Gartner Research

Software Asset Management Reaches a Tipping Point: SaaS Cost Management Eclipses License Compliance

Published: 06 January 2017

ID: G00315121

Analyst(s): Stephen White , Victoria Barber

Summary

As software publishers focus on growing SaaS and subscription license revenue, the active metering and cost management of applications become inescapable needs. IT sourcing and vendor management leaders should shift the focus of software asset management practices to eliminating excess expenditures.

Table Of Contents
  • Impacts

Analysis

Impacts and Recommendations

  • Software publishers switching to SaaS are reducing audit activity, because their SaaS annuity models deliver more-reliable revenue growth, and built-in license management and access controls facilitate stronger compliance
    • Critical Success Prerequisite: Reliable Usage Data
  • The focus of the SAM discipline must shift from compliance to cost containment, as reduced customer bargaining power produces escalating prices at SaaS contract renewal
    • SAM Is a Critical Mechanism to Manage SaaS Costs
    • SAM's Role in Delivering Business Value From SaaS Adoption
  • The assignment of licenses to named users without adequate justification has become more costly, as subscription models create a recurring expense for each license, whether used or unused

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