Software Asset Management—What is SAM?
Definition
In short, Software Asset Management is more than a cost-saving measure. It’s a strategic approach that helps you stay compliant, optimize spending and protect your organization.
What does Software Asset Management include?
Software discovery
License compliance audits
Vendor and contract management
Cost optimization
Vulnerability management
Lifecycle management
The Software Asset Management Lifecycle
Software Asset Management is a continuous process - not a one-time project. A structured lifecycle ensures that software is discovered, evaluated, optimized and continuously monitored across the organization.
Discovery
Identify all installed and used software across on-premises, virtual and cloud environments. Automated tools collect installation and usage data to create a reliable foundation.
Inventory & Entitlements
Consolidate software installations and normalize product data. At the same time, centralize contracts, license agreements and product use rights to build a complete entitlement inventory.
License Position
Compare software usage with purchased entitlements to determine the Effective License Position (ELP). This reveals over-licensing, under-licensing and audit risks.
Optimization
Reallocate unused licenses, rightsize SaaS subscriptions and apply product use rights correctly. The goal is to reduce costs while maintaining compliance.
Continuous Monitoring
Track changes in users, infrastructure and cloud environments to stay compliant and audit-ready. Governance processes ensure long-term control and transparency.
SAM vs ITAM vs HAM
Software Asset Management (SAM) is often confused with IT Asset Management (ITAM) and Hardware Asset Management (HAM). While these disciplines are closely related, they differ in scope, objectives and operational focus. Understanding the differences helps organizations define responsibilities and build an effective governance structure.
| Software Asset Management (SAM) | IT Asset Management (ITAM) | Hardware Asset Management (HAM) | |
| Focus | Software licenses and usage | All IT assets | Physical IT assets |
| Scope | On-premises, SaaS and cloud software | Hardware, software, network and infrastructure | Devices, servers, storage and network equipment |
| Primary Goal | License compliance and cost optimization | Lifecycle management of IT assets | Tracking and managing physical equipment |
| Key Activities | License management, audit defense, SaaS optimization | Procurement, deployment, maintenance, disposal | Asset tracking, maintenance, depreciation management |
| Main Risk Area | Vendor audits and license non-compliance | Asset inefficiencies and lack of visibility | Asset loss and lifecycle gaps |
How they work together
IT Asset Management (ITAM) provides the overarching framework for managing all IT assets within an organization. Software Asset Management (SAM) is a specialized discipline within ITAM that focuses specifically on software compliance, usage transparency and cost control. Hardware Asset Management (HAM) complements both by ensuring physical devices are properly tracked and managed throughout their lifecycle.
Together, SAM, ITAM and HAM create full visibility, reduce financial and compliance risks, and support strategic IT decision-making.
ISO 19770 and industry standards
Software Asset Management is supported by international standards that provide a structured framework for governance, processes and data quality. The most important standard is ISO/IEC 19770, which defines best practices for implementing and operating a Software Asset Management (SAM) program.
The ISO 19770 family consists of several parts.
ISO/IEC 19770-1 SAM Management System
Defines requirements for establishing, implementing and continuously improving a Software Asset Management system within an organization. It focuses on governance, roles, policies, processes and compliance controls.
ISO/IEC 19770-2 Software Identification Tags
Specifies standardized software identification (SWID) tags that help organizations accurately identify installed software products. These tags improve discovery, inventory accuracy and automation.
ISO/IEC 19770-3 Entitlement Schema
Defines a standardized format for documenting software license entitlements, including product use rights and contract terms. This improves transparency and helps automate license reconciliation.
By aligning with ISO/IEC 19770, organizations can establish a structured, auditable and scalable SAM framework that improves compliance, transparency and cost control.
Key values of Software Asset Management
Governance
Centrally control license risks and govern the entire software lifecycle
Your value: 50% faster audit responses and less financial risks
Software Asset Management (SAM) helps you stay compliant and reduce financial and legal risks from vendor audits. It identifies and eliminates shadow IT, bringing unauthorized software under control to improve security and avoid wasted spend. With a centralized view of all software—on-premises and SaaS—you can make informed, data-driven decisions. SAM also manages the full software lifecycle, so you control costs from procurement to retirement.
