Businesses must gain an understanding of their software assets, usage, licenses, and contracts so that they can reduce costs and maintain compliance.
Software procurement is often not centralised with applications being purchased at different times, by varying departments across multiple locations. Organisations often lack the in-house expertise, or tools, to fully understand what software is being used, how to manage and track the software that has been purchased, where it is being employed and by whom. This complex challenge has been further compounded due to an increasingly dispersed workforce with the shift to remote working due to the pandemic.
This lack of transparency can lead to
- Over or under provisioning of licenses
- Spiralling licensing and support costs
- A risk of non-compliance and fines due to the use of un-licensed software
- Missed opportunities of volume discounts and price breaks
- Lack of knowledge of the software ROI
- Lack of strategy of the best applications for the business
These challenges can cause serious business repercussions if not addressed in a timely manner, causing risk to reputation through non-compliance and possible security breaches, fines or loss of data.
Licensing resizing and optimisation projects using the Agreement Optimisation Framework puts IT departments back in control of the infrastructure. It allows strategic contract negotiations with a clear overview. Giving the opportunity of 20-30% cost savings once the optimisation is complete.
The Agreement Optimisation Process is built around 5 key phases: