Software Asset Management: Organizing Dispersed Assets

Thank you!

The 2023 SaaS report has been sent to your email. Check your promotional or spam folder.

Oops! Something went wrong while submitting the form.

‍

According to a study by Digitala Vetenskapliga Arkivet, unauthorized software usage, tracking license compliance, and maximizing software utilization are major issues that organizations face.

As a result, this could lead to soaring costs, security vulnerabilities, and potential legal repercussions.

This is where software asset management (SAM) tools come in. Implementing a strong SAM strategy will bring order to the disarray, optimizing your software investments while mitigating risks.

Imagine having complete visibility and control over your SaaS stack, ensuring you manage your assets effectively and track them with workflows.

Read on as we show you how software asset management can help bring order to the chaos, guiding you through best practices and everything else.

‍

1. What Is Software Asset Management?

Software asset management involves keeping track of your digital assets like applications, licenses, and contracts.

In other words, it's about organizing and managing the software you've purchased or subscribed to. With SAM, you gain complete control over these assets, ensuring you use them effectively without chaos or confusion.

A. Why Is Software Asset Management Important?

Staying compliant with software licensing agreements is crucial for effective asset management. Not following vendor terms can lead to serious consequences. By managing and monitoring licenses, you ensure compliance, avoid penalties, and protect your organization's reputation.

Additionally, SAM enables you to optimize your software spending by eliminating redundant or underutilized licenses.

Here are the other reasons why SAM is crucial:

It provides complete visibility into your software stack so you know exactly what you have and where it's deployed.
It helps mitigate security risks by identifying unauthorized or outdated software.
It streamlines software procurement and renewal processes, ensuring you never miss a renewal date.
It helps you to accurately forecast software you might need in the future software, based on usage data.

‍

2. What Are The 3 Pillars of Asset Management?

The three pillars of effective asset management are:

A. Inventorying Assets

To manage your assets well, start by creating a complete list of what you own. This means tracking all your SaaS apps, software licenses, subscriptions, and digital assets. You also need to record important details like purchase dates, expiration dates, users, and where the software is used. Keeping an up-to-date inventory helps you make better decisions about your assets.

B. Assessing Conditions and Hazards

After you’ve listed everything, the next step is to check the condition of each asset and any potential risks. For example, identify outdated software that could have security problems. Regularly review licenses to make sure you're compliant and avoid penalties. This step is about spotting risks and taking action to prevent them.

C. Maintaining Assets

The last step is to maintain your assets for the best value. This means renewing licenses on time, reassigning unused licenses, and removing old software. Keeping software updated and secure is also key. Regular maintenance helps keep your assets working efficiently.

These three pillars - inventorying, assessing, and maintaining - form an interconnected cycle.

By diligently following this cycle, you will effectively manage your software assets, reduce costs, mitigate risks, and maintain a well-organized SaaS portfolio.

‍

3. Challenges of Managing Diverse Software Assets

It is never an easy task to manage a diverse software asset. You will likely face many challenges that can quickly spiral into chaos if not appropriately addressed. Let's see some of the major hurdles you might be facing:

A. Complexity of Licensing Models

SaaS vendors offer various licensing models, like perpetual, subscription-based, and concurrent user models. Understanding these complex agreements can be tricky. It's important to know the details of each model and make sure your organization stays compliant.

B. Lack of Visibility and Control

Without a centralized system, keeping track of your SaaS assets is difficult. You may not know who’s using what software or where it’s deployed. This lack of control makes it hard to track licenses, deployments, and expiration dates, leading to compliance issues and unnecessary spending on unused or duplicate assets.

C. Fragmented Tools and Processes

Many organizations still use manual processes and spreadsheets to manage software licenses and renewals. This method is prone to errors, time-consuming, and hard to integrate with other IT systems. It can lead to missed renewals, inefficiencies, and overspending on unused software.

