Software Licensing Featured Articles

Software Asset Management Consultant Saves Cost, Avoids Risks

December 25, 2012
By Ashok Bindra, Software Licensing Contributor

In a recent Flexera Software blog post, consultant Paul Winters talks about the benefits of a software asset management (SAM) licensing program at a major European banking and financial services organization, employing close to 200,000 people worldwide.  

The European organization embarked on a SAM and license optimization program in June while it was in the middle of a Windows 7 rollout.

Because the initial plan was to investigate the benefits of implementing a SAM program, the banking organization initially started with a pilot project covering the desktop environment of a single, selected country, involving approximately 7000 users.

During the first phase of the program, according to the piece, the company decided to focus on just 14 software products. But considering all the versions and editions, the total number jumped to 64.

The banking organization made no real gains using SAM program because of staff constraints and other IT projects on hand. In addition, the company was unable to assign full-time resources to the delivery of software asset management. 

So to effectively tap the benefits of SAM program, the company hired a Flexera Software SAM consultant to act as an interim Software Asset Manager within the organization. The impact was significant and noticeable in a few weeks.

By looking at true license consumption as opposed to just matching licenses to the number of software installations, and using the Product Use Rights Library built into the software license optimization tool, according to Winters, the consultant was able to help the company realize a $120,600 cost avoidance on several of the software products in the first week alone.

In the next two weeks, more than $325,000 worth of cost avoidance was achieved by identifying purchases the customer was unaware had been made, uncovering additional purchases that were wrongly classified, and by taking advantage of the available upgrade rights to the current version.

During the fourth week of the engagement, the consultant identified a huge exposure on Adobe Acrobat Pro, and by using the software license optimization system, he could see that there was very little usage of the application. Unused installations – those unused for at least a 90-day period in this case – were immediately removed.

This eliminated a license liability of about $335,000, Winters wrote.

In just four weeks of engaging a consultant, the customer achieved software cost and risk avoidance around $814,000. As a result of this success, the European banking and financial services organization has expanded the scope of the consulting engagement to cover an additional 24 software products (106 including versions and editions) and more savings and cost avoidance are expected.

In short, the blog post shows that the goals of the SAM and software license optimization program have now significantly changed for this customer. The company now plans to extend the SAM program to worldwide operations.

Meanwhile, to help more companies control costs and reduce risks associated with software assets, Flexera is offering SAM and license optimization ROI workshop. 

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