Sponsored By:
Produced By:
Andrei-Raul Fuscas
CIO and Head of Innovation
Battling the Tech Vendors: Optimizing License Spend and Avoiding Audit Risk
What do you believe are the primary factors contributing to wasted software expenditure?
In my experience, one of the main factors leading to wasted software is the complexity of the architecture and the limited resources available for consultancy. When organizations have large, stable solutions from major vendors like IBM, Oracle, and Microsoft in place, making changes becomes a daunting task. This complexity and scarcity of resources often result in prolonged implementation times, leading to unused or underutilized software.
Could you elaborate on how these challenges impact the ability to make changes and maintain software productivity?
Absolutely. The high complexity of solutions and limited resources mean that implementing changes takes a considerable amount of time. In some cases, we had to wait for months to implement even minor modifications. This delay affects the agility and responsiveness of organizations in adapting to market needs. Additionally, without proper maintenance and regular updates, software can become non-productive over time, leading to wasted resources and lost opportunities for innovation.
One of the main factors leading to wasted software is the complexity of the architecture and the limited resources available for consultancy.
In light of these challenges, what steps can organizations take to address wasted software and ensure productive software utilization?
One crucial step is conducting a comprehensive total cost of ownership analysis for each solution. When organizations consider moving in a new direction, they should compare the implementation of market solutions that offer the required functionality with the option of developing existing software. This comparison helps in assessing the potential costs and benefits of each approach. Additionally, organizations should prioritize proper maintenance and periodic evaluation of software to avoid its depreciation and non-productive state.
Shifting our focus slightly, how do you forecast software consumption and mitigate against unforeseen costs, especially with the increasing adoption of cloud infrastructure and platform services?
Forecasting software consumption and managing costs require a holistic approach. We closely monitor data trends and align them with business objectives to anticipate and control our annual spend. In terms of cloud adoption, we pay attention to the natural evolution of our business and factor in the migration to the cloud. By including a contingency, such as 20%, and considering the magnitude of lows and highs, we can predict and avoid significant cost surprises. This approach allows for better budgeting and resource allocation to ensure efficient software consumption.
Without proper maintenance and regular updates, software can become non-productive over time.
Transparency and collaboration are key components of successful vendor relationships. In your experience, what makes a good collaboration with a vendor?
Transparency is indeed crucial for a successful collaboration with vendors. It is important to clearly communicate our capabilities, limitations, and the scope of the solution from the outset. This prevents misunderstandings and unfulfilled promises. Additionally, a good vendor relationship involves understanding their capabilities and limitations, allowing both parties to work together creatively and adapt to changing needs. On the other hand, a challenging partnership can arise when there is a lack of transparency or when expectations are not aligned. It's important to establish clear communication channels and foster a collaborative mindset to overcome such challenges.
The relationship between Software Asset Management (SAM) and procurement is vital for effective software management. How would you describe the ideal relationship between these two functions?
Both functions need to work closely together to ensure effective software management, cost optimization, and compliance. SAM can provide valuable insights into the organization's software needs, usage patterns, and licensing requirements, which can inform procurement decisions. By aligning their efforts, SAM and procurement can achieve better control over software assets, optimize costs by eliminating redundancies or leveraging volume discounts, and mitigate risks associated with non-compliance or unauthorized software usage.
When dealing with major vendors like Microsoft, Oracle, IBM, and SAP, compared to smaller investments, what approach do you take to ensure successful collaborations?
The main difference lies in governance and sponsorship. With major vendors, we typically involve key stakeholders, such as the CFO and CEO, from the early stages of discussions. Their engagement and support are crucial in influencing the decision-making process. With smaller vendors, we can be more open and transparent about our needs, and they are usually more flexible in accommodating them. Overall, effective communication and alignment of objectives remain important regardless of the vendor's size.
A challenging partnership can arise when there is a lack of transparency or when expectations are not aligned.