One of the most common challenges SAMGarde see in companies we work with are those centered around money and budgets.
It’s one of the key reasons why robust SAM is such an imperative as good ITAM ensures that organisations clearly understand:
What they own – What they are using – what they need
With all three of those understood organisations, supported by some strong ITAM governance, can relax a little with what I call the Holy Trinity of IT:
- Change & Service Management more automated & better informed
- IT Sourcing can be turbo-charged
- Finance don’t have unplanned true ups bills or audit fines
However, there is another benefit of working with an Independent ITAM Consultancy that those offering ITAM services who are either resellers or publisher partners will NOT tell you about.
That is the rather lucrative fact that organisations can:
- Raise cash by SELLING SURPLUS SOFTWARE
- Reduce cost of by sourcing licences from the 2nd Hand market
For Sellers of Second Hand Software
SAMGarde have yet to find an organisation that when their ITAM project moves into delivery and Effective Licence Positions are both built & optimised we find that after many years of upgrades and migrations they have a significant surplus of unused software licences.
Usually these assets are sitting on the balance sheet fully depreciated with zero value, but are they really worthless?
As we will see in the next section “For Buyers” the phrase “One man’s trash is another man’s treasure” applies just as well to software licences as it does to many other things in life.
Put another way, recycling works just as well with Software Licences as it does everywhere else.
The question I know you want answered is “How much can I make for my company, council or government organisation?” The numbers may well surprise you as demand for second hand licences is very high (more on that below).
Just recently we helped a financial services organisation realise over £3,500,000 in unplanned cash simply from selling software licences that they had written off as worthless!
For Buyers of Second Hand Software
With budgets continually under pressure, even more so currently, IT Managers and C-Level execs are looking at ways that they can deliver on capacity needs and product upgrades as cheaply as possible.
Let’s look at one scenario that SAMGarde sees frequently in our ITAM delivery:
ACME inc has a stable platform delivering exactly what they need. It works well, the version deployed is in support for another six years and they have no plans to upgrade.
However, capacity needs to be increased.
Rather than buy the latest all singing and dancing version that has many un-needed features, undiscovered bugs & costs a fortune they decide to obtain what they need from the 2nd Hand market – saving themselves a significant amount of money in licence fees.
In this example the customer is able to meet the capacity demand without the need to go to the expense of buying the latest versions of the software.