In its new research, Gartner suggests three software license optimization practices to reduce the spending on the software by 30%. The three practices listed are application configuration optimization, recycling software licenses and by using software asset management (SAM) tools.
Commenting on the finding, Hank Marquis, research director at Gartner said, “Automated software license optimization is a relatively new discipline and most organizations are at lower levels of maturity. The variety of license entitlements also makes it tough for IT leaders to spot savings, especially in environments with many software publishers and titles. But it’s worth pursuing, as spending reductions contribute directly to the bottom line as gross profit.”
According to Gartner, the organizations will spend $332 billion on software in 2016. Gartner found the optimization technique from 800 of its clients, between May 2015 and March 2016.
Elucidating the optimizing of software configuration, Gartner report pointed out, “Software from large publishers has complex use rights and is costly. The default configuration for most software is normally the most expensive for clients as well. This blend of complexity and high cost offers your best chances to cut spending.”
“Such changes appear simple in hindsight, but they are not obvious, and your savings could be in the millions of dollars,” said Marquis.
Recycle Software Licenses is the recovery of unused license rights, thereby reducing the new purchases. The recycling is possible only when the software is metered to spot the unused, underused or misused software. To, a user may have a piece of software installed but never actually use it. SAM tools, and some client management tools, can find this usability.
Similarly, a SAM tool can automate, accelerate and improve manual processes. It can pay dividends over manual alternatives, and can often pay for itself.