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Software Asset Management
Most organizations understand the importance of
managing physical and financial assets and have the
expertise of maximizing value and minimizing costs, but a
few have mastered the ability to systematically and
strategically manage their software assets.
The software being one of the crucial intangible assets
makes it imperative for organizations to manage and
maintain them. The increasing Total Cost of Ownership
(TCO) of software calls for their efficient utilization in order
to reap the ROI on them.
The tools for management of software assets enable
centralized tracking of the software assets deployed to
ensure the software compliance norms. However, the
organizations need to continually improve their procedures
to strategically manage software assets, achieving
considerable cost savings—while managing risk—in the
process.
Questions to Consider
If any of the following questions cannot be answered in
affirmative, it’s high time that your organization implements
a SAM solution.
- If an audit is conducted in your organization on software
license compliance, what would the result be?
- Are you aware of the legal and financial exposure from
software over-deployment? *
- Do you know the number and type of software applications currently used
in your company by user,
business unit, and job function?
- Based on your actual annual software spend, do you
know the ROI by application and by user type?
- Do you have the proper controls in place for purchasing,
deploying and managing software assets?
- Is the TCO of software assets correctly accounted in the
organization’s financial statements?
- Are you able to track costs of the software applications
deployed in the organization?
* Software over deployment and regulatory implications vary
from vendor to vendor and KPMG is conversant with most of
the standard regulatory impacts
How can we assist?
KPMG has developed a phased approach to assess and
help manage organization’s software assets. The approach
is aligned with the international standards on SAM (such as
ISO 19770, ITIL SAM Best Practices) and also addresses
the regulatory software compliance norms.
The Advisory Services team of KPMG will provide a
detailed analysis of how your software assets are
managed. We will help you reduce license and
maintenance costs as well as software purchase costs,
mitigate risks on license compliance, increase overall
productivity and help your company do better overall IT
planning.
The SAM service can be expected to meet the following
objectives of an organization:
- Identify opportunities to reduce costs by reallocating /
removing under-utilized software
- Improve vendor management by structuring better
commercial terms for software assets
- Improve management practices by addressing software
asset compliance risks
Our SAM advisory services broadly comprise the following:
- Assistance in implementation of ISO 19770 standard
- Evaluation and selection of software tool for SAM implementation
- Benchmarking / alignment of SAM against Infrastructure Optimization Model
- Software License Optimization
SAM Methodology - Phases |
Initiation
Identify the benefits and define the
scope and management objectives of
SAM for the client organization. |
Analysis
Evaluate the existing SAM capabilities
of the organization and identify the
scope for implementing the SAM
processes and controls |
Implementation
Implement the processes and
controls related to SAM in line with
the scope defined by the client
management |
Continuous Improvement
Define and implement process for
evaluating operating effectiveness of
SAM processes and controls and
identify areas of improvement |
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| Potential Benefits |
Competitive Advantage |
Cost Control |
Compliance and Risk Mitigation |
- Improved Agility in deploying new
systems across the organization
- Enhances ability of an organization
to handle the IT aspects of mergers
and acquisitions
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- Managing IT Assets lifecycle
- Reduced direct & indirect costs of IT assets
- Better negotiating terms with
vendors for purchasing software
- Measuring actual software spend in
terms of ROI
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- Legal compliance by using only
licensed software applications
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For further details contact us
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