Managing the contradiction between rising spend & declining budgets
This eGuide will help you on your journey to managing software costs and driving full value from your investments with both strategic and long-tail software vendors.
There is good news and bad news for IT and finance leaders when it comes to technology spend in 2021 and beyond. The good news is that analyst firms are predicting growth in spending as organizations continue their transformation to support a workforce that’s hybrid by design, rather than remote by necessity.
The bad news is that many of those same leaders are under instructions from the top to cut costs. If that sounds contradictory, it is. But, then again, it isn’t.
Technology spending is no longer the preserve of IT departments. Lines of business are increasingly self-selecting and self-funding the technologies they feel they need to be productive and innovative. This trend was already in motion well before 2020, but the last 12 months saw a marked increase in what used to be labelled ‘shadow IT’ but is now simply ‘technology spending’.
With software expected to account for around 30% of business technology spending in 2021, it’s an obvious area to prioritize in terms of managing costs.
Source: Spiceworks Ziff Davis, The 2021 State of IT
This eGuide will outline three key steps you can take to gain control of software spend by applying the right approaches to cost management: Cost Cutting, Cost Optimization and Value Optimization (it will also explain why these are not one and the same thing).
Understanding cost cutting, cost optimization and value optimization
Rationalize and renegotiate
Realize full value from it
Each phase represents an iterative process, a gradual progression that starts with finding ways to cut waste and ends with identifying opportunities to drive full value from your investments.
In this guide, you’ll learn:
Where to start looking for cost savings
Strategies for exercising cost optimization and how to differentiate these from cost cutting
How to ensure your organization is fully benefiting from the investments you’ve made
Your IT cost management journey starts with
having the right data
Why you need visibility into your environment
Before embarking on your cost management journey, you’ll need a baseline understanding of the software in use across your organization. This is something that can be provided by good Software Asset Management (SAM) data.
If you don’t currently have a SAM program in place, speak to one of the ridiculously helpful experts at SHI to understand the fastest and most effective way to start generating software insights you can act on.
And if you do have a SAM or ITAM program already, it’s worth asking yourself whether your processes and technologies were designed for a largely on-premises software estate. If so, these will likely come up short as more software usage is in the cloud, more devices are remote and new types of devices are being used to access expensive applications and services.
Having a good baseline of software data has never been more important or as challenging.
Conquer challenges in getting a holistic view of your estate.
Despite knowing how important good visibility is, most organizations struggle with managing multiple tools, each providing visibility into different subsets of their environments. For instance, MDM technologies for mobile devices, specialized tools for cloud, and often separate tools for ITAM, deployment and security … and the list goes on.
Collecting and aggregating data from multiple sources that then needs to be validated and cleansed requires expertise you may not have in house.
For years, the default position of internal teams has been to buy a SAM tool and run it in-house. That works well if you have the resources to run an effective tools management program and the skills to optimize your licensing and subscriptions.
Arguably, a smarter way to look at the challenge of managing software is to bring in the experts – and not just the technology – to provide the insights you need to make important decisions with confidence.
Thankfully, SHI has a skilled team of Software Asset Management professionals, equipped with an extensive portfolio of technologies, that mean no matter what software you’re running or in what environment, we can help you realize the cost management objectives outlined on the following pages.