Software Asset Management Category Overview

  • Software Asset Management (SAM) is a practice that involves managing and optimizing purchase, deployment, maintenance, utilization, and disposal of software applications within an organization 
  • This helps an organization to reduce software costs, improve compliance, and develop processes for employee software request

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SAM Market Trends

  • Increase in Adoption of Cloud Computing and Virtual Licensing 
  • With estimated cloud market size of $99 billion in 2017, enterprises need to consider the management of software assets and services for the cloud as well Increasing BYOD Market 
  • The BYOD market is estimated to grow at a CAGR of 15.20 percent between 2016 and 2021. The market was estimated to be $35 billion in 2016 and is expected to be $71.1 billion in 2021 
  • It is important for the enterprise to address BYOD strategy during SAM implementation, as it allows software license access from personal devicesIncreasing Internet and Mobile operation
  • BFSI industryis the major adopter of cloud, due to the cost and operational benefits 
  • About 60–65 percent of the BFSI industry is expected to adopt cloud computing by 2020 
  • 40–50 percent of the customers globally are using internet and mobile for BFSI related transactions. It is essential for the enterprise to plan and communicate the strategy before implementing SAM

Global SAM Market Overview

  • The market size for Software Asset Management (SAM) was approximately estimated to be $3.2 billion in 2016. It is forecasted to grow at a CAGR of 10.5 percent between 2016 and 2020 and is estimated to reach $5.2 billion by 2020
  • Supplier Scoring based on Functional and Operational Capabilities
  • Based on analysis, BMC software and ServiceNow are the best in class vendors for software Asset Management solutions. It is observed that the total cost of ownership for BMC software solution is significantly higher than that of ServiceNow

SAM–Best Practice

  • Structured SAM lifecycle 
  • Includes every aspect of acquiring IT asset, which starts from the initial request, selection, deployment, training and support services for the end-user Enables control and accountability for spending and standards 
  • SAM enables control and accountability for spending and standards through user management and approval process which thereby results in best in class practice during the procurement phase
  • Control and accountability for the retirement of IT/software assets 
  • Enables control and accountability for the retirement of IT/software assets guided by financial and physical objectives 
  • It includes planning and management of the execution of replacement/disposal of assets Third party contract for replacement/ disposal of IT assets 
  • Best practice for asset replacement and disposal is to engage with a third party in case of scrap disposal to ensure professional data clean up or disk wiping occurs and governance measures are maintained