Manually tracking your IT business’s software assets can become unmanageable quickly, especially for large enterprises, operating across multiple geographies. Without a centralized system, asset data becomes fragmented, leading to inefficiencies, compliance risks, and financial losses.
IT Asset Management (ITAM) solutions such as ServiceNow SAM (Software Asset Management) address these challenges by offering real-time visibility, process automation, and lifecycle control across IT assets.
However, selecting the right software asset management requires more than just ticking feature checkboxes. Businesses must evaluate solutions based on strategic fit, long-term scalability, and operational impact.
This blog explores the importance of effective software asset management for modern enterprises and outlines five essential factors which are accessibility, functional capabilities, scalability, pricing model, and support services, to consider when choosing the right asset management platform.
Understanding the 'why' behind IT asset management helps clarify what to look for in the right solution. Read the blog to know the importance of SSAM for digital-first enterprises and 5 factors to consider while choosing SAM.
Why Managing IT Assets Is Crucial for Enterprises
Licensed software, mandatory for digital-first enterprises, contributes to major capital expenditure. Efficient asset management enables IT businesses to control costs, ensure compliance, and support digital transformation initiatives. ServiceNow provides a single system of record for asset data through ServiceNow SAM1, allowing for complete lifecycle management across procurement, inventory, usage, and disposal. Some benefits of implementing SAM are:
Controls Cost
SAM helps enterprises control costs by preventing unnecessary purchases and maximizing the use of existing resources. For example, ServiceNow SAM enables enterprises to identify underused software licenses and automatically reallocate or reclaim them, ensuring compliance while reducing software expenditure.
Improved Operational Efficiency
Properly managed assets are maintained in optimal condition and readily available when needed. This reduces downtime and ensures uninterrupted operations. ServiceNow SAM provides automated workflows for maintenance, scheduling and end-of-life processes, improving productivity across departments.
Data- driven Decision-Making
SAM provides real-time data on asset health, usage, location, and lifecycle status. This information empowers IT and operations teams to make informed decisions around upgrades, replacements, and procurement, thereby improving both short-term planning and long-term strategy.
Regulatory and Contractual Compliance
With increasing rules around data privacy, license entitlements, and software compliance, it is vital to maintain accurate records. ServiceNow’s built-in audit capabilities and entitlement management features help businesses meet compliance requirements and avoid penalties.
5 Key Factors to Consider Before Choosing a SAM Solution?
1. Accessibility
Modern asset management platforms must prioritize accessibility and ease of use to serve diverse user groups effectively. Look for solutions that adhere to WCAG (Web Content Accessibility Guidelines), offering features like keyboard navigation, screen reader compatibility, and mobile responsiveness.
Areas to consider
- User Interface: The platform must allow keyboard navigation and have an interface that is simple to understand, with the right color and contrast combinations.
- Compatibility: The platform should be compatible with assistive technologies such as screen readers, magnifiers, and voice recognition.
- Documentation and Support: The product must include online tutorials, customer support options, and clear and understandable documentation.
2. Features and Functionality
Depending on your organization's unique requirements, SAM can provide a wide range of features and functionalities.
Areas to consider
- Automated Discovery: The tool should include connectors that automatically identify and populate real-time assets and configuration data into the configuration management database (CMDB).
Also,read Accelerating Business Growth with ServiceNow Discovery
- Analytics and Reporting: It offers performance dashboards and custom reporting tools to monitor asset utilization, compliance, and total cost of ownership.
- SaaS Visibility: The tool should include features that track cloud application usage and help identify both overspending and underutilized licenses.
3. Scalability
To adapt to shifting business needs, SAM needs to be scalable over time.
Areas to consider
- Flexible Data Models: It should support scalable data structures that can manage millions of assets without compromising performance.
- Multi-Entity Support: It must offer capabilities for multi-tenant or multi-entity environments, allowing enterprises with global or diversified operations to manage assets across business units.
- Workflow Automation: The module should provide configurable workflows and rule-based automation to align with industry-specific processes and compliance mandates.
- System Integration: It must enable seamless integration with external systems such as ERP, procurement platforms, and ITAM tools to maintain synchronized operations and consistent asset data.
