Some good news
One positive shift in software asset management will be that 30% of SAM programs will be considered “strategic”. This means that compliance will take a backseat for many as the focus shifts to improved customer experience, integrated software supply chains, improved security and better business intelligence. This also means that organizations will need better advice regarding digital transformation, including end-to-end blueprints for making the changes real. Results from a recent Gartner survey support the premise as nearly 80% of individuals responsible for SAM report to a C-level role, and 27% of those responsible for SAM are themselves in C-level roles.
Arguably, many have predicted a recession for the U.S. coming within the next two years. This prediction is supported by notable firms like KKR who predict a U.S. recession by 2019 amidst a massive cycle of millennial deleveraging. Investment bank JPMorgan also warns that the next global recession will strike on 2020.
The Recession Probability Model prepared as part of the Guggenheim CIO Outlook suggests the next recession will begin in late 2019 to early 2020. When this economic slowdown occurs, an obvious reduction in IT spending will put the brakes on many technology investments, including those in asset management. However, customers will more aggressively look at cost savings approaches without massive capital investment. The translation here is that executives should push hard now for proper investment so that they are in position to help eliminate waste and unnecessary software expense during the slowdown.