Software Asset Management (SAM): Know Its Lifecycle and Key Benefits

Managing software well is more crucial now than ever before. A study by Gartner suggests that companies could save up to 60% on wasted software expenses by using better management practices by 2026. This highlights the significance of Software Asset Management (SAM). But what does SAM really mean, and why is it so valuable to organizations?

What is Software Asset Management?

Software Asset Management (SAM) is a way for businesses to keep track of and make the most out of their software. It’s more than just a process—it’s a plan to manage software in a smart and cost-effective way. The goal is to make sure you’re using the right tools, staying within budget, and following all the licensing rules.

To put SAM into action, businesses start by creating a list of all the software they use. This includes tracking licenses, subscriptions, and how often each tool is used. From there, they set up rules for how software should be bought, installed, and retired when it’s no longer needed. Regular checks are done to make sure everything is compliant and to spot ways to save money, like canceling unused subscriptions or combining tools.

A software asset manager or team usually takes care of this. They work with IT, procurement, and other teams to make sure the software supports the company’s goals without wasting money or breaking any rules. Following these steps will help businesses stay organized, save money, and get the most out of their software.

How Software Asset Management (SAM) Fits into Business Operations

If your company runs dozens of different software tools across multiple teams. How do you ensure you’re not overspending or letting licenses go to waste? That’s where SAM comes in, helping you stay organized and efficient.

SAM works by becoming part of your daily business operations. It connects key departments like IT, procurement, and finance to manage everything related to software. Here’s how:

• IT Teams use SAM to track what software is installed, keep it updated, and ensure it’s secure and compliant.
• Procurement Teams use SAM to handle software purchases, negotiate contracts, and avoid buying duplicate tools.
• Finance Teams rely on SAM to monitor software costs, find ways to save money, and plan budgets better.

What Businesses Need SAM?

Any business that uses multiple software tools can benefit from SAM, but it’s especially important for:

• Large Companies: With so many tools and licenses, SAM helps avoid overspending and keeps everything organized.
• Tech-Focused Businesses: Companies that rely heavily on software need SAM to track and optimize usage.
• Healthcare and Finance: These industries need SAM to meet strict rules for licensing and security.
• Growing Businesses: As companies grow, SAM helps them stay in control of software spending and usage.

The Lifecycle of Software Asset Management

SAM is all about managing software through its entire lifecycle. It’s not a tool or a team—it’s a process that helps businesses stay on top of their software use, save money, and avoid problems like overspending or breaking licensing rules. Here’s what that looks like step by step:

1. Buying the Software

Before purchasing, businesses evaluate what software they actually need. This step is crucial to avoid overspending on unnecessary tools or choosing software that doesn’t align with their goals.

For example, a remote team might prioritize communication tools like Zoom or Microsoft Teams over others. They would assess factors like:

• Functionality: Does the software meet the team’s specific needs?
• Scalability: Can it grow with the business as the team expands?
• Cost: Is it within budget, and does it offer good value for the features provided?
• Integration: Can it work with other tools the business already uses?
• User-Friendliness: Is it easy for employees to adopt and use effectively?

This evaluation process often involves input from multiple departments, such as IT, finance, and the teams who will actually use the software.

2. Deployment

Once bought, the software is installed and set up on devices needed to run your operations. Proper configuration ensures everything works as planned.

Here’s how SAM supports deployment:

• Keeps Things Organized: SAM makes sure the software is only installed on approved devices and used by the right people.
• Sets It Up Right: SAM helps configure the software properly, like setting user permissions, connecting it to other tools, and customizing it to fit your team’s needs.
• Tracks Licenses: SAM keeps track of who’s using each license, so you don’t go over your limits or waste any.
• Keeps Records: SAM documents where the software is installed, making it easier to update, fix issues, or reassign licenses later.

3. Monitoring Use

SAM tools can track things like how often your team uses certain software. For instance, if your company pays for 100 licenses but only 60 employees are regularly using the software, that’s a sign you could save money by cutting back.

4. Maintenance

This stage involves keeping software updated, applying security patches, and renewing licenses when needed. It ensures you stay secure and compliant with licensing terms.

5. Retirement

When a tool is no longer useful, SAM enables businesses to remove it smoothly, cancel subscriptions, and make sure no important data is left behind.

Why is SAM Important?

The benefits of SAM go beyond saving money. It also makes managing software less stressful and simpler. Some perks include;

1. Cutting Costs

With SAM, you can spot unused software or redundant licenses and eliminate unnecessary spending. For example, a healthcare company using SAM saved over $500,000 a year by reallocating unused software licenses.

2. Avoiding Legal Issues

Non-compliance with software license rules can lead to audits, fines, or even lawsuits. SAM keeps all your software usage in line with those rules, keeping you safe from penalties.

3. Saving Time

SAM tools automate many tasks, like tracking licenses and renewing subscriptions, so IT teams have more time to focus on larger projects.

4. Better Vendor Relationships

With SAM, your company can maintain clear communication with software providers, which can lead to better deals when renewing contracts.

Using SAM Leads to Increased Efficiency

A strong Software Asset Management strategy does more than save money or avoid compliance issues; it builds clarity and control over your organization’s digital tools. When you know exactly what software you have, how it’s used, and what’s unnecessary, decision-making becomes easier and more strategic. SAM ensures your IT resources align with business goals, making growth and project pivots smoother.

To succeed with SAM, start small with an audit to identify inefficiencies and involve team leaders to uncover opportunities for improvement. It’s not about having the most advanced tools right away; even basic systems or spreadsheets can be a solid starting point. Prioritizing collaboration and building a SAM-focused mindset across departments ensures your organization stays efficient, agile, and ready for future challenges.