4. Cost Structure and Licensing Model
Cost is a crucial factor to consider when you select asset management software for your IT business. Depending on the specific features and functionalities included, the size of your company, and the number of users, the cost can vary significantly.
Areas to consider
- Subscription or One-Time Purchase: The module should offer subscription-based pricing that adjusts dynamically based on the number of assets, users, or the range of features selected.
- Cost per User: Some software asset management has flat-rate pricing, but some have user-based fees. Prefer the pricing model, which is more cost-effective for your business.
- Support and Maintenance Costs: Some asset management software could need more support and repair. Consider whether these expenses will be billed individually, or whether the pricing covers them.
- ROI Tracking: It must include built-in tools to help enterprises quantify returns by measuring license savings, compliance improvements, and operational efficiencies.
- Cloud-Based Delivery: The solution should minimize infrastructure and maintenance overhead through automated upgrades and reduced reliance on internal IT resources.
5. Support Services
Uninterrupted support should be considered when comparing software asset management.
Areas to consider
- Availability of Support: Prefer tools which provide availability of support, such as 24/7 availability, during business hours, or on a limited schedule.
- Response Time: Consider how quickly support requests are responded to, whether it takes minutes, hours, or days.
- Certified Partner Support: Look for partners who offer tailored workflows, integrations, and continuous value realization.
How does ServiceNow SAM help IT businesses?
ServiceNow SAM provides a unified solution that automates the entire software lifecycle while tightly integrating with the Configuration Management Database (CMDB).
Here’s how ServiceNow SAM delivers value:
1. Software License Optimization
- Entitlement Management: SAM imports license entitlements from vendors and helps to reconcile license rights with actual usage.
- Reclamation Workflows: Identifies unused or underutilized software and automate license reclamation to reduce waste.
- Overlapping Subscriptions: Detects overlapping SaaS subscriptions across departments and consolidates them for cost savings.
2. Audit Readiness and Compliance
- Real-Time Compliance Positioning: Continuously monitor license compliance across all vendors, ensuring you're always audit-ready.
- Audit Defense Reporting: Generates audit reports that map entitlements to installations and usage, streamlining corrections and reducing financial exposure.
- True Compliance Engine: The built-in compliance engine calculates license positions using vendor-specific rules, offering precise insights.
3. Cloud Application Visibility
- SaaS Usage Monitoring: Tracks the usage and cost of cloud applications using capabilities like cloud insights.
- Shadow IT Detection: Identifies unsanctioned software and unauthorized downloads that may pose security risks.
4. Integration with IT Workflows
- CMDB Integration: SAM works seamlessly with the ServiceNow CMDB to map software installations to hardware assets, users, and locations.
- ITSM Alignment: Integrates with ITSM processes like incident, change, and request management to govern software provisioning and retirement.
- Procurement Coordination: Aligns software acquisition with the ServiceNow Procurement module to prevent unauthorized purchases.
5. Actionable Insights and ROI
- Executive Dashboards: Visualizes savings, compliance levels, and reclamation activity in real time.
- Forecasting and Budgeting: Predicts license renewal needs and future spending trends with analytics.
- ROI Tracking: Quantifies cost savings achieved through reclamation, contract consolidation, and compliance enforcement.
Conclusion
Many enterprises today face the challenge of managing software assets using outdated tools, disconnected systems, and manual processes. This often results in unnecessary spending, compliance risks, and limited visibility into how software is being used across the enterprise.
To overcome these challenges, they need a Software Asset Management (SAM) solution. SAM not only helps businesses keep track of their software inventory, but also optimizes license usage, improves compliance, and enables better decision-making through real-time insights.
ServiceNow SAM offers a comprehensive approach to managing the entire software lifecycle. With features like entitlement management, automated reclamation workflows, SaaS visibility, and audit-ready compliance reporting, it empowers IT teams to reduce costs, minimize risk, and drive operational efficiency.
Partner with ServiceNow invested partner, inMorphis ensures that your ServiceNow SAM implementation is aligned with your unique business needs. Our team delivers tailored workflows, seamless integrations, and ongoing support to help you realize the full value of your SAM investment.
Ultimately, investing in the right asset management solution is an investment in the agility and resilience of your enterprise. Let inMorphis help you unlock its full potential. Contact us today!
