“IT Software Asset Management” is a report based on the Web Forum presentation given by Michael Bender, Management Consultant for Silicon Valley Bank. Software Asset Management (SAM) is a business practice that involves managing and optimizing the purchase, deployment, maintenance, utilization, and disposal of software applications within an organization. This report looks at SAM’s potential benefits for your organization. You can read about the implementation process and its tactical nature, focused specifically on balancing the number of software licenses purchased with the number of actual copies installed. Learn how SAM can serve many different functions within organizations, depending on your software portfolios, IT infrastructures, resource availability, and business goals.

The following comes from a section of the report which explains some key findings related to SAM implementation (download the full IMF Report here):

“Centralized Software Asset Management ownership within an IT Governance type function is critical to overall program success. It gives one organization the capability to look at software compliance across the enterprise. A single department for cost collection can work for smaller organizations. However, for larger companies like Microsoft or Citibank, the recommendation would be multiple dedicated cost departments. Any enterprise with over $150M of IT spend should not use a single department because it is going to be too complex (but instead can adopt similar processes that keep these costs easily identified).

Variance reporting has been more difficult than expected. Some of the costs that are coming in have been amortized over a year so the question becomes how you report it. Do you report that variance the first time an invoice comes in after the purchase? Do you report that variance every month when the amortizations hit? Those are some challenges you will have to work through during the process. SVB made the decision to report the variance at the purchase and then forecast it.

You cannot just do this within IT because other teams have critical roles too. Different teams have different roles and integration is crucial. Take this case for example. If your Vendor Management function was a corporate procurement function then you need to have that partnership. If they do not step up to the engagement, you may even have to hire those resources. There are so many things that can impact your Software Asset Management if they decide not to contribute…”