Sunday 27 September 2020

5 Tips for finding software and SaaS savings

 

IT leaders are looking for ways to reduce spending to deal with the economic impact of the current pandemic. software costs, including SaaS, often represents as much as a quarter of the IT budget. While long-term contracts with major software vendors can make it difficult to unlock savings, there are some tips that can help to quickly save on software and SaaS while also improving your efficiency for the long term.

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How much can I save?

On average, organizations waste about 30 percent of them spend the software. By optimizing the software license position and the use of SaaS, you can realize hard savings by avoiding the purchase or renew a license is not required.

 

5 Tips for finding software and SaaS savings

Tip 1: Start with large, the software updates that will come or renegotiation

With many software, spending is locked in a long-term contract, your initial focus may be on renewing contracts in the next 12 months. However, you do not have to wait for the update to request renegotiation with vendors. In preparation for the second scenario, it is important to start by fully optimizing the use of licenses you've purchased. It allows you to enter a renewal negotiations in the strongest position possible. There are some areas you may be able to optimize the use of your license, depending on the rules of the license of a particular software vendor and your internal policies. Examples include:

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Identify users with no activity and license retirement

Identify users who may move to lower levels of license

Client software identifies unused for deletion

Take advantage of all the secondary use rights

Consolidated VMS to install products to one or a set of selected clusters and / or hosted VM

leverage a secondary use rights for the cloud, such as Azure Hybrid Benefits

Customize your virtual server specification or consolidation to a shared pool

Customize access through application virtualization solutions (Citrix, XenApp) to optimize license consumption

Identify large surplus licenses for products due for renewal

Eliminates unauthorized software installation (not supported, not approved, the risk is known)

Tip 2: Find software that runs on a zombie and server unemployed

In the data center, you may find the software that runs on a zombie or idle servers. This is a server that is running but is not used at all or hardly used. Software running on this server consuming software licenses. By eliminating the zombie servers and eliminating or downsizing idle server, you can reclaim software licenses and also reduce maintenance costs for the server.

 


Flexera analyzed data from 773 organizations and found that on average, 23 percent of the servers that zombie or idle. In an organization with 5000 server, saving an average of $ 1.5 million, not including software licenses.

 

Find the zombies and idle server requires an analysis of infrastructure utilization (CPU, memory, storage, bandwidth) over a period of time. It's important to monitor this server over a month or longer to uncover the peak demand that may occur on a weekly, monthly or even every three months. Once you find this server, you can take appropriate action, including revocation of access to software, rightsizing or decommissioning servers.

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Tip 3: Look for SaaS underused

SaaS applications can be purchased under contracts ranging from by-the-month for three years or more. The SaaS application you are likely under one or three-year contract, so focus on those who are up for renewal in the next 12 months. While SaaS application itself can show how many users have been authorized, it will not tell you how much they have been using the app over the last few weeks or months. In cases where there are multiple levels of user licenses for different levels of ability, SaaS applications will not tell you that the ability of users actually uses. Some common areas for waste include:

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Employees who have left the company

Contractors who no longer need access

Employees who have changed jobs within the organization and no longer have access

Users who are not logged in last month

Users who are logged rare

Users who do not take advantage of all the capability for the user level and can be lowered to a lower level

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You can take advantage of SaaS management tools to reveal the level of usage data, as shown below, and find opportunities to deprovision users. You can use automated policies to reclaim unused licenses or underused. Keep in mind that some SaaS vendors have a contract provision that prevents you from reducing the size of the contract extension. You may need to push back during the negotiations to eliminate the clause.

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