Worldwide IT spending is projected to total $3.7 trillion in 2018, an increase of 4.5 percent from 2017, and enterprise software spending is projected to grow 9.5 percent in 2018 and another 8.4 percent in 2019 to total $421 billion, according to Gartner, Inc.
While software spend is predicted to grow, procurement leaders are focusing heavily on cost savings with 78 percent citing cost reduction as their top business strategy for 2018. It is imperative that organizations have robust IT strategies and processes in place to procure effectively and manage their software spend.
Key Challenges in Managing Software Procurement and Spend
There are five key challenges that we typically see organizations face when trying to manage software procurement and spend:
- Fragmented catalogs across many software vendors
- No storefront for purchasing with lack of visibility into quotes, orders, invoices and purchasing history
- No formalized invoice process with approval workflows for the payment of invoices
- Lack of insight into cloud decisions, purchases and visibility into cloud consumption and “shadow IT”
- Lack of governance around contracts and managing consumption, which can expose your business to audit risk
As organizations shift their software deployments to the cloud, they need to have a comprehensive approach to managing software spend from on-premises to the cloud. Cloud brings its own challenges such as federated/“Shadow IT,” new ways of purchasing, and new methods of consuming software.
Another challenge organizations face is the lack of skilled procurement professionals in the market today. According to the Deloitte Global Chief Procurement Officer Survey 2018, 51 percent of procurement leaders believe that their current teams do not have the sufficient level of skills and capabilities to deliver on their desired procurement strategy.
So how can SoftwareONE and PyraCloud help?
Let’s address the five key challenges above and look at how SoftwareONE and PyraCloud can help each of the areas.
Fragmented catalogs across many software vendors
SoftwareONE has access to over 10,000+ publishers and has local presence in over 80 countries. PyraCloud provides customers with a global catalog of all publisher offerings within a single platform. Having access to global price lists with local currency and tax visibility allows customers to choose the best purchasing option, which in turn drives cost savings. Customers can use PyraCloud to customize their catalogs as per business requirements and demand, narrowing down the publishers and the products used by their organization. Customers can also set up enterprise approved shopping lists and create software package “favorites” to streamline the procurement process.
No storefront for purchasing with lack of visibility into quotes, orders, invoices and purchasing history
PyraCloud provides a centralized view of all quotes, orders, invoices and purchasing history for software procured through PyraCloud. If software was procured through another system, the information can be imported into PyraCloud. Quotes can be generated quickly and easily using the approved software catalog options and PyraCloud can integrate into existing procurement systems for seamless transactions.
No formalized invoice process with approval workflows for the payment of invoices
PyraCloud helps you manage the process from quote to order to invoice through an approval workflow. PyraCloud consolidates invoices on a regional or global basis helping to streamline the procurement process. Having visibility into quotes, orders and invoices within a single platform gives you clear visibility into your software spend from a local and global business unit perspective.
Lack of insight into cloud decisions, purchases and visibility into cloud consumption and “Shadow IT”
PyraCloud’s Decision Calculator allows users to specify their cloud resources and service requirements. Companies can use the information provided to determine which public cloud option would suit their requirements. On top of this PyraCloud’s Cloud Management Module provides full transparency into cloud resources so customers can govern, monitor and track cloud resources in order to more effectively control costs and optimize spend by providers, business units or applications.
Lack of governance around contracts and managing consumption, which can expose your business to audit risk
PyraCloud can help you govern and manage your software contracts and software assets in one centralized place. PyraCloud tracks software assets from point of purchase and allows users to keep track of all contract details, license agreement dates, entitlements and renewal dates. The PyraCloud EA True-up module can help you manage the Microsoft EA True-up process locally or globally from collection to asset allocation. Renewal Manager can help you keep on top of renewals and our Risk Profiler can analyze your top publishers based on installation and spend to determine which publishers have a higher chance of triggering an audit.
The Bottom Line
Procurement roles are becoming more complex with the adoption of cloud and Shadow IT. There is a lack of skilled resources in the market, putting even more pressure on organizations that want to drive procurement efficiencies and cost savings.
SoftwareONE can provide customers with insights to lower software and cloud procurement costs, predict future usage for budgeting and forecasting, track and manage spend by business unit and reduce compliance risk. PyraCloud will help customers govern and manage software portfolios from on-premises to the cloud so you can maximize the value of your software and cloud portfolio.