News
Version 1 Warns of Increased Incidence of Software Audits in the Irish Marketplace
13 November 2008
IT Consulting and Services company Version 1 has warned that the incidence of Software Audits in the Irish marketplace has increased and believe that this is only the beginning as the economy begins to head into a more difficult phase.
CREDIT CRUNCH WILL LEAD TO AN INCREASE IN THE NUMBER OF AUDITS
ANY COMPANY BEING AUDITED SHOULD SEEK THIRD-PARTY ADVICE
AUDIT RESULTS ARE NOT ALWAYS A 'FAIT ACCOMPLI'
DON'T BE 'CONFUSED INTO SUBMISSION'
A VENDOR AUDIT CAN BE A GOOD OPPORTUNITY TO GET YOUR HOUSE IN ORDER AND CONSIDER AN ONGOING SOFTWARE ASSET MANAGEMENT PROGRAM
International trends would suggest that Ireland is only following suit with the rest of the global software industry. As the credit crunch begins to bite, and new projects are cancelled or put on hold, software vendors are looking for ways to protect their revenue streams, as recent industry reports have testified (Credit Crunch Drives Software Audits – Computer Weekly, Aug 2008).
According to Derek Alexander, Software Asset Management Consultant at Version 1, companies need to be more proactive at managing their usage of software packages provided by large software vendors. “Many IT managers are unaware of what exactly is in use in their organisations, and also how it is in use. It is an increasingly daunting task just keeping up with the changes to software licensing terms and conditions, and it can be difficult to know where you stand – you can be confused into submission during the audit process.”
Taking action to understand your software licensing position before the inevitable audit letter arrives could save you tens of thousands of Euro in unplanned spending and decreased productivity. It can also help to ensure that you don’t buy licenses that you don’t actually need, make you are aware of the value of your investment in software licensing, and may also uncover opportunities to save money on annual support costs.
He goes on to say that when the licence compliance teams from software vendors come calling they tend to give little notice and can take an inflexible line on any additional licensing that is required. “Neither are they obliged to show you the most cost effective way to become compliant.” Impartial advice on your options at this stage can be invaluable.
Once a company understands its current usage and any issues that have been uncovered, it can then begin to actively manage its software assets, either in-house or by outsourcing it as part of a managed service.
Organisations can expect to realise savings of up to 30% a year on software licensing, according to Alexander. 'Numerous reports and analysis have shown that an effective Software Asset Management (SAM) program will allow you to budget more effectively and prepare you for vendor audits, mitigating legal and financial risks. It can also help you reduce internal support costs', he added.
Version 1 has a strong track record in this area, and has already helped numerous companies in all sectors save money on software licensing:
Retail Company - €40k saving
Media Company – €250k saving
Insurance Company - €220k saving
Financial Services Company - €200k saving
Public Sector - €120k saving
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