IT environment
• And keep tracking usage to maintain compliance

While continuously updating:

• Software titles - as users download new software, upgrade programs, or enter the cloud
• The software usage and IT environment data
• The license inventory to track contract milestones, and capture new purchases and changes to licenses like upgrades or downgrades
  

The results of your SAM process and data transparency will allow you to use your licenses more efficiently:

• See where you’re over- and under-licensed. Then reallocate your available licenses to cover your needs, saving you money on new licenses and reducing audit risk.
• Don’t forget maintenance! If you’re not using a license, then don’t forget to cancel the maintenance contract.
• When contract renewals come up, use your SAM insights to negotiate better agreements for your company.
  

Software Asset Management (SAM) refers to the process of managing and optimizing the software assets of an organization throughout their entire lifecycle, from acquisition to disposal. SAM involves tracking the installation, usage, and licensing of software applications, as well as ensuring that the software is used in compliance with licensing agreements and regulatory requirements.

The goal of SAM is to help organizations maximize the value of their software investments while minimizing the risks and costs associated with software licensing, usage, and management. By maintaining an accurate inventory of software assets and managing them effectively, organizations can reduce the likelihood of over-licensing or under-licensing software, optimize software usage, and avoid costly non-compliance penalties.

SAM also involves ensuring that software is regularly updated and patched, to mitigate the risk of security vulnerabilities and maintain the integrity and availability of the software. Additionally, SAM can help organizations identify areas where they can consolidate or streamline their software assets, to reduce complexity and cost.

Software assets include any software application, program, tool, or system that an organization has acquired and uses to support its operations, such as:

1. Operating systems (e.g., Microsoft Windows, macOS, Linux)
2. Productivity software (e.g., Microsoft Office, Google Workspace)
3. Design and engineering software (e.g., Adobe Creative Suite, Autodesk)
4. Database management software (e.g., Oracle, Microsoft SQL Server)
5. Security software (e.g., antivirus, firewalls, intrusion detection systems)
6. Cloud-based software and services (e.g., Salesforce, Dropbox, AWS)
7. Development and testing tools (e.g., Visual Studio, Eclipse)
8. Business intelligence and analytics software (e.g., Tableau, Power BI)
9. Communication and collaboration software (e.g., Zoom, Slack)
10. Customer relationship management (CRM) software (e.g., Salesforce, HubSpot)

These are just a few examples of the many different types of software assets that organizations may have. It's important for organizations to maintain an accurate inventory of their software assets and manage them effectively to ensure compliance, optimize usage, and reduce costs.

Yes, it is essential to have a strategy in place before implementing a SAM solution. A well-planned strategy helps ensure that the SAM implementation is aligned with the organization's goals and objectives and that the implementation is carried out efficiently and effectively.

Here are some key elements to consider when developing a SAM strategy:

1. Define goals and objectives: Define the goals and objectives of the SAM implementation. This includes identifying the specific outcomes the organization wants to achieve, such as cost reduction, risk mitigation, compliance, or optimization.
2. Assess the current situation: Assess the organization's current software assets, licensing agreements, and usage patterns. This includes identifying any gaps or inefficiencies in the current SAM processes.
3. Develop a SAM policy: Develop a comprehensive SAM policy that outlines the organization's standards and guidelines for software acquisition, usage, and disposal. The policy should cover all aspects of SAM, including licensing, compliance, and security.
4. Establish roles and responsibilities: Identify the roles and responsibilities of the individuals or teams responsible for SAM. This includes designating a SAM manager or team to oversee the implementation and ongoing management of the SAM program.
5. Implement SAM tools: Select and implement SAM tools that are aligned with the organization's goals and objectives. This includes selecting tools that can track software usage, licensing agreements, and compliance requirements.
6. Train staff: Provide training to staff to ensure they are aware of the SAM policy and understand their roles and responsibilities. This includes educating staff on how to use SAM tools and how to report software issues.
7. Monitor and evaluate: Monitor and evaluate the effectiveness of the SAM implementation regularly. This includes tracking software usage, license compliance, and cost savings.

