Software Asset Management (SAM)?

‍

Software asset management (SAM) is the structured practice of managing software licenses and applications throughout their lifecycle. It includes acquiring, deploying, tracking, maintaining, and retiring both SaaS and traditional software across the organization.

SAM helps ensure software is used effectively, legally, and in alignment with business and compliance requirements. By maintaining accurate software inventories, businesses reduce waste, avoid audits, and prevent over- or under-licensing.

It also helps identify underused applications and reclaim unused licenses for better cost savings. With a unified view, software asset management helps teams make decisions about renewals, upgrades, and vendor negotiations.

‍

Why Software Asset Management Matters?

Software Asset Management (SAM) is essential for controlling costs, reducing risks, and improving operational visibility. Without it, software expenses can grow unchecked, leading to duplicate tools, underused licenses, and surprise renewals.

‍An IT asset management system also strengthens compliance and security by ensuring all applications are properly licensed and updated. With SAM in place, enterprises can reduce risk exposure and avoid fines tied to audits or unauthorized usage.

Implementing a SAM solution also enhances operational efficiency. It automates license tracking, renewal alerts, and usage reports, freeing up IT teams from tedious manual audits. Departments can confidently deploy the tools they need, knowing they’re compliant and budgeted for.

‍

Where Software Asset Management Is Used

• IT teams rely on SAM to track software usage and ensure licensing compliance.
• Procurement uses it for contract management and vendor relationship management.
• Finance departments count on digital asset management software to keep software costs aligned with budget goals.
• Security teams depend on it to spot unauthorized or outdated software.
• Operations benefit from knowing exactly what tools are in play and how they're performing.

‍

Software Asset Management Benefits

• Maintains accurate license records to ensure you're always prepared for audits and vendor reviews.
• Reduces software costs by license harvesting and eliminating duplicate or unnecessary subscriptions.
• Enhances forecasting by giving finance and procurement better data to plan smarter software budgets.
• Automates tracking of SaaS contract renewals so no important date or obligation is ever missed.
• Delivers real-time visibility into all software assets, cloud-based and installed, across the enterprise.

‍

Software Asset Management Best Practices & Examples

• Create a centralized SAM policy to drive consistent software management
• Leverage a CMDB (Configuration Management Database) to map out your assets
• Automate renewal alerts and workflows to stay ahead of deadlines
• Monitor SaaS app usage via SSO (Single Sign-On) integrations
• Use frameworks like ITIL (Information Technology Infrastructure Library) to guide SAM processes
• Track entitlements in enterprise licensing plans like Microsoft EA (Enterprise Agreement)

‍

Software Asset Management Conclusion

Besides an IT function, SW asset management is a strategic advantage. It helps enterprises with spend and app discovery and reduces audit and security risks. You can also make informed decisions that support IT, procurement, and finance goals.

By managing software proactively, enterprises gain full control over usage, compliance, and spend. The result is greater efficiency and stronger vendor relationships. Consequently, you can make smarter investments across the software lifecycle.

Instead of reacting to renewals or audit requests, teams can strategically plan across the software lifecycle. They will be buying only what’s needed and negotiating from a position of strength. Thus, there will be various investing opportunities in tools that drive real enterprise value.

‍

Software Asset Management CTA

Request a demo to streamline your software asset management.

‍

Software Asset Management FAQs

What do you mean by software asset management?

Software Asset Management (SAM) is the process of tracking, managing, and optimizing software usage across an enterprise. It helps control costs, ensure license compliance and reduce risks. It also improves how teams buy, use, and renew their software tools.

What is the software asset management life cycle?

Software asset management life cycle includes planning, procurement, deployment, usage tracking, maintenance, and retirement. Each stage helps ensure software is acquired responsibly  and removed when no longer needed.

Which tool is used for asset management?

Enterprises can use various software asset management tools depending on their unique needs. The best strategy is to determine the needs first and then choose the tools.

‍