The Financial Numbers behind SAM: Mapping-Out a True SAM Budget
By Adam Ayer, President of License Logic
Mapping-out a budget for Software Asset Management (SAM) is an extremely sensitive
proposition. Many organizations treat SAM as a “reaction” to become software
compliant. SAM is therefore often times considered a short-term expenditure. Proving
SAM’s worth and recognizing what the organization truly needs in terms of SAM are
necessary initial steps before having a comprehensive budget discussion. Figuring out the
appropriate approach to SAM for a given organization will help immensely when
ultimately formulating budget decisions.
Collecting the Current Data
Costs for a SAM plan are always difficult to project, but with careful planning and
execution any size organization can at least make a good estimation of what the costs are
for such a project. To best prepare for any future plans, it is necessary to be fully aware of
the current environment. A full survey, coupled with an assessment of the entire network
– all hardware, software, and remote assets – will be a time consuming but eventually a
necessary step.
However, before a full survey and assessment are conducted, one should first
conduct a sample survey and assessment to have a better idea behind all the costs involved
to bring such a project to full scale. One thing to keep in mind before conducting any size
survey or assessment is the fact that one of the most time consuming components of such
a project is the collection of documentation for what is owned by the organization.
Collection of ownership records (receipts, license agreements, contracts, etc.) is extremely
difficult as documentation may be physically located at multiple offices across a region or
the world depending upon the size of the organization. A sample assessment will bring to
light how difficult the collection of such documentation which will then determine the time
and resources involved for a full scale collection.
Determining the Risks
Once an assessment has been conducted, an organization will then be able to have
a picture of their liability for any unlicensed software, and in addition be able to see areas
in which the organization has bought too many licenses. By crossing the licensed products
versus the actual environment, numbers begin to surface regarding license compliance.
Simple tables and charts can set up a visual account, bringing hypothetical shortfalls and
wasteful spending costs into light for upper management. Standard figures for software
© Copyright 2013 LicenseLogic LLC and the License Logic Institute
compliance violations can also be taken from the Copyright Law and given to upper
management. It is also at this point where any discussion of corporate liability will begin
to bear weight for any infractions of non-compliance.
Upper management will have a better understanding as to where the organization
is in terms of liability with the law and where the organization may save money by not
buying as much of one software title or buying a different type of license. Upper
management will have the appropriate information to make a decision in regards to
investing in the development of an ongoing SAM project for the organization.
Assessing the Results
Software asset management as a proactive measure of corporate policy can yield
obvious benefits for any organization, such as reclaiming unused software titles for later
use or centralizing procurement for more efficient purchasing. Even when reactive, cost
savings and risk prevention can easily outweigh any personnel, software or time
investments. Mapping out a step-by-step implementation plan will include a discussion on
cost and benefit analysis. In the overall cost analysis, however, it is necessary to weigh
every aspect of the situation. Everything from time and labor costs to software license
shortfall will weigh into the total budget figure. An ongoing SAM plan is necessary for an
organization to only buy what they need in terms of software assets and while at the same
time making sure all future software licenses are properly compliant.
Costs of SAM Tools and Resources
SAM Tools range in both functionality and costs. Before exploring any tool related
to SAM, an organization should evaluate what tools they may already have in place that
may be able to do some of the SAM functions needed for a SAM plan. One basic function
is a tool to scan the network(s) and be able to compile a list of all the software assets that
exists. Another function to look for is a database in which to store one’s entitlements. Both
of these functions are basic, but necessary for any SAM assessment.
Obviously like with any software product some SAM tools are better than others in
terms of functionality and price. Price ranges on SAM tools arrange from $0/seat for open
source or freeware software to upwards of $40+/seat for all-in-one SAM suites. The
implementation of such a tool is also a cost that needs to be considered; whether to handle
the implementation internally or with outside consultants may be a decision that needs to
be made as well.
In addition to costs related to SAM tools, an organization needs to also consider the
costs of resources such as consultants or dedicated staff to make sure that the SAM plan is
properly conducted and maintained. Roles of current employees will need to be addressed
as to their function and time allotted towards implementing and maintaining the SAM plan
for those organizations that choose to have internal employees complete the SAM plan.
© Copyright 2013 LicenseLogic LLC and the License Logic Institute
Time and any role changes to current staff will affect the bottom line and any hiring of
SAM consultants will all need to be considered for budgeting purposes.
Mapping it All Out
As no two organizations are exactly alike, no two SAM plans or their associated
costs will be alike as well. Each organization may have its own “next” steps in terms of
where to invest in first when it comes to SAM. Next steps may include becoming
compliant with all of its software non-compliant issues or implementing tools and
resources towards maintaining a SAM plan. Mapping out a SAM plan in terms of costs is
difficult, yet by doing the homework of a sample assessment and survey, an organization
may begin to be able to budget for its “next” step towards a SAM plan.
© Copyright 2013 LicenseLogic LLC and the License Logic Institute