Wavestone The IT Leader’s Recession Playbook

FIVE CRITICAL LEVERS TO REDUCE COST AND COMPLEXITY

Software asset management Most of the cost avoidance in software asset management (SAM) can be achieved via processes that don’t require a capital investment. And the savings can be huge for companies that haven’t implemented any kind of SAM program before.1 Also, software companies might be planning to increase license audits as their revenue from sales is impacted. A good SAM program helps to avoid paying potentially large fines and increasing the likelihood of more vendor license audits, which are costly to perform. Are you overengineering your solutions and licenses? For instance, did you buy Office 365 E5 licenses when you could use E3 with a security add-on for half the price? / Look into implementing a SaaS management platform (SMP). This is an emerging IT management practice designed to centralize and holistically manage most, or all, of a company’s SaaS products. The SMP space is trending to grow at 20% annually due to organizations shifting from on-premise software to SaaS solutions. This solution can tell you actual utilization of SaaS software in real time. With this information, you can remove underutilized applications altogether or decrease licenses. / Use software rationalization to remove duplicate or unused systems. Things to think about: / Vendor management There are two areas where the vendor management office plays a critical role in capitalizing on cost saving. a) Building and applying a formal supplier governance model Supplier governance focuses on existing contracts and applies a standard set of processes to ensure suppliers are meeting SLAs and preventing further value leakage from the original contract. This governance is applied to the top 20% of suppliers, where these suppliers have the largest impact on the enterprise.

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1 “Executive Viewpoint on Software Asset Management: Time for a Reset”. IDG and Deloitte. https://www2.deloitte.com/content/dam/Deloitte/us/Documents/risk/us-rfa-deloitte-asset- management-time-for-reset.pdf

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