D. Budgetary Constraints and Cost Optimization

Balancing software purchases with budget limits is tough. You need to provide your team with the right tools while avoiding overspending on unused or unnecessary software. Finding the right balance between cost optimization and efficiency is an ongoing challenge.

E. Auto-Renewal of Contracts and Rise of Unused Licenses

Sometimes, you may have a software license that’s no longer needed due to changes in your organization, but auto-renewal clauses can keep you paying for it. These unused licenses can go unnoticed, leading to wasted resources and unnecessary costs.

4. How Does CloudEagle Streamline Software Asset Management?

A. Centralized Software Asset Dashboard

CloudEagle offers a centralized dashboard, which consolidates all your asset data into one place. It allows you to view essential details about your software, such as licenses, usage statistics, and contract terms, all in one place.

This eliminates the need to switch between multiple systems, saving time and making it easier to manage your software assets. With everything accessible from a single interface, CloudEagle helps IT teams stay organized and on top of their software portfolio.

The dashboard provides a clear overview, whether you're tracking installations or checking license statuses. This centralized view not only simplifies software management but also enables quicker, more informed decisions, improving the overall efficiency of your IT operations.

B. Shadow IT Elimination

Shadow IT is when employees use unapproved software without informing the IT department. CloudEagle helps by automatically finding any software that’s not officially approved. Once it spots these apps, IT admins can decide whether to allow, replace, or remove them.

CloudEagle eliminates Shadow IT, reducing security risks and ensuring software usage follows company rules. It also prevents wasting money on unapproved software. With real-time tracking, IT can easily manage and ensure only approved software is in use.

C. Real-Time Usage and Spend Tracking

With real-time usage and spend tracking, CloudEagle shows you exactly how your software is used and what it costs. It helps you identify underused or overused apps so you can cut unnecessary licenses or remove them.

This real-time tracking helps you save money by ensuring you're not paying for unused software, allowing you to reallocate your budget to more important needs and get the best value from your software investments.

D. Automated License Management

CloudEagle streamlines the entire license management process by automatically tracking and monitoring software licenses across your organization. Its intelligent system helps ensure that all software licenses are accounted for and up to date, reducing the risk of compliance issues or unexpected costs.

Also, the tool simplifies license management by automatically tracking software licenses. Its license reclamation feature helps save money by identifying unused or underused licenses, revoking them, and reassigning them to other users or departments. This keeps your software portfolio efficient, cost-effective, and compliant.

E. AI-Powered Contract Management

CloudEagle’ai’s AI metadata extraction feature streamlines contract management. The tool automatically tracks and analyzes your software contracts and extracts key details like renewal dates, contract terms, and usage rules to set up timely renewals, ensuring you never miss important deadlines.

It also helps identify opportunities to renegotiate contracts for better terms, such as renewing licenses at a lower cost or consolidating contracts with vendors. This smart management ensures you get the best deals and avoid unnecessary spending.

F. Enhanced Renewal Management

CloudEagle helps you stay ahead of software renewals by sending automated reminders when contracts are approaching expiration. This proactive approach ensures you never miss renewal deadlines, giving you time to decide if the software is still needed or if it's time to negotiate better terms or switch providers.

Effective renewal management allows you to evaluate the value of software before renewing. CloudEagle ensures you're not renewing unnecessary software, helping you avoid overspending and keep your software portfolio aligned with your business goals for more informed decision-making.

G. Cost Optimization Insights

CloudEagle provides cost optimization insights by analyzing your software usage, license counts, and contract terms. It highlights software that’s underused and suggests ways to reduce unnecessary spending.

These insights help you make smarter financial decisions, streamline your software portfolio, and ensure you're only paying for tools that add real value to your organization.

H. Integration with Existing ITAM/ITSM Tools

CloudEagle seamlessly integrates with over 500 apps, including your existing ITAM and ITSM tools, like ServiceNow or Jira, enhancing your current workflow without any need for changes. It simplifies sharing and managing software data across teams.