Transparency
Get 360-degree view of your IT estate
Your value: A "Single Source of Truth"
Software Asset Management allows you to better understand your current IT estate, providing you the big picture into the organization’s software and hardware deployments, consumption, costs and licenses. Transparency reveals which software is not being used or is redundant that allows you to avoid unnecessary costs (waste reduction). According to Gartner, a strong SAM program can reduce the cost of wasted software by up to 60%. With precise usage data, companies can achieve better terms in contract negotiations with vendors.
Cost savings
Use SAM insights to lower licensing costs
Your value: 30% reduction of software costs
A SAM program helps you to understand your organization’s software and cloud requirements and determine your exact user needs, and thus allows you to eliminate costs associated with over-licensing or over-subscribing. Spend can also be reduced by identifying software licenses that can be re-harvested or reused. As a result, your organization does not need to invest in any new software licenses but can reclaim and reallocate software licenses to appropriate users.
Security
Include SAM to reduce cybersecurity risks
Your value: Reduce risk of security breach by up to 30%
Software Asset Management (SAM) strengthens your security by identifying vulnerabilities such as outdated and unpatched software before it becomes a threat. It helps your teams prioritize patches and updates based on a reliable, up-to-date inventory. SAM also supports identity and access control by detecting unused or orphaned accounts, reducing the risk of unauthorized access. And by tracking end-of-life software, you can retire unsupported applications before they turn into security risks.
Gartner® Peer Insight
“USU License Management (previously known as Aspera) is an excellent cost saving tool which helps in tracking all the software licenses and evaluating what licenses would be required by the users. The tracker helps the legal and finance team to track down the expiry of license of various application and remind them about renewing those licenses. This way, it maintains missing the renewal timelines and thus avoiding any interruption of services. It helps in overall tracking of contracts and licenses of different applications and thus helps the organization to run all the services smoothly.”
Healthcare company, 3B USD revenue
SAM Best Practices
Effective Software Asset Management requires more than tools. It depends on clear governance, defined responsibilities and reliable data. SAM should be established as an ongoing management discipline embedded in IT and financial processes — not as a reactive audit response.
Clear ownership is essential, as SAM involves multiple stakeholders across IT, procurement, finance and legal. Standardized and documented processes for software procurement, renewals, onboarding and offboarding create transparency and reduce compliance risks.
Accurate and automated data collection forms the foundation of every SAM program. Regular reconciliation of software usage and license entitlements ensures that the Effective License Position remains up to date in dynamic environments.
Organizations that treat SAM as a continuous process — with structured reviews and ongoing optimization — achieve long-term compliance stability, cost control and operational transparency.
Modern SAM evolution
Software Asset Management has evolved significantly over the past decade. What once focused primarily on on-premises license compliance has expanded into a broader discipline that addresses SaaS, cloud consumption and hybrid IT environments. Modern SAM is no longer limited to counting installations and reconciling licenses — it now provides strategic insight into software usage, cost structures and vendor dependencies.
The rise of subscription models, dynamic cloud infrastructures and increasingly complex licensing metrics has transformed SAM into a continuous, data-driven management function. Organizations must manage not only perpetual licenses, but also user-based SaaS subscriptions, consumption-based cloud services and rapidly changing workforce environments.
As a result, modern SAM integrates with FinOps, IT Asset Management and cybersecurity initiatives. It supports vendor negotiations, enables cost forecasting and strengthens governance across the entire software lifecycle. In today’s digital landscape, SAM is no longer a back-office compliance task — it is a critical component of financial control and IT strategy.
In modern Software Asset Management world, Agentic AI and Large Language Models (LLMs) will transition the discipline from static, reactive record-keeping to autonomous, proactive strategic management. While traditional SAM tools act as "librarians" cataloging licenses, Agentic AI acts as an "architect" or "co-pilot" that can reason, plan, and execute actions independently.
AI can evolve a SAM tool becoming a “digital worker” that continuously analyze, monitor, and optimize software usage across complex, multi-cloud environments. For example, it could turn 200 unused licenses into an automated recommendation to reduce procurement, rather than just listing them on a spreadsheet.
How to launch a SAM program?
1. Document and standardize your procurement processes
- 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.
2. Clean up and organize your license inventory
- 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 your inventory.
