Software can be termed as an IT asset similar to any hardware device used in workplaces. Software, being a useful asset offers dynamic financial and productive benefits but with ongoing expenses required for license renewals, support and version up-gradations. Therefore like all other organizational assets- whether physical, fiscal or digital, software assets need to be managed and monitored cautiously.

Unlike large-scale business enterprises, small businesses may or may not be managing purchases or IT departments. However, as per the size of the company, the management might take the software purchase decisions. With the technological advancement in the field of business, the IT support could be provided by an outsourcer; that also indicates that no one is assigned to monitor software and license utilizations. An employee might load a software on his PC to get a particular assignment done quickly which makes the business owner lose control of software licenses thereby making him liable for fines and penalties.

Large and Mid-size workplace face more of asset management challenge as IT departments have to cope up with user-demand and configure PCs without tracking proper license requirements. All these conditions force the organizations into rise of potential compliance issues. So to minimize this risk, organizations tend to buy more licenses than they actually require; although purchasing more licenses than requirement is not feasible for any organization and they cannot afford to do it. All this asks for a suitable Software Asset Management. Mentioned below are the reasons that mark the need of Software Asset Management:

Considering Software as an Asset

As per the recent studies and research, analysts have estimated that software related purchases account for 15-25% of corporate expenditures. Yet there are organizations that still in dark when it comes to management of these vital assets. They need to manage software through a common platform that can also set policies for corporate standards, evaluate software, help in managing purchase, monitor usage and compliance.

Software Audit

Numerous Software publishers have accelerated audit activities and they look at where the software is installed by comparing its information against purchasing records, utilization and upgrade rights related with individual applications or licensing agreements. If an organization fails an audit, then they can be liable to pay fines or whatever costs were needed to meet software compliance regulations. This might prove to be fatal for image of the organizations as they may be subjected to negative publicity due to unexpected impact on its revenue.

Establish Software Standards

Taking baby steps towards working for solutions and new procedures, just never works. Proper Software Asset Management asks for setting policies for corporate standards, software evaluation, purchasing, usage and compliance monitoring. Inventory needs to be checked against the licenses owned to ascertain compliance and guard against purchase of licenses that are actually not required.

Software Inventory

For effective Asset management, an organization needs inventory tools that support them in saving time and keeping the costs low, not only for IT department but for other business costs too. The information like application name, publisher, version etc help IT administrators in identifying where has the software been installed and who is running expired versions of the application. Without updated inventory information, organizations may land up in unnecessary legal situations.

Software License Optimization

Without an Software Asset Management utility, it becomes difficult to maintain a record of applications used, application name, date of purchase, publisher, expiry date or which license is installed on which system. Utilization of a single license at two different systems in a single network may prove fatal.

Enforcing Standards

Enforcing organizational software standards is vital, it is important to figure out which person requires which particular set of applications, which applications are used frequently, rarely or never. Standard enforcement marks the need of implementation of policy of removal of unauthorized and under-utilized software individual systems and keeps a check on license utilization too. Manual standard enforcement is never worth-while and not feasible at all.

Manage IT Asset Lifecycle

Managing IT asset lifecycle can be difficult without using Software Asset management utility. Moreover, managing IT asset lifecycle helps in redeployment of software assets from systems that are not being used or are going to be disposed. This kind of license recovery from under-utilized systems is a way to comprehend saving from a Software Asset Management utility.

Agility in Deployment

Readiness in software deployment is crucial within an organization as agility in deployment of software as per user needs saves time. Software Asset Management utility helps an administrator to show readiness in deployment.

Manage and calculate savings

Obviously, time saved in showing alertness with software deployment is also related to productivity. Moreover, recognition of location of particular software saves costs of excess purchases to meet requirements. Use of Asset Management utilities help administrator in saving time and money by performing hand-to-hand actions without moving from their workstations.

Software usage Reports for future references

Software utilization reports generated by Software Asset Management utilities are helpful for future references and for formulating future compliance policies for organization. Software utilization reports helps in tracking prices, profitability and transactions affecting value of inventory and current position & count of items in the inventory.