Introduction
Reducing wasted software spend is not hard, it just takes some time and patience.
Shunit Kainy, Head of Global IT Procurement at Teva Pharmaceuticals
The digital landscape is experiencing a paradigm shift, and with it, there is an associated growth in software and cloud expenditure. Today, organizations are allocating an increasing portion of their IT budget to software, a trend projected to continue as reliance on digital solutions grows. This expenditure, coupled with the critical role of software and cloud services in today's operations, has put software asset management at the forefront of operational efficiency. In this context, effectively managing digital assets, optimizing software investments, and developing strategies to mitigate audit risks have become essential for organizations.
In response to these emerging challenges, TechPros, in collaboration with Livingstone, engaged with prominent industry leaders from renowned organizations such as Teva Pharmaceuticals, Northern Trust Corp, Wilhelmsen Group, C.A.T. Group, JLL, CORA Romania, and Beazley. Their knowledge and experience in software and cloud expenditure management have significantly contributed to this report, offering invaluable guidance for organizations facing similar challenges.
Effective software management calls for the convergence of different departments within an organization. It's not just about IT; finance and procurement play equally critical roles.
Ashima Chopra, Head of Technology Procurement at Northern Trust Corp
The discussions with these industry leaders brought to light several key themes surrounding the complexities of software asset management. These included the approaches organizations adopt to manage their software consumption, the challenges they face in this evolving landscape, the strategies they utilize to optimize software spend, and their level of preparedness for vendor audits.
The several key themes that were discussed
A common theme that emerged from these discussions is the importance of rigorous software license and usage reviews. Shunit Kainy, Head of Global IT Procurement at Teva Pharmaceuticals, emphasized this point, stating, "Reducing wasted software spend is not hard, it just takes some time and patience." Further discussions highlighted the need for a comprehensive approach to managing software usage and spend. Many leaders stressed the importance of collaboration among finance, IT, and procurement departments. This collaborative approach allows for more effective negotiations with software vendors. Ashima Chopra, Head of Technology Procurement at Northern Trust Corp, emphasized the critical roles that different departments play in effective software management.
The cloud landscape is a complex one, and navigating it requires a blend of strategic foresight and tactical acumen.
Andrei-Raul Fuscas, IT Director/CIO/Head of Innovation at CORA Romania
Further, the complexity of software asset management and the challenges associated with it emerged as a significant theme. The difficulty of accurately forecasting costs for cloud-based solutions and the increasing importance of preparing for vendor audits were notable points of discussion. Andrei-Raul Fuscas, IT Director/CIO/Head of Innovation at CORA Romania, highlighted the complexities of navigating the cloud landscape.
The necessity for investment in Software Asset Management (SAM) services was a viewpoint echoed by 70% of our participants. This consensus indicates a recognition of the significant role that SAM plays in managing software assets, optimising costs, and preparing for vendor audits.
Finally, we would like to express our gratitude to each of the leaders interviewed for this report. Giving up their time to help provide insight and clarity for the readers of this report is a hugely generous thing to do, for which we are extremely appreciative.