Software Asset Management (SAM) is the administration of processes, policies, and procedures that support the procurement, deployment, use, maintenance, and disposal of software applications within an organization. It is a part of IT asset management that ensures an organization complies with license agreements and does not overspend on software.
Software Asset Management (SAM) plays a crucial role in managing all software, both virtual and non-virtual, throughout the software lifecycle. SAM offers numerous benefits, such as cost and time savings, improved vendor relationship management, simplified audits, and control over cloud software usage. SAM teams in large organizations are responsible for creating and maintaining a database that stores information about software purchases, subscriptions, licenses, and patches. They also handle renewing software licenses, negotiating new license agreements, and identifying and eliminating rarely or never used software.
As for future trends in SAM, systems are increasingly being hosted in the cloud, allowing for more efficient management and information gathering. SAM is also moving toward more automated systems on a single platform that accounts for information like terms and conditions, software costs, configurations, and usage. This helps improve overall IT operations by providing a complete overview of an organization's software needs and current use, which can help tailor and negotiate software licensing. It also frees up individual time for more complex tasks through automation and provides transparency for which cloud software products are being used by the organization, and on which devices.
Software Asset Management (SAM) can play a role in market segmentation by providing valuable insights into an organization's software usage patterns. By analyzing the data collected through SAM, businesses can identify trends and preferences among different user groups, which can then be used to target specific market segments more effectively. For example:
Software Asset Management (SAM) is an essential component of business planning, as it helps organizations maintain compliance with license agreements, prevent overspending on software, and optimize software usage.
Software Asset Management (SAM), Total Addressable Market (TAM), and Share of Market (SOM) are three distinct concepts that can be compared to better understand their roles in business planning and strategy.
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