{"id":30288,"date":"2019-11-19T11:22:17","date_gmt":"2019-11-19T11:22:17","guid":{"rendered":"https:\/\/www.intelligentcio.com\/africa\/?p=30288"},"modified":"2019-11-22T10:38:02","modified_gmt":"2019-11-22T10:38:02","slug":"the-changing-importance-of-software-asset-management","status":"publish","type":"post","link":"https:\/\/www.intelligentcio.com\/africa\/2019\/11\/19\/the-changing-importance-of-software-asset-management\/","title":{"rendered":"The changing importance of software asset management"},"content":{"rendered":"\n<p><strong>According to reports, the global software asset management (SAM) market is expected to reach US$3.92 billion by 2026. And thanks, at least in part, to the growing adoption of cloud solutions in South Africa, local companies are starting to see the value for SAM as well. Nicole Oliveira, Software Services Business Unit Lead at Altron Karabina, looks into this in more detail.<\/strong><\/p>\n\n\n\n<p>Even\nthough businesses here are lagging their peers in more developed markets, they\nare slowly getting to the point where they see SAM as critical to success in a\nconnected environment. Traditionally, many have approached SAM on an ad hoc\nbasis. <\/p>\n\n\n\n<p>There\nhas been little by way of integrating it as an ongoing managed service.\nHowever, while doing a point-in-time SAM approach might be a quick fix\ninitially, it can quickly spiral out of control six months down the line when\nthe business is stuck in a similar position if no controls are in place.\n<\/p>\n\n\n\n<p>Instead,\nSAM must be viewed as something other than a compliance exercise. It is about\ndelivering value to the organisation in terms of optimisation. Furthermore, SAM\nenables decision-makers to gain a clearer understanding of the solutions they\nhave at their disposal, and how best to digitise those going forward when it\ncomes time to do budget planning.<\/p>\n\n\n\n<p><strong>The business imperative of\nSAM<\/strong><\/p>\n\n\n\n<p>SAM\nis critically important to help organisations reduce spend on software,\noperations, and support. Yet, many decision-makers are reluctant to embrace\nthese tools. But if a company is to evolve into a cloud-centric entity that\nwill meet the digital requirements of doing business in the Fourth Industrial Revolution,\na new approach is required.<\/p>\n\n\n\n<p>Make\nno mistake, SAM is a significant exercise to undertake especially if the\norganisation has never had any real control of what was happening in its IT\nenvironment. <\/p>\n\n\n\n<p>What makes executives especially nervous is the daunting process doing so from scratch will entail. Implementing SAM takes a concerted effort and resources which many businesses feel they can rather spend on things that deliver more strategic value, at least from a perception level. <\/p>\n\n\n\n<p>The reality is that those who have not yet gone through a SAM exercise will inevitably either get burnt during an audit process or reach a stage where their software does not deliver the value required to enable organisational growth.<\/p>\n\n\n\n<p><strong>Overcoming\nobstacles<\/strong><\/p>\n\n\n\n<p>One\nof the biggest problems in not going the SAM route is that eventually software\nwill reach their end of support stage. And while some might argue that all that\nis required is buying new solutions, it turns into an expensive exercise,\nespecially if the software was not used to its full potential before. This will\nsee the organisation then sitting with a similar kind of solution where it\ninvested heavily and is only leveraging 10% of its capacity.<\/p>\n\n\n\n<p>Furthermore,\nmany software providers often change product names and features on an almost\nannual basis. Just keeping track of this becomes a full-time job never mind an\nembattled IT department trying to keep the lights on.<\/p>\n\n\n\n<p>This\nis where a SAM partner becomes an indispensable ally to help companies\nunderstand the solutions they currently have, but more importantly, what will\nbe required for the business to grow.<\/p>\n\n\n\n<p><strong>SAM\nintegration<\/strong><\/p>\n\n\n\n<p>However,\nSAM does not operate in isolation of what is happening in the rest of the\nbusiness. So, by integrating a SAM approach into the broader company strategy, decision-makers\nwill get visibility into how software can empower them to reach their company\ngoals.<\/p>\n\n\n\n<p>Having a trusted partner becomes essential as they would have to understand where the business wants to go and how it needs to evolve from a software perspective to reach that point.