Gartner research revealed that worldwide IT spending is projected to total $3.9 trillion in 2021, an increase of 6.2% from 2020. With the continuing adoption of cloud computing, much of this software will be Software-as-a-Service (SaaS); particularly as SaaS software can be purchased with ease by employees outside of the IT department. With so much software deployed – both in the cloud and on-premise – it is increasingly difficult for organizations to keep tabs on the applications installed.
According to Gartner, companies can reduce their software expenditure by up to 30% through simple, but effective, software portfolio management and optimization. Effective software asset management (SAM) can provide businesses with detailed insight into all the applications currently in use so they can identify redundant applications and eliminate any that are not needed.
This level of transparency not only empowers businesses to make informed decisions on the software they use, but also ensures they are better prepared for licensing renewals and impromptu audits – particularly to avoid costly penalties! A further benefit of software asset management is that it enables organizations to identify unauthorized and outdated applications, which can expose organizations to security risks. With an extensive overview of the software in use, including the version and patch level, organizations can recognize which applications are no longer supported by the supplier’s in-built protection; allowing them to identify vulnerabilities and risks, and take preventative action to strengthen information security.