Grappling with the challenges outlined above by your lonesome doesn’t create an ideal situation. Remember that your time is valuable too, and the faster you start planning your SLM strategy, the faster you’ll receive savings. For that reason, relying on expert guidance is highly recommended to ensure your initial approach is dead-on before investing more time in cost optimization.
That’s why we developed SLM Cost Take-Out, our rapid, focused, and flexible solution that gives organizations the value they need using the optimal timeframe outlined to us. With thousands of successful SLM projects under our belt and decades of experience, we have the deep knowledge required to help our customers reach their goals.
We help our cost-conscious customers through a three-step process that starts with diagnostics, then grows into choosing your ideal path for software savings, which leads the way to us helping you realize your cost reduction strategy. Let’s examine each phase individually.
Begin with Diagnostics
Before you begin your cost savings journey, it’s essential to know where you stand. However, with many software assets hiding out-of-sight in the typical organization, it helps to receive some outside assistance. When you begin SLM Cost Take-Out, the team at SoftwareONE will interview stakeholders, collect data about your procurement, contract terms, software consumption, software use, administrative expenses, governance details, and more. Thanks to our proprietary diagnostic platform and inventory data analyzer, this incredibly thorough process takes only a few days.
Once we’ve finished our diagnostic analysis and understand your SLM environment inside-out, we are ready move onto the next step.
Identify Your Savings Opportunities
Once we’ve analyzed and established areas of improvement in your current SLM strategy, it’s time to look for areas where you can save. We’ll look across all corners of your organization for sources of savings, but we tend to find them in the following areas:
- Procurement – We’ll help you right-size purchasing volume, understand complex contract terms, determine usage rights, and impart valuable negotiation techniques to help you gain the upper hand during discussions with software vendors and publishers.
- Demand – IT teams can get pulled in a lot of directions by the other departments in their organization. We’ll help you make sure your team is only purchasing what they need and what they’ll use, and provide tips to manage demand going forward.
- Application Rationalization and Modernization – Your organization may find it difficult to identify and avoid the use of software with overlapping functionalities, which disrupts your ability to keep a lean portfolio. We’ll show you the steps you need to take to leverage volume discounts and optimize your operational costs by replacing out-of-date technologies at the same time.
- SLM Operational Efforts – We’ll help your team design and enforce clear policies and procedures that will reduce operational waste. This will improve your SLM processes long-term.
- Cloud (IaaS/PaaS) – Does your organization have trouble controlling cloud resource use? We’ll help you get a firm grip on your cloud spending by helping you utilize fit-for-the-purpose cloud resources, right-size cloud resources, ensure cost transparency, and more.
This assessment should take no longer than a day, although your team should spend as much time as needed to select the best path forward out of all your saving opportunities. Once you’ve determined the areas you’d like to focus on, we’ll start planning an actionable strategy to help you realize the full extent of your savings goals.
Start Your Journey
The final phase of the SLM Cost Take-Out service, “execution,” relates to how we’ll help you take action after we agree upon initiatives. This phase can be as brief as a few months or stretch to be a multi-year process depending on your requirements and priorities. During this phase, we’ll define and track the detailed steps you need to take, while helping you delegate responsibilities and find the ideal KPIs for your chosen savings initiative.
Through each of these phases, we aim to provide customers with speed, flexibility, and variability as we identify quick wins and rapid cost reduction. However, it’s worth restating that every organization will have a unique path to cost optimization which can drastically influence your savings. Although we’ve helped businesses save anywhere from 30 to 70 percent on their software investments, your true savings will depend on factors like your technological maturity level and your chosen focus areas for cost optimization. Nevertheless, we feel confident saying you’ll save up to 15 percent once this process is said and done.