Moving to the Cloud: Why do you need SAM

Ekaterina Mizrobova

The IT trend of the recent years is shifting from on-premises software to Software-as-a-Service (SAM) applications. Some enterprises opt for SaaS apps themselves, believing cloud services are simpler and cheaper; others are nudged by their software vendor shifting to the cloud themselves, as SaaS annuity models provide more stable revenue growth and “access controls facilitate stronger compliance.” However, for buyers SaaS is not only a blessing, but a challenge too, several challenges to be specific.

Before moving to the cloud, you first of all should learn what assets you have and what software your employees need to do their job. Otherwise you would be just blowing money on wasteful SaaS plans. To make informed decisions, you must know which and how many SaaS accounts and licenses you need, and what is the growth potential. This is the first reason you require Software Asset Management (SAM) system – to inventory your assets and collect consumption data.

The second reason you need SAM is to control spend on SaaS. SAM tools monitor actual SaaS costs by tracking recurring cloud software subscriptions. With the advent of the cloud, software procurement is no longer a domain of the IT. Today SaaS procurement decisions are made at the business unit level or even by employees themselves bypassing the IT. So these costs are invisible to CIOs and CFOs and must be controlled.

The third reason concerns license usage but is closely related to SaaS cost management. Indeed, they are interrelated, because proper license management eliminates excessive spend on SaaS subscriptions. To avoid license mistakes, you should continuously monitor software usage to identify orphaned subscriptions, unused and underused license, which is possible only if you have proper SaaS management software implemented.

Taking into account the aforesaid, the enterprise moving to the cloud needs both an on-premise software management tool and a SaaS management tool. However, there are solutions offering a 2-in-1 tool, such as Binadox, and helping you streamline the process of Software Asset Management in combined environment.

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