How to Cut Your Software Costs
The first step to lower your software spend is to find out which software is actually available in your company.
The main issue many companies face is that their software portfolio is comprised of a patchwork of vendors, which negatively impacts the price they pay for the software.
They may have licensed similar products from different vendors or even lost sight of the individual terms of the contract, two scenarios that can lead to superfluous spending.
The good news is that this offers great potential for cost reduction.
Cost Savings through Software Consolidation
Using the following checklist, you will have a good tool to quickly see success in reducing your software costs.
|Goal||Measures to take||Examples||Priority (Top 1, 2 or 3)|
|Reduce your software costs|
|Procurement: Reduce your purchasing costs by consolidating software products & versions||• Reduce the number of vendors per function |
• Buy in bulk: Purchasing from fewer vendors in larger quantities usually translates into greater discounts
|• Rather than having many vendors as PDF writers, consolidate to one company standard vendor (or X depending on requirements) |
• For example, decide which existing or purchasable tool can fulfill multiple functions, such as PDF writing, editing and reading
|Unused software: Software is often installed but not used, meaning it is unnecessary for that employee to maintain the license||• Detect software that is not needed in your company|
• Recycle software that is no longer being used by one user to another employee
|• Actual examples are frequently MindManager, Microsoft Project or Visio licenses|
• Software that is not being used is often forgotten, so when a new employee joins the team, new software is purchased. To make matters worse, this purchase may also come with Software Assurance or another subscription
|Negotiating and decisions: Analyze your current portfolio based on business requirements instead of just renewing your current contracts blindly||• Analyze your software data yourself|
• Make quick analyses before contract negotiations or discussions within your company
• Discuss with IT colleagues and various departments on a level playing field
|The more software that is ordered indiscriminately, the greater the opportunity you have to get a handle on your software procurement moving forward. When someone wants to purchase a new program, you are now able to say that you already have a possible alternative that may be more cost effective, and you can ask them to explain why the existing software is not sufficient|
|Optimize your operating costs|
|Maintenance, support and training costs: If you have a wide range of software versions, you have higher ongoing costs for maintenance and support contracts with vendors as well as for internal training and user support||• Identify software versions that are not up-to-date|
• Reduce unnecessary maintenance and support contracts for software that is no longer used
• Consolidate your software to a smaller number of vendors to lower your costs for training and user support
|• Many companies have a wide range of versions of Adobe Acrobat Professional, Acrobat Standard and Photoshop. If an operating system is updated, the different versions of these programs have different requirements and need individual support. It will be much easier and less time-consuming to manage your installed software if everyone has the same version|
• We often see that companies have software that is no longer being used but they’re still paying for the subscriptions. Achieving transparency into your unused software can provide significant cost savings
Do You Want to Optimize Your Software Costs by up to 30%?
With COMPAREX Portfolio Management Platform, you get all the needed information to consolidate your software portfolio and lower your software costs.
In a 30 day trial, our COMPAREX experts evaluate how much you could save by using our managed service for consulting together with the Portfolio Management Platform.
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