3 Predictions for asset management in 2014

Last week I attended Gartner’s IT Financial, Procurement & Asset Management Summit which took place in Orlando, FL September25-27. HP was a Silver sponsor of the summit and 700+ attendees from more than 470 companies were eager to hear Gartner’s recommendations on how to get the most out of IT assets and manage IT investments for long-term sustainability. I attended this conference last year as well, and I can say that this year it was bigger and better.  Sessions discussed, among others:

  • Mobility
  • BYOD and BYOSL (bring your own software license)
  • Licenses in virtualized and Cloud environments
  • Internet-of-things
  • Chargeback.

Identically with the chosen topics, all clients that visited our booth were interested in Software Asset Management (SAM) and IT financial management.

 

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SAM

It is no surprise that software asset management was the prevalent topic in the IT Asset Management (ITAM) track with very well attended sessions. In the last year, vendors have once again increased the frequency software audits; while at the same licensing new environments have become much more complicated. At the event tips and tricksonhow to optimize virtualized software licenses and costs were discussed. There were even mentions of how to try to negotiate a purchase and maintenance contract, but the clear statement from Gartner was that there is no workaround to being very familiar with license agreement. Organizations should never make up their own interpretations and assumptions when it comes to software licenses contracts and entitlements.

Asset managers cannot personally control virtual machines, but nevertheless they cannot afford to be a bottleneck and jeopardize IT’s nimbleness. Regular inventories and reconciliation with purchased licenses and entitlements is the right approach to fix inconsistencies in advance. Gartner suggested that asset managers document the savings and all benefits of software asset management if they want to get out of fire-fighting mode before vendor audits. And it appears that audits are so frequent these days that many organizations may have multiple audits happening in parallel. In their closing session, Gartner urged attendees to analyze inventory and license data monthly to move in the right direction.

 

Relevance

In the end everything comes down to cost. The fact that over-the-board IT financial management isn’t a priority compared to some other domains has left us with uncompetitive legacy IT costs.  Unfortunately situation is visible to everyone in the organization.

Gartner gave us new predictions about how much of enterprise’s IT expenditure will be managed outside the IT’s budget in the next couple of years: 35%. They predicted that many IT functions will continue to be bypassed if IT does not stabilize the ground. They also ruffled a few feathers by suggesting that all of the IT functions that attend this conference—financial, asset-, vendor management and procurement—may become obsolete if they do not explore new ways of supporting business needs and wishes. They also have to meet the expectations of the business, but in a competitive and sustainable way. 

 

Chargeback

The major topic of the conference as well was cost optimization and chargeback. As in the past, Gartner coached their clients that cost cutting at IT is needed and possible—but it must be done intelligently. Costs from inefficiencies and legacy IT are still spread all over and the difference in IT spend between “average” and “best performing” IT is huge.

However, costs should not be put in the driver’s seat because IT must deliver “value” as well. For example: IT should think about eliminating whole services and reducing service levels wherever possible. There is a mechanism that can help, as proved in all other business types, but where IT still feels uncomfortable dealing with it: chargeback. Most organization begin with show-back but the ultimate goal is that 100 percent of IT organizations should have chargeback in place. IT services that are perceived as “free” drive behavior and the IT of tomorrow cannot afford to remain stagnant and leave legacy IT costs untouched.

 

For more information about IT asset management and chargeback, visit our homepage here.

Comments
Piaras MacDonnell(anon) | ‎10-07-2013 11:06 PM

 

 

Your point on Chargeback or the less contentious version "showback" is an interesting prediction.  

It is certainly increasing but is only possible where the SAM systems and processes are mature and have been delivering visability for several moths in a row.

 

That said it is where real license optimization can be achieved.

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About the Author
Vesna is the senior product marketing manager at HP Software. She has been with HP for 13 years in R&D, product management and product marke...


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