Software Asset Management (SAM)

Updated at: 7 October 2024

Imagine that you have become the owner of a magic wand, with the help of which it is easy to control the complete list of programs on a personal computer or on the network of an organization, company. This fantastic tool - a magic wand - exists in reality and is called Software Asset Management or Software Asset Management. Often you can meet a more familiar and widely used abbreviation SAM, which stands for the same thing.

The term was first used in 1980 in connection with the problem of illegal software copying. Organizations, companies faced the necessity of effective management of software assets - purchased software licenses to avoid violations of legislation and fines, which became the basis for SAM implementation.

What is Software Asset Management (SAM)

SAM is a process by which organizations can manage all of their software assets: from software licenses to the use and improvement of these assets. In fact, SAM is a software asset management methodology that enables an organization to effectively monitor, manage, and optimize its IT resources.

SAM may be necessary for any company that uses software to make sure: all software licenses are in order and not violated. Consider a simple example. A company purchased Microsoft Office licenses for its employees, but in the course of use discovered that the number of installations exceeded the number of licenses purchased. With an effective SAM implementation, it is not difficult to identify the problem and take action to correct it, thereby avoiding potential losses and fines.

Key components of Software Asset Management

The following basic components of Software Asset Management can be distinguished.

¨NBSP;

Accounting of all software assets of the company: this includes the list of purchased software products, their licenses, and their distribution among the company's employees.
Example: a company checks all installed software on employees' computers and makes a list to make sure that all software products are correctly licensed.

Software Inventory: involves checking and counting all installed software products on the company's computers and servers.
It is relevant when the company uses special software to scan computers and identify all installed software - this allows to make sure that no illegal software is used anywhere.

Software license management: correct registration and storage of the license for purchased software.
For example, the company maintains a license database that contains information about the number and type of purchased licenses, their expiration date, and terms of use.

Optimizing the use of software assets to avoid unnecessary expenses. For example, a company analyzes the fact of software usage and identifies programs that are not used by employees.
Subsequently, measures are taken to eliminate redundant licenses or replace programs with more suitable for the company's tasks.

Conducting audits to control software assets, compliance with license requirements. A company may invite a software expert to verify the correct licensing of software products.

## Benefits of SAM implementation The main goals and objectives of using SAM system are the following: - compliance with license requirements and prevention of fines for violation - SAM provides control over license compliance and prevents payment of fines for illegal use of software; - optimizing software costs and preventing unnecessary expenses - this can also include reducing the risk of underpayment for licenses; - Ensuring the security and resilience of computer systems through proper licensing and software updates - vulnerabilities are identified and closed in a timely manner, reducing the risk of cyberattacks; - increasing productivity, optimizing resources and software distribution process, which positively affects the quality of employees' work; - support of strategic goals by centralizing IT management, which gives a start to the company's strategic growth. It is worth considering the advantages of SAM implementation: - Reduction of expenses on licenses, software; - increased efficiency in the use of software assets; - increased security, full compliance with legislation; - improved control and productivity of software asset management; - more rational planning and forecasting of budgets; - increased productivity and competitiveness of the company; - reduction of risks directly related to copyright infringement. Such a number of advantages makes the implementation of Software Asset Management a justified step for business development and optimization of management activities. ## What companies need Software Asset Management There are companies that especially need to think about the SAM approach. These are large corporations with a large number of employees and computers, as well as organizations with a high level of software usage. Also included are companies that are focused on developing or providing IT services; organizations that deal with information or critical data. Consideration of competent management of software assets will be required when using specialized software, as well as - if the activity requires compliance with strict licensing requirements. If the company is characterized by a high level of changes in software, it is also recommended to implement Software Asset Management. The implementation algorithms are as follows: - conducting an analysis of the current state of software assets; - development of a management strategy; - implementation of the selected strategies and policies; - monitoring and auditing of software assets; - optimization of processes in accordance with the results of the audit. Software Asset Management allows organizations to manage their software more effectively, reducing costs and risks while improving security and efficiency of business processes. SAM implementation is becoming increasingly necessary for a company's success in today's world of information technology.