Raju's hosting sales director consistently looks online to see what competitive advertising is. It drives him crazy to see other "hosts," especially his competitor, Shyam, who advertises SharePoint for much less than other resellers. When Raju visited Microsoft Office 365 website, he came to know that here cost is higher than what Shyam is offering for SharePoint. 


Raju is upset as he realised that purchasing directly from the vendor will cost more than purchasing from a reseller. This made him worried about how will he increase business for SharePoint. He realised there was no way he could compete. "I'm closing down my business!" 


The sales director then made a creative decision. "I will use the CSP (Cloud Service Provider) approach and have my customers buy SharePoint. Through this approach, he will no longer share his usage report with Microsoft, which would eventually turn out to be a cost-saving method for them. That's what he did, then. He began selling loads of SharePoint. The reseller kept placing orders for him. The sales director would excitedly inquire resellers," How many CALs (client access licenses) do you need? "And resellers would place the order without ever seeking clarification, as they have little licensing knowledge and will not ask many questions but simply go as per him. 

Let’s read the post further to know what happened next with Raju and his hosting sales director’s creative decision. Also, let’s understand why ServiceNow software asset management is important for the organisation through this story.  


Also Read about the complete details on ServiceNow SAM


After-effects of Raju’s Efforts Towards SharePoint Marketing


Raju's hosting did a tremendous job marketing its SharePoint offering - "No SharePoint, No Problem!" 


It was marvellous! The CEO of Raju's hosting enthusiastically announced at the World Partner Conference, "We are hosting over 10,000 SharePoint sites!" The celebration continued. Then one foggy December morning, the office manager for Raju's hosting received a letter from Microsoft. He excitedly opened it thinking they were being promoted as 'SharePoint Partner of the Year', but he was severely disappointed. It was an audit letter. From here, the story turns.   


After reading the letter, Raju's Hosting CEO brought it to the notice of the sales director. The CEO threatened to fire him if he didn't get this problem corrected. The sales director was at a loss. "What went wrong," he wondered himself.   


Now, what do you think happened wrong? Have you ever received an incorrect licensing count?  


Actually, you don't need to respond; we already know the answer.


Read More: Skills Required for ServiceNow Developer


Why ServiceNow Software Asset Management is Important for Organisation?


The hosting industry has changed; competition and end users have changed. ServiceNow Software Asset Management, in general, is changing. In my experience, the conversation has changed from "how do I license Windows" to "what are ways I can optimize my licensing spend?" One thing I find very meaningful in licenses is – Software Assurance (SA). In the above fictitious story, the salesperson should've asked his customer, "do you have SA on these licenses". That question is important because the entire environment (hardware or virtual machine) must be dedicated for a particular usage, not for sharing purposes, if they do not have software assurance. 


I can't stress this enough. The ServiceNow Software Asset Management game is getting brutal. Every organization is looking for an effective SAM solution to cut/reduce costs. No company wants to get into any compliance position, which is mostly a hot water stage.  


If the customer does not have SA, you can certainly use the subscription model in its place. But, if you go through this route, make it a reasonable solution. Telling customers that they must pay for something they already own is not an easy conversation at all. 


Software asset management tools help to proactively manage the maintenance/retirement of software with proper lifecycle processes in place. ServiceNow Software Asset Management can help organisations reduce costs, improve security, and use the most up-to-date software. It also helps organisations to be compliant with laws and regulations related to software usage.   


Returning to his clients, the sales director asked them to acquire Software Assurance. When the customer questioned "why," all the sales director could respond was, "Because Microsoft told me you needed it." (He could not explain the reason, which would only upset the buyers) "I'm going to Shyam's Hosting," the client cried as she slammed the door. Shyam is a rival business of Raju's. Who also promotes VDI (Virtual Desktop Infrastructure)!  

Read More: Measuring IT Asset Management Performance and Success with inMorphis



In conclusion, the story of Raju's hosting sales director highlights the importance of software asset management and maintaining software assurance. The sales director's creative decision to sell SharePoint without reporting usage to Microsoft resulted in an audit letter, which could have been avoided with proper SAM processes in place.

ServiceNow Software Asset Management can help organizations reduce costs, improve security, and stay compliant with laws and regulations related to software usage. It is crucial to have a SAM tool in place to proactively manage software maintenance and retirement, stay updated on compliance positions, and provide a valid reason for any purchase. Therefore, every organization should invest in SAM solutions to avoid compliance issues and cut down on unnecessary costs.

Learn more about ServiceNow Software Asset Management and how it can help your organization reduce costs, stay compliant, and improve security.

Thanks for reading