After exhausting all of the standard cost removal tactics, Alsbridge has see our clients turning to cost reductions by focusing on hardware and software spend. Effective IT Asset Management (ITAM) is the critical enabler for this approach.
According to Alsbridge research, hardware and software typically represent 25% to 35% of IT spend, not including labor associated with managing the assets. Reductions on hardware and software assets spend can be achieved from implementing effective ITAM and software license management capabilities.
“With effective ITAM, an organization can avoid buying hardware and software they don’t need, stop paying for maintenance and lease costs on equipment they no longer have and make better purchasing decisions,” explains Ben Trowbridge, CEO, Alsbridge, Inc. “Effective ITAM also reduces risk. Knowing how many PCs you have provides visibility to security issues. Likewise, knowing your software compliance position can help mitigate unforeseen true-up costs and defuse software audits altogether.”
Effective ITAM will benefit any IT organization by providing the necessary information about the organization to make strategic IT decisions as well as reduce IT cost through reducing IT spend. For an outsourcing client, ITAM holds specific requirements and benefit to the outsourced environment. Each phase of the outsourcing lifecycle, from Strategy to Sourcing to Operate, is dependent on different aspects of ITAM to help enable the value of the deal.
At a minimum, the Strategy phase requires an asset count for the outsourcing business case; for deals with asset transfers, more detail is needed for the inventory.
During the Sourcing phase the current state of the client’s ITAM position should be conducted to outline a pragmatic transition vs. transformation plan. During Service Transition execution, the initial asset inventory is established enabling the delivery of service as well as forming the foundation for effective ITAM; data elements required for monitoring the services and SLAs are defined and agreed.
During Operate, by managing the asset inventory, the client can effectively monitor the services Provider’s delivery and have clarity on provider invoicing. In addition transformation projects may be implemented to improve the overall value ITAM can deliver to the client.
Download the full report, “Achieve More, Spend Less with IT Asset Management,” and learn how your organization can achieve more and reduce costs using IT asset management.