<\/p>\n\n\n\n<p> For example, if the company is transitioning to the cloud, the partner will be able to bring an understanding of what software is required and tweak it as the organisational needs change. Additionally, the partner will also ensure that the existing investments the business has made into software will not be wasted but can be applied to enable the solutions to still deliver future value.<\/p>\n\n\n\n<p><strong>Changing\nmindset<\/strong><\/p>\n\n\n\n<p>The\nonus is also on partners to approach how they position SAM differently. Companies\ndo not want to have a compliance discussion unless they have fallen foul of the\nregulator. In this case, they will automatically be turning to a SAM approach.<\/p>\n\n\n\n<p>Instead,\nbusinesses must be made to understand how embracing SAM will enable them to deliver\non strategy, become more agile, and get visibility on the solutions they have\nat their disposal.<\/p>\n\n\n\n<p>By\nits nature, this visibility will result in improved compliance as there will be\na better understanding of what is currently installed. In doing so, the\nbusiness will have better cost optimisation and control over the solutions its\nemployees use and can also more effectively manage risk.<\/p>\n\n\n\n<p>This\nall points to enabling strategy and delivering value. For this to happen, it is\nimperative for the organisation to start taking SAM seriously.<\/p>\n\n\n\n<p><strong>Service\nprovider considerations<\/strong><\/p>\n\n\n\n<p>When\nselecting a partner to assist the company on the SAM journey, choose one that\nshows interest in understanding the business. This extends beyond the strategy,\nbut also includes the customer pain points as well as where the organisational\nstrategy is headed.<\/p>\n\n\n\n<p>It\nis about delivering the most value possible using software as the tools to do\nso. A partner must be invested in where the business is headed and then\nplugging SAM into that to facilitate this journey. Working with a partner that\nunderstands the nuances of the cloud must be prioritised. <\/p>\n\n\n\n<p>These\nservice providers will have the tools in place to optimise the potential\nproductivity gains to be generated by moving to the cloud and maximise the use\nof the software that has been purchased. When SAM becomes entrenched in the business, it will enable\neverything from migration to modernisation, right-sizing to\nconsolidation.&nbsp;<\/p>\n\n\n\n<p>A\ncloud service provider is about more than just selling products but optimising\nsolutions. It is as much about helping customers make the right purchasing\ndecisions as it is about helping them manage their choices well.<\/p>\n\n\n\n<p><strong>Old\nschool<\/strong><\/p>\n\n\n\n<p>The\nSAM approach usually entailed running a vendor tool, going through a data validation\nprocess, and then cleaning software up where necessary. However, as more\ncompanies adopt internal tools a shift is taking place in the market.<\/p>\n\n\n\n<p>The\nevolution of SAM is seeing the introduction of paid-for solutions and other\ninventory optimisation tools to make software easier to manage. Automation also\nmakes this considerably quicker to do than previously. Other tools can look at\ncertain areas of the organisational environment depending on the needs of the\ncustomer.<\/p>\n\n\n\n<p>But\nto do a full SAM approach, companies need a holistic tool that tracks all\naspects of the IT journey. SAM must therefore be considered a business enabler\nespecially as organisations are looking to digitally transform themselves.<\/p>\n\n\n\n<p>But\nbefore they can embrace digitalisation fully, they must first understand what\nthey have currently installed. SAM must therefore be integrated into existing\nprocesses. This requires a conscious decision of the organisation to enforce\nthe policy and procedures required to make SAM work.<\/p>\n\n\n\n<p><strong>More\nfocus<\/strong><\/p>\n\n\n\n<p>SAM\ncannot be done as an afterthought. It is an ongoing exercise that requires a\ndedicated team to manage it and not just IT personnel. These SAM-specific teams\ncan also account for aspects of procurement as they extend their reach\nthroughout the organisation. <\/p>\n\n\n\n<p>Just\nimagine the number of user requests to manage when it comes to new software or\neven renewing existing licenses. It therefore makes sense to have dedicated\nresources to manage the process.