Businesses can cut software costs by 30 per cent if they stick to software management best practices, Gartner announced on Tuesday morning.
Research director Hank Marquis said potential savings are just 'too large to ignore'. The same company says companies will spend $332 billion on it in 2016, so yes, it is a pretty big deal.
There are three best practices organisations can use to achieve these savings: optimising software configurations, recycling licenses and using software asset management (SAM) tools.
"Automated software licence optimisation is a relatively new discipline and most organisations are at lower levels of maturity," said Mr Marquis. "The variety of licence entitlements also makes it tough for IT leaders to spot savings, especially in environments with many software publishers and titles. But it's worth pursuing, as spending reductions contribute directly to the bottom line as gross profit."
The default software configuration, the one most organisations usually use, is also the most expensive, Gartner says. This is also where organisations have the best chances of cutting costs.
"Such changes appear simple in hindsight, but they are not obvious, and your savings could be in the millions of dollars," said Mr Marquis.
By recycling software licenses, organisations avoid having to buy new licenses, which is a cheaper alternative. Finally, by using SAM tools, organisations can automate, accelerate and improve manual processes of optimising complex licenses.
The full report, entitled "Cut Software Spending Safely With SAM”, can be found on this link.