Software asset management (SAM) is often considered a necessary exercise in compliance and a means of reducing budgetary surprises in the event of an audit by a software publisher. However, a KPMG report out today, Software Asset Management: Mitigating Risk and Realizing Opportunities examines if there is much more to be gained by implementing greater sophistication in the control and management of software deployment.
KPMG firms' professionals interviewed senior IT and compliance executives from major global corporations including a bank, financial services firm, an energy and an oil company, to gain their insights into managing the software assets of an international enterprise. The insights and perspectives of software publishers are also included in the report, based on interviews with executives at Microsoft, IBM, Hewlett-Packard and others.
Peter Hynes, KPMG in Saudi Arabia's Head of IT Advisory, comments: "Many companies are finding numerous strategic benefits, such as enhanced insight into software effectiveness and closer linkage with business strategies. That is not to dismiss the barriers faced by companies who want to improve SAM including; a lack of publishers regulatory standards and the fact that many models are sold, per user, per server, per concurrent user or even by processing power. On top of that, software often lacks adequate tagging so making it difficult for companies to identify the various applications deployed."
KPMG's report, Software Asset Management: Mitigating Risk and Realizing Opportunities advances the belief that both publishers and end-users can seek common ground working together to promote and accomplish greater degrees of SAM capability.
Kirkdale Mckdowellrose, KPMG in Saudi Arabia's Senior Director in Performance & Technology services comments by saying, "Given the difficult global economic climate, end-user corporations who seize the opportunity to adopt a more pro-active approach to SAM should reap significant rewards in cost optimization, cost reduction, increased control, improvements in efficiency, and a host of longer-term strategic benefits."
KPMG believes the ability of companies to harness the power of software is becoming a key differentiator. Those companies that can do so most efficiently and effectively soonest should gain significant advantage.
The power of SAM
Improved SAM can deliver better insight into software usage and value, reduced over-or under licensing of software, more efficient software maintenance, better buying decisions and negotiating power, improved system and data security, data integrity, lower costs and greater efficiency. Other potential benefits can include a leaner greener IT footprint.
The challenge of SAM
A variety of factors have conspired to SAM being treated with suspicion or indifference by many companies. Some executives have been known to view SAM initiatives with total mistrust and view the initiatives and so-called improvements as being in the interest of the software publishers and not the end users. Another fundamental constraint is that a lack of end user resources and compliance issues can feature in this field. Indeed the view of some end users is that if non-compliance were found against the company the company would not suffer much reputational risk and therefore is it worth the effort? However, on the upside the issue of compliance and licensing is more and more being recognized as a shared responsibility.
KPMG's Software Asset Management: Mitigating Risk and Realizing Opportunities report seeks to demonstrate that SAM is not just about improving licensing compliance or the implementation of a software tool. Instead successful SAM is an introduction of a disciplined approach to understanding software needs and the ways in which software can contribute to the efficiency and effectiveness of an organization.
SAM may require cultural shifts, perhaps hardwiring the value of software to broader business objectives and future planning but overall SAM represents a more pro-active approach to the management of vital strategic asset.
KPMG's Software Asset Management: Mitigating Risk and Realizing Opportunities can be found at www.kpmg.com/SAM.
About KPMG in Saudi Arabia
KPMG Al Fozan & Al Sadhan is KPMG's member firm in the Kingdom of Saudi Arabia and part of the Middle East and South Asia region. KPMG has operated in Saudi Arabia since 1992, having offices in Riyadh, Jeddah and Al Khobar.
During the past four years KPMG in Saudi Arabia has been one of the fastest growing professional services firms in the country with international and nationally-based audit and tax clients and a rapidly growing advisory practice. KPMG in the Kingdom has recently won vast awards such as the Consultancy Firm of the Year, Best Saudi Company To Work For and a top 20 position in the Saudi Fast Growth 100 Awards.
About KPMG
KPMG is a global network of professional firms providing Audit, Tax and Advisory services. We operate in 144 countries and have 137,000 people working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International, a Swiss cooperative. Each KPMG firm is a legally distinct and separate entity and describes itself as such.
Media enquiries to:
Khalid Alkhudair
Marketing & Communications Manager
KPMG in Saudi Arabia
Tel: 00 966 5500 203300
Kalkhudair@kpmg.com
www.kpmg.com.sa
© Press Release 2010
