The Five Biggest SAM Misconceptions

The benefits of software asset management (SAM) are becoming more well-recognized, but several fallacies continue to hold some organizations back from achieving the full potential from their SAM investments. Many organizations assume SAM is solely to resolve audits, but it’s much more than that one-shot exercise and expense. It provides greater benefits when it is used to comprehensively track, manage and observe software lifecycle. Still five common misconceptions continue to prevent many organizations from implementing SAM best practices and optimizing their software portfolios.

Since procurement is responsible for acquiring software, it’s natural—albeit wrong—to assume it is also responsible for tracking it throughout its lifecycle. Procurement has the purchase history, but is not privy to information on product lifecycle, usage rights, usage data or the install base. Taking SAM to the next level requires more deeper analytics than a purchase receipt.

Mergers and acquisitions are a major motivator for software vendor audits, since when organizations merge the acquired software license agreements are often overlooked. Software publishers know this and suspect past agreements won’t align with the new company structure. They are usually right, since organizations are typically more focused on other logistics. “Knowing these software assets are really important when you buy another company,” says Rik Schaap. “That will come back to bite you.”

SAM is too often viewed as a one-shot exercise, and viewed as heavy expensive through that lens. This is a mistake since SAM can play a major role in creating long-term ROI from software investments. Without consulting a dedicated SAM specialist, organizations typically don’t see future cost-savings realized through: application rationalization, preventing unneeded upgrades, and eliminating duplication through software cross-functionality.

The misconception that SAM is only needed during a software vendor audit is gradually fading. In fact, more companies are recognizing the reality that once targeted for one software audit, others often loom on the rumours of non-compliance. An effective, ongoing SAM practice protects during audits.

Software license and contract management are often overlooked when it comes to software lifecycle management. Enterprises purchase software in large volumes without full understanding of its usage rights, resulting in improper installation and the associated audit risks.

By moving past these misconceptions organizations can take the steps required to implement SAM as a process and truly look at their software from lifecycle perspective.