Optimize Enterprise Software Spend

Optimizing the way you deploy, renew and govern software contracts can transform your business.

ISG ADVISED SOFTWARE AGREEMENTS SEE AN AVERAGE COST REDUCTION OF 24%

The software market is a thing in motion. Shrinking product cycles, new vendor business models and the ever-present specter of an audit make licensing and managing software assets a challenge. For many organizations, on-premise and cloud software comprise the largest component of IT spend.

To optimize your software spend and compliance, you need to:

  • Align Software Contracts with Business Goals
  • Manage Software for Full Utilization
  • Improve Governance and Software Licensing Audit Compliance

And to get the best deal, you need proven negotiating experience and deep insight into a rapidly changing market.

Recover Your Software Costs

ISG helps enterprises manage software assets, mitigate software compliance risks and save an average of 24 percent per engagement.

 

Potential Software Savings

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ISG’s blueprint for cost reduction, complexity reduction and compliance mitigation can be described through three discrete stages:

  1. Understand your entitlements
    • Prioritize software transactions and digital transformation presenting “windows of opportunity”
    • Analyze your current software deployments, licenses and spend to understand entitlements, utilization, virtualization and commercials
    • Review impacts of mergers, acquisitions, divestitures and asset transfers that may impact scale, utilization or compliance
    • Reposition licensing models to optimize cost scenarios for business requirements
  2. Review and Negotiate
    • Refine business case and roadmap
    • Develop and confirm negotiation targets and strategy
    • Execute negotiations and deliver vetted contracts
  3. Build a dynamic roadmap
    • Define and implement a software asset management (SAM) plan
    • Define supporting organization and operations and plans to support organizational change management
    • Provide ongoing SAM services and software audit defense

Case Study: SAP S4/HANA Evaluation, Selection and Negotiation Project

Understanding digital and business transformation underscores effective negotiation and cost/value optimization.

Opportunity

This distribution company was evaluating a comprehensive digital transformation project to modernize its existing enterprise resource planning (ERP) solution and improve business operations based on an S4/HANA solution. The project represented a significant business risk based on the financial investment required and the complexities of implementing a new technical solution architecture. ISG Software Advisory Services was brought in to provide expert guidance on architecture, licensing requirements and product functionality capabilities.

Imagining IT Differently

ISG Software Advisory Services led the architecture review to understand the product solution and technical architecture requirements, implications and differences between the existing and proposed solutions. ISG assessed the current proposal based on the proposed bill of materials (BOM). Based on our understanding of the client’s business requirements and technical architecture objectives, we were able to revise the proposed BOM into four different possible solutions. Working collaboratively with client leadership, we presented a refined architecture and BOM and developed and executed a negotiation strategy to maximize business value with the lowest possible financial investment and business risk.

Future Made Possible

ISG provided recommendations that refined the SAP BOM and provided market-competitive benchmark pricing and licensing metrics to guide the client’s negotiation efforts. We achieved an additional 20 percent in software cost savings and reduced maintenance and support fees, along with other key business terms critical to client transformation objectives.

Rationalize Your Software Contracts

If you are currently or will soon be acquiring or renewing software from Microsoft, SAP, IBM, Oracle, Cisco, ServiceNow or other major software providers, contact our software advisory team. ISG leverages our proprietary tools, processes and data with unparalleled commercial and licensing experience to provide insights and practical guidance that will save you money.

Meet the Team