The current economy and the pandemic has emphasized the need to cut costs and preserve cash on hand for all companies. Workplaces are changing and trying to navigate and optimize their processes. Is now the time to consider your engineering software asset inventory?
“It’s often said that “you can’t cut your way to growth,” but you can cut your way to survival.”– Gartner
Gartner took a look at a few ways to reduce IT costs (Read article). Managers are looking more at their engineering and IT spends. Here are a few considerations when planning your IT inventory spend:
- Is your organization buying the right amount of engineering software licenses?
- How do staffing changes affect the number of licenses you need?
- Are you prepared if vendors increase compliance efforts?
What are potential savings?
Our solution has helped companies save 15-25% of their engineering software spend.
Here are a few tips:
- Consider your engineering software licenses:
- Are there licenses that no one is using or are unnecessary?
- Should licenses be reassigned?
- Can expensive licenses be shared across the team?
- Are there application redundancies (similar functions)?
- Target immediate impact – look at monthly and quarterly expenses (in 1-9 months, not years).
- Consider discretionary (new projects) and non-discretionary cost (reducing usage – where LAMUM can be very useful).
- Look at both variable (dependent on volume) and fixed (subscriptions, etc.) costs.
- Inspect accounts – looking at expense level detail (This is where the asset management side of our product is very helpful).
- Start with large, upcoming software renewals.
Have you considered the changes in your team?
- Employees who have left the company or are in different groups or business fields (Did you know that our solution offers a chargeback reports?)
- Inactive users vs. users who are logging in more frequently
- Contractors who may no longer need access
Our technical experts are ready to answer your questions and support during this challenging time.