The implementation of a SAM solution can be time-consuming, depending on the complexity of the organization's software environment and the level of detail required for the SAM solution. However, the benefits of implementing a SAM solution usually outweigh the time and resources required to set it up.

The time required for the implementation of a SAM solution depends on several factors, including:

1. Size and complexity of the organization: The larger and more complex the organization's software environment, the more time it will take to implement a SAM solution.
2. Existing SAM processes: If the organization has some SAM processes already in place, such as a basic inventory of software assets, it may take less time to implement a more comprehensive SAM solution.
3. SAM tools: The selection, installation, and configuration of SAM tools can also affect the time required for implementation.
4. Staff training: The time required for staff training can also impact the overall implementation time.
5. Data accuracy and completeness: The accuracy and completeness of the organization's data related to software assets, licensing agreements, and usage patterns can affect the time required for implementation.

It's important to note that while the initial implementation of a SAM solution may require time and resources, ongoing SAM processes can help streamline software management and reduce costs in the long run. Once the SAM solution is in place, ongoing monitoring and maintenance can be done more efficiently, saving time and resources over time.

The implementation of a SAM tool may require internal resources, depending on the size and complexity of the organization's software environment and the level of detail required for the SAM tool implementation. However, the amount of resources required can vary based on the chosen tool and the extent of the implementation.

Here are some factors to consider when assessing the resources needed for implementing a SAM tool:

1. Size and complexity of the organization: The larger and more complex the organization's software environment, the more resources may be required for the implementation of a SAM tool.
2. Level of detail required: The more detailed the SAM tool implementation, such as tracking usage and license compliance across multiple departments, the more resources may be required.
3. Availability of internal expertise: If the organization has internal expertise in SAM and software management, it may require fewer resources to implement the SAM tool.
4. Level of customization: The more customization required for the SAM tool, such as integrating with other software or modifying workflows, the more resources may be required.
5. Training and support: The amount of training and support required for staff to learn and use the SAM tool can also impact the resources needed.

It's important to note that while implementing a SAM tool may require internal resources, it can also provide significant benefits to the organization, such as reducing costs and improving compliance. By properly scoping the implementation and identifying the necessary resources, organizations can successfully implement a SAM tool with minimal disruption to their operations.

The cost of a Software Asset Management (SAM) solution can vary depending on several factors, including the size of the organization, the complexity of its software environment, the level of detail required for the SAM solution, and the specific SAM tool or tools selected. However, investing in a SAM solution can ultimately lead to cost savings and improved efficiency in managing software assets.

Here are some factors that can affect the cost of a SAM solution:

1. Size and complexity of the organization: The larger and more complex the organization's software environment, the more costly the SAM solution may be.
2. Level of detail required: The more detailed the SAM solution, such as tracking usage and license compliance across multiple departments, the more expensive it may be.
3. SAM tools: The cost of SAM tools can vary widely depending on the functionality and features provided.
4. Implementation and customization: The cost of implementation and customization of a SAM solution can also impact the overall cost.
5. Staff training: The cost of staff training can also add to the overall cost of a SAM solution.

While a SAM solution may require an initial investment, it can ultimately lead to significant cost savings by improving software license compliance, reducing the risk of software audits and penalties, optimizing software usage and though spend reduction by +30% for software licenses and cloud subscriptions, and streamlining software management processes. Therefore, it's important for organizations to carefully assess the potential benefits of a SAM solution and weigh them against the cost.

Yes, Software Asset Management (SAM) can have a Return on Investment (ROI) for organizations. The ROI of a SAM solution can vary depending on the size and complexity of the organization's software environment, the level of detail required for the SAM solution, and the specific SAM tool or tools selected. However, investing in a SAM solution can ultimately lead to significant cost savings and efficiency improvements.

