Software Asset Management
What is Software Asset Management (SAM)?
Software Asset Management (SAM) refers to the process of managing, controlling, and protecting an organisation’s software assets throughout their lifecycle. SAM involves overseeing the acquisition, deployment, maintenance, usage, and eventual disposal of software. It does not typically include Hardware Asset Management (HAM), although effective SAM often requires some integration with hardware management. Together, SAM and HAM are part of the broader discipline known as IT Asset Management (ITAM).
SAM is generally more complex and demanding than hardware asset management because it encompasses licensing, compliance, legal risks, and financial management. Effective SAM processes and systems should be comprehensive and able to handle both software and hardware asset management.
The Importance of SAM
SAM is essential for several reasons:
- Corporate Governance: Proper SAM supports good corporate governance by ensuring organisations comply with software licensing agreements, protecting against legal risks, and avoiding penalties.
- Operational Continuity: Software assets are crucial to day-to-day business operations and must be managed to avoid disruptions.
- Legal and Financial Risk Mitigation: Mismanagement of software licenses can expose businesses to legal and financial liabilities. SAM ensures organisations remain compliant with licensing terms and regulations such as the UK’s Turnbull Guidance or the US’s Sarbanes-Oxley Act.
- Business Value: SAM recognises that software is a valuable business asset. Effective SAM ensures that software is used efficiently and that its value to the business is maximised.
SAM Organisation Roles
The significance of SAM is highlighted by its role in business operations. As stated by George Cox, Director General of the Institute of Directors (IoD) in the UK:
“The role and importance of externally acquired software have changed dramatically in recent years. Software licenses are now business assets, and without them, businesses are exposed to legal and financial risks.”
For a successful SAM program, it is crucial for senior management to drive the vision and strategy, ensuring that the entire organisation understands its importance. A clear business case for SAM should be developed, aligned with overarching IT strategies, such as Configuration Management, and supported by well-defined policies and responsibilities.
SAM Processes and Systems
To implement SAM effectively, it is essential to have accurate and up-to-date information stored in SAM databases. These databases, often part of a Configuration Management Database (CMDB) in the ITIL framework, play a crucial role in SAM processes. SAM databases must be regularly updated with information from the live IT infrastructure to maintain accuracy and ensure proper control over software assets.
- Secure Asset Discovery and Dependency Mapping (SDDM) is a key part of SAM. It ensures that all software assets and their dependencies are identified and documented, providing a complete view of the software environment.
- Ongoing Management: Once implemented, SAM processes must be continuously maintained and reviewed for compliance, improvement opportunities, and changes in organisational or market conditions.
Benefits of SAM
An effective SAM program leads to several benefits, including:
- Compliance: Ensures software licensing and legal obligations are met.
- Cost Savings: Prevents overspending on unnecessary licenses and optimises the use of software resources.
- Risk Reduction: Reduces the risk of audits, fines, and legal issues.
- Operational Efficiency: Enhances control over software use, ensuring that only authorised software is deployed and used across the organisation.
In summary, SAM is a critical component of IT asset management that enables organisations to manage their software assets effectively, mitigate risks, and align software investments with business needs. The key to SAM’s success is maintaining accurate data, supported by strong processes, governance, and senior management leadership.