This document discusses software asset management (SAM) and the need to transform SAM into software license optimization (SLO). It notes that only 30% of enterprise spending is managed by procurement and 75% of cloud acquisitions are untracked. The document outlines a path to SLO maturity from basic to standardized to rationalized to dynamic. It states that embedding SLO into IT processes including workforce enablement, SaaS application adoption, hybrid cloud management and strategic vendor management can accelerate maturity by 3-4 times.

30. BASIC STANDARDIZED RATIONALIZED DYNAMIC
18 – 24
Months
18 – 24
Months
18 – 24
Months
ValueofSAM
Time (Years)
2 4 6
The SAM Optimization Model, © Microsoft Corporation
Software Asset Management: Mitigating Risk and Realizing Opportunities, 2009
8
of spend is under
management by
Procurement
(CPO Agenda, 2015)
Only
60%
30%
Cost reductions by
enterprises that
implement software
asset management
during the 1st year
Gartner: Using IT Asset
Management to Ensure
Software Compliance
2015)
of cloud acquisition
will be unapproved
and untracked in 2017
(Gartner: CIO Agenda
2016)
75%
Additional cost due to
software licensing
complexity
25%
(IDC Software Licensing and
Pricing Predictions 2016)

31. Quickest Route to
Maturity
Market Leading
Sophistication
Optimization &
Ongoing Support
Basic
18 – 24
Months
ValueofSAM
Standar-
dized
Ration-
alized
Dynamic
3x to 4x Faster!

41. 41© 2017 FORRESTER. REPRODUCTION PROHIBITED.
First, SAM became software license optimization (SLO)
Firefighting
• Manual record
keeping
• One-off self
audits
Management
• Deployment-
based
discovery
• Reactive
procurement
Optimization
• Focus on
liabilities, not
assets
• Central
guidance &
monitoring

42. 42© 2017 FORRESTER. REPRODUCTION PROHIBITED.
Now many tech trends are driving SLO transformation
SLO
Internet of
Things
Cloud &
SaaS
Mobile
generation
Cyber-
security
threats
Audit
extortion

43. 43© 2017 FORRESTER. REPRODUCTION PROHIBITED.
SLO must become embedded in IT processes
Firefighting
Management
Optimization
Embedded
• Workforce enablement
• SaaS Application adoption
• Hybrid cloud management
• Strategic vendor management

44. 44© 2017 FORRESTER. REPRODUCTION PROHIBITED.
Embed license management within IT operations
› Workforce enablement
• Provide the tools they need or they’ll self-source
› SaaS Application adoption
• Low usage is a warning sign, either fix it or reduce the contract
› Hybrid cloud management
• Licenses are merely one constraint to consider
› Strategic vendor management
• Elevate the discussions above what ‘access’ and ‘installed’ mean