<\/p>\n\n\n\n<p>The\narrival of multinational data centres has resulted in an increasing focus\naround cloud solutions. This means SAM revolves around as much as understanding\nresource utilisation and associated cost-savings as it does around whether the\ncompany is gaining the maximum benefit from its Office 365 licenses by way of\nexample.<\/p>\n\n\n\n<p>SAM\nin this cloud environment must encompass cost optimisation as it entails an\nintricate understanding of what resources are used where. The huge growth in\ncloud-based applications will see the local SAM market changing to be more\nreflective of the connected environment.<\/p>\n\n\n\n<p>In\nturn, this will see the introduction of SAM-as-a-service. If a company does not\nhave the right tools in place to manage its solutions, it becomes impossible to\nkeep pace with evolving technology changes. This is where automated solutions\nbecome critical to optimisation so businesses can get on with the day-to-day\nrunning of the organisation.<\/p>\n\n\n\n<p><strong>Moving\nfrom the shadows<\/strong><\/p>\n\n\n\n<p>One\nof the biggest obstacles to overcome with SAM is the emergence of shadow IT in\norganisations. This sees employees downloading and installing software (mostly\nconsumer-centric) when corporate solutions are not in place. Again, the\nimportance of policies and procedures to manage this becomes essential.<\/p>\n\n\n\n<p>This\nis where the organisation works with its employees to ensure they go to the SAM\nteam and determine if there are no existing solutions available to address\ntheir specific requirements. If there are not, then enterprise-grade solutions\ncan be reviewed and acquired accordingly. Going through this process helps\nensure the solutions are more effectively maintained, especially when it comes\ntime for renewal or other aspects around licensing.<\/p>\n\n\n\n<p>Given\nthe shift towards the cloud, local companies need to rely on partners that\nunderstand this more dynamic environment beyond what is available on-premise.\nOften, the partners that are borne in the cloud will be better able to assist\ncompanies in the digital future. And this is where the likes of being licensed\nsolutions partners and licensed cloud partners become critical to the success of\nSAM at a business, irrespective of its size or industry sector.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>According to reports, the global software asset management (SAM) market is expected to reach US$3.92 billion by 2026. And thanks, at least in part, to the growing adoption of cloud solutions in South Africa, local companies are starting to see the value for SAM as well. Nicole Oliveira, Software Services Business Unit Lead at Altron [&hellip;]<\/p>\n","protected":false},"author":25,"featured_media":30291,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[4950,136,6,275,399,183,262],"tags":[8989,41,1002,11757,11756,11758,11755,453],"class_list":["post-30288","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-analysis","category-industry-expert","category-insights","category-intelligent-technology-newsletter","category-more-news","category-software","category-used","tag-altron-karabina","tag-data-centres-2","tag-fourth-industrial-revolution","tag-nicole-oliveria","tag-sam","tag-sam-as-a-service","tag-software-asset-management","tag-south-africa"],"acf":[],"publishpress_future_workflow_manual_trigger":{"enabledWorkflows":[]},"_links":{"self":[{"href":"https:\/\/www.intelligentcio.com\/africa\/wp-json\/wp\/v2\/posts\/30288","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.intelligentcio.com\/africa\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.intelligentcio.com\/africa\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.intelligentcio.com\/africa\/wp-json\/wp\/v2\/users\/25"}],"replies":[{"embeddable":true,"href":"https:\/\/www.intelligentcio.com\/africa\/wp-json\/wp\/v2\/comments?post=30288"}],"version-history":[{"count":5,"href":"https:\/\/www.intelligentcio.com\/africa\/wp-json\/wp\/v2\/posts\/30288\/revisions"}],"predecessor-version":[{"id":30310,"href":"https:\/\/www.intelligentcio.com\/africa\/wp-json\/wp\/v2\/posts\/30288\/revisions\/30310"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.intelligentcio.com\/africa\/wp-json\/wp\/v2\/media\/30291"}],"wp:attachment":[{"href":"https:\/\/www.intelligentcio.com\/africa\/wp-json\/wp\/v2\/media?parent=30288"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.intelligentcio.com\/africa\/wp-json\/wp\/v2\/categories?post=30288"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.intelligentcio.com\/africa\/wp-json\/wp\/v2\/tags?post=30288"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}