3. Catalog your software
- Use discovery and inventory tools to find out what software is installed in your environment.
- Normalize software titles to make sure you can match a license to them.
4. Inventory all your systems (Don’t forget open-source systems!)
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.
5. Determine software usage
Find out when a software title is being used and how it’s installed (or not e.g. cloud), configured and accessed.
6. Measure how many licenses you need per software usage
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 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.
7. Keep updating your license and software inventories
- 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.
8. Manage your licenses more efficiently
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.
How USU approaches SAM
USU approaches Software Asset Management as a strategic governance discipline that combines compliance, cost control and operational transparency. Rather than focusing solely on license reconciliation, USU enables organizations to establish a structured and sustainable SAM framework across on-premises, SaaS and cloud environments.
At the core of USU’s approach is data accuracy and automation. By integrating automated discovery, normalized software catalogs and centralized entitlement management, USU creates a reliable foundation for determining the Effective License Position (ELP). This allows organizations to identify compliance gaps, optimization potential and financial risks with confidence.
USU also emphasizes process integration. SAM is embedded into procurement, contract management, SaaS governance and renewal workflows to ensure continuous control instead of reactive audit preparation. Through standardized processes and transparent reporting, organizations gain full visibility into software usage, contract obligations and vendor exposure.
In modern hybrid IT environments, USU extends SAM beyond traditional license management to include SaaS optimization and cloud cost governance. By analyzing usage patterns and subscription models, companies can rightsize environments, re-harvest unused licenses and negotiate contracts based on factual insights.
The result is a structured, audit-ready and scalable SAM program that supports compliance stability, cost efficiency and long-term IT governance.
Would you like to learn more about USU's AI-driven SAM capabilities or see the tool live? Get in touch with us.
Summary
A SAM program 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 pays off for organizations to assess the potential benefits of a SAM solution and weigh them against the cost.
"Our software inventory covers over 1,500 items from more than 100 software publishers. We’ve been able to increase the productivity of the employees in software purchasing by 10%."
Thomas Stange
Head of License Management Department
BITMarck (Healthcare Service Provider)
More Resources
.jpg?width=342&height=197 "Why SAM and Cybersecurity are Better Together")
Frequently asked questions
1. What is the ROI of Software Asset Management?
The Return of Investment 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.
Typical ROI examples are:
- 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.
- Streamlined audit preparation: A SAM solution can help to reduce the audit response time by +50%.
- 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.
- Streamlined software management: A SAM solution can help organizations streamline software management processes, reducing the time and resources required for software administration.
- 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.
- 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.
2. Is the implementation of a SAM solution time-consuming?
Yes, implementing a Software Asset Management (SAM) solution can be time-consuming as it isn’t just a one-time project. It’s an ongoing journey that takes time, structure and commitment.
Even with modern, automated tools that simplify the process, it can take several months to build a mature and reliable SAM practice. The real value comes from continuously improving your data, processes and governance—not from a quick setup. The implementation time 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.
3. How much does a SAM solution cost?
For a company with 10,000 employees, the cost of a Software Asset Management (SAM) tool typically ranges from $50,000 to over $250,000+ per year, depending on the complexity of the IT estate, the depth of features required (e.g., SaaS management vs. complex data center licensing), and the vendor 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.
4. Who are typical SAM stakeholders within an organization?
SAM is a cross-functional initiative that requires the involvement of various stakeholders within an organization.
1. IT Department: Responsible for managing the organization's software environment and is typically heavily involved in SAM initiatives. The IT department is typically responsible for implementing and maintaining the SAM solution, as well as ensuring that software is properly installed and used.2. Procurement Department: 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: 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: Responsible for managing the organization's legal and regulatory compliance. Their role is to ensure that the organization is compliant with software vendor agreements and licensing requirements.
5. Business Units: These groups are very important stakeholders as they are responsible for ensuring that software is used efficiently and effectively, and for providing feedback on the SAM solution.
6. Senior Management: Responsible for setting the organization's strategic direction and ensuring that SAM initiatives align with the organization's goals. They normally are providing support and resources for SAM initiatives and communicating the importance of SAM to the organization.
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Brian Riley
Sales Development
IT Asset Management
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