Businesses in the U.S. aren’t the only ones suffering, according to a new study, less than half of UK businesses believe their software is correctly licensed. An overwhelming 71% of those businesses admitted to having licensing problems in the past. A further look at the respondents showed that 26% were over-licensed, 12% were under-licensed and the remaining 13% were unaware. The study asked over 100 IT directors in the UK about their software licensing. The results are quite eye-opening and similar to the experiences we are having here in the U.S. So many organizations recognize the risk of non-compliance and the realities of increased spending for over or under licensing, yet they continue to put a software asset management (SAM) program to the wayside. Here are some more interesting findings from the survey:
37% have experienced over-expenditure by paying for more licensing than they use
29% have experienced downtime as a result of too few licenses
11% don’t monitor licensing at all and 31% don’t monitor licensing renewals
Software Asset Management is an important aspect of business operations, but some management teams are apprehensive about making a change either because they fear unexpected costs from implementation or the inability to understand that SAM will save them money over time.
The three main business drivers for SAM (for those of you who need some convincing) are:
Cost Control:Unless you know where and how your software assets are deployed, you cannot use them optimally. Software assets are called “assets” for a reason, because they cost money! Why make a significant investment in enterprise software if less than 60% is utilized properly? Enterprise software is an expensive line item, often in the millions.
Annual Planning: Poor planning can cost money all around, especially with software. Without proper tracking and understanding of software assets, you can’t properly plan for the year ahead. This often leads to over or under licensing, which can disrupt any IT budget in a big way mid-year!
Regulation: Whether it is SOX compliance or just plain vendor compliance, if you don’t know your assets inside and out what do you wanna bet you aren’t compliant? There is a big chance, vendors licensing terms are tricky - and cost big bucks if you are out of compliance! It can even lead to jail time..
You can’t control what you don’t know, I say this all the time. In order to save the most money and prevent unexpected costs - you need control. Software asset management is not a “nice to have” it’s a “need to have” for any organization or any size.
We’ve been included in some great articles in the media lately. Not that the articles are great because we’re in them, but because the articles are worth the read (with or without our commentary). They are very helpful pieces about licensing, virtualization and of course audits that are a good read! Enjoy!
At a recent event in London, Steve Ballmer was asked about Microsoft’s complex licensing policies to which he acknowledged that yes, Microsoft licensing isn’t simple, never has been and probably never will be. So, is there a chance for changes in the near future? Nope, of course not! Ballmer even bolded stated that it just isn’t going to happen.
So, here’s our advice to combat this.
Start paying attention to the fine print. Look at your terms and conditions.
Be smart and don’t give any information away to Microsoft until you understand what you have and where you have gaps.
Review your business needs and align with your software solutions.
Ensure that there is an annual internal audit of all your software licensing.
Put in a good software asset management program – from creation of policies to procedures to an official procurement office.
Be proactive. Don’t wait until Microsoft’s growing licensing policies catch up to you. Remember, Microsoft and the ever present, ever watchful BSA is watching you.
One of the most complicated aspects of negotiating a software licensing contract is when an organization has no precedent to follow. Perhaps they are purchasing volume licensing for the first time, or working with a new vendor, but when there is nothing to go by, the process is all that more complicated. To add to this, vendors have non-disclosure agreements, preventing customers from discussing pricing with others. Therefore, you won’t find out about pricing until you are actually seated at the table with the vendor - on the hot seat. Pricing benchmarks are important to the negotiation process, to make sure you are getting the best deal. In addition to price, if this is a first of any kind, you want to know that you are buying something that will fit your company today and 2 years from now.
Get help. Consultants negotiate contracts every day, they know what the vendor has to offer, what the discounts should be, how to work a contract to accommodate your company’s growth … I can keep going here! It’s not shameful to ask for help - it will save you money in the long run.
Businesses in the U.S. aren’t the only ones suffering, according to a new study, less than half of UK businesses believe their software is correctly licensed. An overwhelming 71% of those businesses admitted to having licensing problems in the past. A further look at the respondents showed that 26% were over-licensed, 12% were under-licensed and the remaining 13% were unaware. The study asked over 100 IT directors in the UK about their software licensing. The results are quite eye-opening and similar to the experiences we are having here in the U.S. So many organizations recognize the risk of non-compliance and the realities of increased spending for over or under licensing, yet they continue to put a software asset management (SAM) program to the wayside. Here are some more interesting findings from the survey:
