According to global research from Gartner, most organizations are probably overspending on software licenses by about 30%. The problem is, almost nobody realizes it. They have no frame of reference to understand how much they should be spending, and no way of knowing what their employees are actually using. The bigger the organization, the worse the disconnect.
As cloud services become more and more ubiquitous, employees across departments from finance to development to sales and marketing are making use of SaaS technologies to help them do their jobs. When organizations implement these services, it’s with an eye on how much more efficient their employees, departments and enterprises could become, and how much money could be saved as a byproduct of all thatefficiency. But here’s what really happens:
Let’s say a small department in an enterprise organization is made up of two teams. Team A does its research and decides to invest in project management software A. It has 31 team members, so it decides on the license that allows for 50 users … just in case of growth. Team B only has 14 team members, so its due diligence shows it’s a better bet to choose project management software B – after all, software B has a smaller license that allows for just 15 users. But team B could have been using the remaining users in software A, without bothering team A or incurring any additional charges for the organization. And then, to make matters worse, team B hires two new employees … and without realizing it, starts getting hit with monthly overage fees from software B. So they increase their allotted users to 30, the next level of contract for software B. All of a sudden, one department is paying more than double what it needs to for two cloud services with the same project management functionality. But the teams are happy with the services, and the employees are used to using them, so nobody realizes anything is wrong. Then both contracts auto-renew, and the problem continues …
Think about how often this could be happening in your organization, and at what scope. DocuSign. SalesForce. Marketo. Adobe Creative Cloud. New Relic. Office 365. Slack. GoTo Meeting.
The number of SaaS services employed by most large technology organizations is staggering. The overlap is hidden and the cost implications are massive. So what can you do about it?
Hank Marquis, Research Director at Gartner, said that while achieving software savings is a complex exercise, the potential savings are too large to ignore.
“Automated software license optimization is a relatively new discipline and most organizations are at lower levels of maturity, said Mr. Marquis. “The variety of license entitlements also makes it tough for IT leaders to spot savings, especially in environments with many software publishers and titles. But it’s worth pursuing, as spending reductions contribute directly to the bottom line as gross profit.”
That’s why Applogie offers software license management that helps you manage more than infrastructure. Here’s how it works:
Applogie discovers all the cloud subscriptions hiding in your ERP, then shows them to you – plus their associated real-time usage data – in one easy-to-manage dashboard. Users across departments can share comments, insights and documentation on that dashboard, increasing visibility into how your organization uses the cloud. You can optimize your subscriptions by monitoring real-time usage against contracted limits and constraints, find out if you’re paying for more than you need, or if you’re overlooking overlapping subscription capabilities.
Applogie doesn’t tell you what to do or choose software licenses for you. We give you the tools to make those decisions on your own. Want to cancel a subscription? Reallocate your licenses? Renegotiate a large contract? That’s up to you. We provide the insight into your organization’s cloud usage, so you can get your money’s worth.
Want to see it in action? Request a free demo today.
Want to see how much you could be saving? Request a personalized audit today.