By connecting with your existing tools, CloudEagle ensures smooth data flow, helping you efficiently track software, manage licenses, and stay compliant—all without disrupting your ongoing processes.

I. Cross-Team Collaboration Tools via Slack

CloudEagle boosts team collaboration by seamlessly integrating with Slack. It automatically sends key updates and notifications about software assets to the appropriate channels, ensuring that teams in IT, procurement, and finance are always informed and can act swiftly.

5. Benefits of Software Asset Management With CloudEagle

CloudEagle helps streamline software management, reduce costs, ensure compliance, and improve collaboration across teams.

A. Cost Savings

With SAM, you gain complete visibility of your SaaS portfolio. This visibility will allow you to identify and eliminate redundant or underutilized licenses. This optimization ensures you don't overspend on software you don't need, resulting in significant cost savings for your organization.

B. Compliance and Risk Mitigation

Failing to comply with software licensing agreements can lead to hefty fines and legal issues. SAM helps you stay compliant by providing accurate license metrics tracking and usage monitoring. Additionally, it helps mitigate security risks by identifying unauthorized or outdated software installations.

C. Maximized Software Utilization

By having a centralized view of your SaaS assets, you can ensure they are being used to their full potential. SAM enables you to reallocate licenses and optimize usage, preventing wastage and maximizing your SaaS investments.

D. Streamlined Procurement and Renewals

SAM helps automate the procurement and renewal processes. It ensures you never miss a renewal date or accidentally let a crucial software license expire. This streamlining allows you to save time while minimizing disruptions.

E. Informed Decision-Making

With comprehensive data and analytics provided by SAM tools, you can make informed decisions about your software investments. This includes forecasting future needs, identifying trends, and making the best choices that align with your organization's goals.

‍

6. Implementing a Software Asset Management Program

Implementing an effective software asset management program is an ongoing process. It requires a structured approach and commitment from your organization. Here are the steps you should follow:

A. Appoint a SAM Champion and Team

The first step in implementing a SAM program is to appoint a dedicated SAM champion and assemble a cross-functional team. This team should include representatives from IT, procurement, finance, and other relevant departments. Having a SAM champion ensures accountability and drives the program forward.

B. Conduct a Software Audit

Next, conduct a comprehensive software audit to establish a baseline inventory of all your IT assets. This includes identifying installed software, licenses owned, and their respective usage patterns. A thorough audit is crucial for gaining visibility into your current SaaS stack.

C. Define Clear Policies and Procedures

Once you have a clear picture, define policies and procedures for software acquisition, deployment, and usage. These guidelines should align with your organization's goals and industry best practices. Well-defined policies ensure consistency and compliance across all departments.

D. Choose And Implement A Software Asset Management Tool

After establishing policies, choose and implement a robust SAM tool that suits your organization's needs. This platform will be the central repository for managing your software assets, tracking licenses, and generating reports. Investing in the right SAM tool is essential for streamlining processes and maximizing the benefits of your SAM program.

E. Ongoing Monitoring and Optimization

Finally, ongoing monitoring and optimization are important for your SAM program's success. Regularly review your software inventory, usage, and license agreements. Find ways to improve, like reallocating unused licenses or renegotiating contracts. Continuous improvement keeps your SAM program effective and flexible as your organization's needs change.

Learn how CloudEagle.ai streamlined software management at Edge by helping them track spending, uncover new apps, and optimize operations in this testimonial from Iffi Wallah, Co-founder and CEO.

Insert video: [https://youtu.be/oHfb3OqLuh4]

7. Conclusion

Effective software asset management (SAM) and SaaS management are a must, not an option. A strong SAM strategy will help bring order to the management of your SaaS assets.

SAM offers many benefits, like better software license management, cost savings, compliance, improved software use, and smarter decision-making.

Take action now to get on track. Review your current processes, set up a dedicated SAM team, and invest in the right tools. By embracing SAM, you'll make the most of your software investments, reduce risks, and cut down on waste.

Schedule a demo with CloudEagle and take control of your digital resources.

‍