Software

Software controls the total cost of ownership spend. Software ownership is not just about licensing compliance, but it's also about the management of software. During the initial software procurement, there are licensing fees and usages models, contract negotiation fees (for example, lawyers), and implementation. Once you license the asset, there are other considerations, such as follows, and all of them have an associated cost: upgrade and maintenance, shelf-ware, software support, and IT training.

Added to software are the typical over- or under-licensed issues, which usually account for an increased 30%, on average, but can result in a potential loss of millions. Dependent on the size and scope of the software "gap," an organization could double its unnecessary software spend by the end of year three when annual maintenance fees are accounted for. While an initial discovery could uncover these cost savings, unless it is managed with a robust software asset management program and governed by a strict procurement policy, unexpected software costs soar and become excessive.