In an article in Computerworld, PA’s Fred Johnsen, enterprise resource planning expert, explains how companies can lower their cost base by making better use of the right tools and processes when managing their IT licenses.
Fred says, “An increasing number of companies have adopted better tools to manage their IT licenses, but only a few have established a governance structure, eg processes, defined roles and responsibilities, for the purchase, renewal or re-usage of IT licenses.”
Fred refers to research by PA Consulting Group that suggests that companies can save up to 30 per cent of costs related to software licenses by using the right set of tools and processes.
Fred explains how companies should manage costs related to IT licenses. He suggests that companies implement carefully selected IT tools to help manage the company’s licenses. In addition, processes and areas of responsibility should be defined in order to maintain a positive effect. He also writes that companies need to maintain a strong commercial focus by identifying quick wins and by establishing an overall business case. Finally, the business needs to nominate the right people to spot which licenses are actually needed and to devise the best strategy for negotiating with suppliers.
“Following this simple advice, a company may save up to 30 per cent on license-related costs and, at the same time, reduce the risk of bad publicity caused by lack of compliance.”
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