At the end of 2012, Forrester and the ITAM Review, an IT asset management community site, ran a software asset management (SAM) survey to help understand where SAM is going in 2013. The resulting infographic* and commentary is available to Forrester clients here. For non- (hopefully future-) clients I’ve extracted some content to create this blog.
The focus and drivers for SAM have changed
Since the early 2000s, risk-focused IT professionals have voiced their concern over software compliance and the potential for vendor audits, large financial fines, damage to corporate reputation, and even the imprisonment of company directors. But these concerns weren't necessarily shared by the rest of the organization, which also viewed the SAM technology available as too difficult and complex to justify. As a result, SAM was a low priority on the IT management to-do list.
But this is starting to change as IT organizations realize that their software estates and procurement and provisioning processes are in a state of under-management, if not mismanagement. As a result, these organizations are wasting a significant amount of their IT funding each year on license procurement when they don't need to, maintenance agreement costs for more licenses than they actually use, and supporting and hosting software that should have been decommissioned.
A little while back Martin Thompson at the ITSM Review wrote an interesting blog on the complexity of IT service management (ITSM) tool pricing: http://www.theitsmreview.com/2011/09/ouch-o-meter/…I particularly liked his term "ouch-o-meter." It’s well worth a read.
It's something that has continued to puzzle me – what it would cost to buy AND implement an ITSM tool, PLUS any process or people-based change via professional services or third-party consultancy? Oops, I nearly forgot support and maintenance there too. To make matters worse, this is potentially an unknown and unbudgeted for cost that appears every 5-7years due to tool churn if us analyst types are to be believed (I have an outstanding action to include ITSM tool churn-related questions in a survey). But we need to park the churn issue for now and focus on cost or, more specifically, pricing models.
What did an ITSM tool cost in 2008? Or how long is a piece of string?
I cast my mind back to when I started as an industry analyst in 2008 and the complexity of not only which tools/applications, modules, or features needed to be costed-in but also the 30-50% "surcharge" for the professional services and 20-22% for support and maintenance. Then of course we needed to apply volume-based discounts and maybe something else based on the "customer-logo-appeal," the customer’s sourcing and vendor management strength/capabilities, and/or the sales person's need to hit quota at that point in time. I've probably oversimplified this too, feel free to educate me.