“License costs usually make up between 15 and 25 per cent of the IT budget, so larger companies may save a lot of money.”
Fred Johnsen, PA expert in enterprise resource planning systems
In Version2, PA expert in enterprise resource planning systems Fred Johnsen talks about how companies can save a considerable amount of money by keeping a close eye on how many licenses and users they have.
As part of its focus on IT transparency, PA interviewed various companies and found that organisations can save up to 30 per cent on their license payments by undertaking a full overview of their user numbers. Fred says: “License costs usually make up between 15 and 25 per cent of the IT budget, so larger companies may save a lot of money.” He stresses that managing licenses should be done automatically: “It makes no sense to do it manually; it’s too much work and implies too many flaws. You need to find an efficient IT tool to do the work.” Fred adds that following-up is vital: “The IT department needs to make one person responsible for the entire process to make sure it doesn’t become just a one-off thing that doesn’t create the required value.” He also stresses the importance of agreeing on the contract with suppliers in order to avoid long and expensive disputes.