Gartner suggests license optimization practices to cut software cost by 30%

Application configuration optimization, recycling software licenses and Software Asset Management (SAM) can help organisations to cut their software expenses by 30%

Organizations can cut spending on software by as much as 30% by implementing three software license optimization best practices, suggested by Gartner. The keys to reducing software license spending, as per Gartner are:

  • Application configuration optimization
  • Recycling software licenses
  • Software Asset Management (SAM) tools

Gartner reported that organizations with mature software license optimization processes that were automated using SAM tools reported reducing software expenses, on average, by 30% within the tools' first year of operation.
According to Gartner, organizations can cut software spending using the following three best practices:
1) Optimize Software Configurations - Software from large publishers has complex user rights and is costly. The default configuration for most software is normally the most expensive for clients as well. This blend of complexity and high cost offers best chances to cut spending. IT leaders must look for savings in the configuration of software, especially data center software.
2) Recycle Software Licenses - Recycling software licenses is the recovery of unused license rights for reuse to avoid new license purchases. License recycling will reduce software spending as well as support and maintenance costs. Recycling requires strong process control. However, with many IT organizations at low maturity levels, most could cut their software spending by maturing their recycling and license optimization processes and building them into their daily IT operational activities. Recycling requires metering to spot unused, underused or misused software. For example, a user may have a piece of software installed but never actually use it — or perhaps the user only require a viewer. SAM tools, and some client management tools, can provide this functionality.
3) Use SAM Tools - It is hard to optimize software spending because licenses are so complex. Optimizing complex licenses manually is labor-intensive; it requires specialized knowledge and does not scale. Larger enterprises will need a SAM tool. SAM tool can automate, accelerate and improve manual processes. It can pay dividends over manual alternatives, and can often pay for itself.


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