As part of its strategic objectives, the client was looking closely at its IT department, to see where it could save costs. In particular, the organisation had identified a large and ever-increasing portion of its IT budget was related to the purchase and ongoing maintenance of commercial off the shelf software. The client identified that a managed Software Asset Management (SAM) service would enable it to track software assets across all areas and at various points of its lifecycle and enable it to eﬀectively negotiate contracts.
As part of its strategic objectives, the client was looking closely at its IT department, to see where it could save costs. In particular, the organisation had identified a large and ever-increasing portion of its IT budget was related to the purchase and ongoing maintenance of commercial off the shelf software.
The software it uses to enable its environment is sourced through various arrangements, including via software resellers, directly from vendors, and is also often provided as part of service arrangements with third-party service providers.
This level of complexity made it extremely difficult for the client to adequately manage its software assets, and sought increased capability to provide the organisation with visibility over its holistic software usage, contracts, and obligated vendor requirements.
The maturity of SAM practices was leading to the inefficient usage of software, and sub-optimal commercial arrangements were costing more than necessary. The client recognised that as it grew, legal risks such as vendor penalties from non-compliant deployments were increasingly possible and could lead to costs and reputational risk.
The client was seeking to establish a fully managed Software Asset Management (SAM) service to enable it to track software assets across all areas and at various points of its lifecycle and enable it to effectively negotiate contracts. In particular, the client was looking for a SAM service that would provide the following outcomes:
- Substantial, tangible savings, cost avoidance and improved delivery of services to Agency software consumers;
- Increased awareness and mitigation of commercial and business risks;
- Improved vendor relationships and return on investment.
After consultation with ASG Group’s SAM capability team – Group 10 Consulting (Group 10) – the client selected Group 10 to establish a comprehensive SAM Managed Service, encompassing five key disciplines:
- SAM strategy and planning;
- Software procurement, including negotiation;
- Software contract management;
- Licence administration;
- Licence audit and compliance.
The client and Group 10 worked in collaboration to quickly understand the priorities and requirements. The SAM Managed Service was able to seamlessly integrate software management strategy, processes, people, and technology across the core disciplines, and allowed the client to adopt a more strategic and pro-active position in relation to the investment and management of software.
In the initial three years of the SAM Managed Service, the agency has been able to recognise software savings of over $33M, and $20M in cost avoidance.
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