It might feel like the demand on IT departments to cut expenses is never-ending, and if you’re a manager entrusted with cutting costs while enhancing productivity, you know it’s not an easy assignment.
In recent years, software firms have shifted from a sales model (where software is owned outright) to a licensing model (where software is licensed on a long-term payment basis). Such licenses can quickly build up to a significant and possibly permanent expense, putting extra strain on an already limited IT budget.
Why is it that licensing is so often overlooked? Perhaps it’s because certain suppliers’ license requirements and cost structures are so complicated that they’re difficult to comprehend. Perhaps it has something to do with the length of licensing terms: after three or four years, fees aren’t as important as they were when the license was purchased. Or, tragically, it might be that individuals have become accustomed to the agony of paying large license costs and have accepted them as a necessary cost of doing business.
It’s time to put an end to the suffering.
Examine these effective methods for lowering software license expenses while increasing the value and efficiency of your software system.
1. Carry out a thorough software audit
Not surprisingly, the first step in reducing the cost of licensing your software is to conduct a thorough and detailed audit. In addition to evaluating and understanding the software currently used by your department or business, you will also know exactly which software is important to your business.
As a manager or leader, you must understand who uses who uses your character, and how is it safe with its character. For example, it is possible that the staff character is or it is very, but the payment is not over your mini. Due to the survey you spend the surveys and it works, you can solve the purchase of goals at no cost.
2. Optimise your existing licenses
Many organizations forget to disable or shut down users who have become companies or no longer use the program. In a recent survey, organizations reported that up to 30 percent of unrelated people or users were companies and their software licenses were still active.
3. Negotiate with Resellers and Partners
After refining existing software licenses and fixing unnecessary costs, you will be able to enter into agreements with existing suppliers and reduce actual maintenance costs.
Here are some helpful tips you can use at the negotiation table:
- Look carefully at the terms of your existing contracts and those offered by alternative partners before entering into discussions.
- Aim to negotiate new contracts well in advance of your next licensing renewal date to be in the best position to negotiate; if you leave it until the last minute, your negotiating position diminishes considerably.
- Ask about any available discounts and be willing to offer longer-term commitments for the right rates.
4. Consider cloud computing
By moving to cloud software, a business, whatever its size, can save substantial costs through reduction on equipment, infrastructure and software. By investing in cloud computing, you allow yourself to rent additional processing power over the web without using expensive servers. Rather than spending big on hardware, software and licensing renewal fees, cloud computing enables you to cut down both your capital and operating costs by using the resources of your cloud provider.