Recent research from analysts IDC revealed annual software spending will surpass $600 billion by 2021. 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 a detailed insight of all the different applications that are in use, so that they can identify applications which are redundant or carry out similar functions, and determine whether they are actually at all 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 A further benefit of software asset management, is that it enables organizations to identify unauthorised and outdated applications, which can expose organizations to security risks.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.