Here are some ways that a SAM solution can lead to ROI:

1. Improved license compliance: A SAM solution can help organizations ensure that they are properly licensed for the software they use, which can reduce the risk of software audits and penalties.
2. Streamlined audit preparation: A SAM solution can help to reduce the audit response time by +50%.
3. Software usage optimization: A SAM solution can help organizations identify underutilized software and reduce the amount of unnecessary software licenses, leading to cost savings by +30% for software licenses and cloud subscriptions.
4. Streamlined software management: A SAM solution can help organizations streamline software management processes, reducing the time and resources required for software administration.
5. Better negotiation with software vendors: A SAM solution can provide organizations with more accurate data on their software usage, which can help them negotiate better pricing and licensing terms with software vendors.
6. Reduced security risk: A SAM solution can help organizations ensure that they are using up-to-date software versions and patches, reducing the risk of security breaches and data loss.

Overall, the ROI of a SAM solution can be significant for organizations that invest in it. By carefully assessing their software environment and needs, and selecting the right SAM tool or tools, organizations can improve software management processes and reduce costs in the long run.

Finding the right Software Asset Management (SAM) vendor can be challenging, as there are many vendors in the market offering various SAM solutions. Here are some steps you can take to help you find the right SAM vendor for your organization:

1. Define your requirements: Before selecting a SAM vendor, you should define your organization's specific SAM requirements. This includes the size and complexity of your software environment, the level of detail required for the SAM solution, and any specific features or functionality that you need. Defining your requirements can help you identify SAM vendors that meet your needs.
2. Research SAM vendors: Once you have defined your requirements, you can start researching SAM vendors. Look for vendors that have experience working with organizations similar to yours, and read reviews, e.g. portals like G2 or Gartner Peer Insights, and case studies to learn more about their products and services.
3. Evaluate SAM tools: Once you have a list of potential SAM vendors, you can evaluate their SAM tools. This includes looking at the functionality and features provided, the ease of use and customization, and the level of support and training offered.
4. Check vendor's reputation: You should also check the reputation of the SAM vendor you are considering. This includes looking at their customer satisfaction ratings, their financial stability, and any industry recognition or awards they have received.
5. Request demos and trials: Once you have narrowed down your list of SAM vendors, request demos and trials of their SAM tools. This will allow you to test the tools and see if they meet your requirements and are a good fit for your organization.
6. Get quotes and negotiate: Finally, once you have selected a SAM vendor, request quotes for their SAM solution and negotiate pricing and terms. This can help you get the best deal and ensure that you get the most value from your investment.

By following these steps, you can find the right SAM vendor for your organization and ensure that you get a SAM solution that meets your needs and provides value.

Software Asset Management (SAM) is a complex process that requires the involvement of various stakeholders within an organization. Here are some of the typical SAM stakeholders that are involved in SAM initiatives:

1. IT Department: The IT department is responsible for managing the organization's software environment and is typically heavily involved in SAM initiatives. They are responsible for implementing and maintaining the SAM solution, as well as ensuring that software is properly installed and used.
2. Procurement Department: The procurement department is responsible for purchasing software licenses and managing vendor relationships. They play an important role in SAM by ensuring that the organization is properly licensed and compliant with software vendor agreements.
3. Finance Department: The finance department is responsible for managing the organization's financial resources and ensuring that the organization is cost-efficient. They play an important role in SAM by tracking software expenditures and identifying cost savings opportunities.
4. Legal Department: The legal department is responsible for managing the organization's legal and regulatory compliance. They play an important role in SAM by ensuring that the organization is compliant with software vendor agreements and licensing requirements.
5. Business Units: The business units that use software are important stakeholders in SAM. They are responsible for ensuring that software is used efficiently and effectively, and for providing feedback on the SAM solution.
6. Senior Management: Senior management is responsible for setting the organization's strategic direction and ensuring that SAM initiatives align with the organization's goals. They play an important role in SAM by providing support and resources for SAM initiatives and communicating the importance of SAM to the organization.

Overall, SAM is a cross-functional initiative that requires the involvement of various stakeholders within an organization. By working together, these stakeholders can ensure that the organization's software assets are properly managed and that the organization is compliant with software vendor agreements and licensing requirements.