IT Cost Reduction Ideas: Effective software asset management helps manage Microsoft software costs

Keeping abreast of movements in the technology market helps Expense Reduction Analysts to keep our clients at the forefront of IT cost reduction opportunities. Despite the flat economy, spending on software is set to rise by almost five per cent in 2010. In the latest version of the IT cost reduction ideas series, we explore how effective software asset management is a critical discipline in the organisation.

As well as being a means to achieve IT cost reductions, improved governance of software assets throughout their lifecycle enables your organisation to mitigate risk, respond more quickly to change and manage complexity within the organisation. Software asset management, and the control and protection of software assets throughout their life cycle, is a critical component to any organization’s ability to successfully manage and reduce costs in IT.

The implementation of many IT processes, including configuration, release, or change management, is dependent on the organization having accurate knowledge of its IT assets. IT cost reduction is seriously compromised when an organization does not know what software assets it has, where they are deployed, how the assets are configured and how or by whom they are used.

In recent months there have been significant changes in Microsoft’s licensing frameworks and application footprint. It is a constant source of amazement and bemusement to colleagues and clients who do not have a direct involvement in IT procurement and software asset management that Microsoft’s licensing can be so incredibly complex that Microsoft needs to have extensive professional training courses on choosing licensing options.

Licensing is part of the ‘Microsoft Certified Professional’ development programme, part of which includes designing and providing Microsoft volume licensing solutions to small and medium organisations. Companies that are confused by the variety of Microsoft products, product licenses and pricing options can take advantage of are well-advised to seek professional software asset management support.

The fact is, buying out of the box is quite straightforward. But unless your organisation is no more than just you and a few other colleagues, you need to give careful consideration to how you license your Microsoft product requirements. If you are keen to explore how your organisation can better avail itself of effective software asset management to achieve IT cost reductions, please do contact me for informal or formal advice.