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Five Strategies for Tackling Licence Overspend

Tackling Licence OverspendLike every area of business, IT is always about balancing outcomes against costs. From your applications to your network hardware, every expense needs to be justifiable and deliver real value to the business. But that’s harder to achieve than it sounds.

As estates grow, it’s increasingly difficult to maintain visibility and control. As a result, waste and overspending are commonplace – particularly when it comes to software licences. In an attempt to avoid the risk and expense of a software true-up, businesses are overspending on a global scale.

Here are five ways you can keep your licence spending under control and reduce your spend without increasing your risk.

1. Free-up the software you already have

In an attempt to avoid licence non-compliance, it’s remarkably common for businesses to find they have more licences than they actually need. However, without strong reporting at a central point of control, it’s often easier to double-dip than it is to check for spare licences and re-allocate them.

Software Asset Management (SAM) tools can help, but these are often completely separate from the procurement process, not integrated tools for the entire lifecycle.

2. Plan ahead and predict upcoming demand

With a short-term view of your software, there’s a tendency to make snap judgements. The only information you have is here and now – but you could be missing crucial factors that may influence your decision.

AstuteLDM allows you to forecast future demand for software, so you can plan effectively for the next fiscal year or quarter end – a more strategic approach to procurement that keeps costs controlled.

3. Consolidate your software procurement

We all know about economies of scale, but few businesses apply the idea to their software. In a world where you need hundreds or even thousands of deployments – and where you need multiple applications from a single vendor – it’s a frustratingly wasted opportunity.

If you consolidate all your software in the same workflow, you can build a clearer picture of what you have and what you need to buy. That gives you more buying power to negotiate the best possible deal from your vendor.

4. Combine renewals and new software

Consolidating your procurement isn’t the only way to maximise your buying power. We all spend money on licence renewals, but few of us align those purchases with new software.

With a clear view of the software and licences you have, what you currently need to procure, and your future demand and renewals, you can make sure that you’re getting everything you need at once, not piecemeal.

5. Control costs by controlling risk

Finally, it’s important to remember that procurement isn’t the only cost associated with your software. In order to reduce your spend, you need to effectively get out in front of your risk – not playing catch-up with traditional SAM tools, but eliminating risk at the time of purchase.

Creating a centralised workflow for software procurement, AstuteLDM prevents risk before it even enters your network. As a result, you can stop playing catch-up at great expense – and dramatically decrease your overall software spend.

Find out more about AstuteLDM