In the business landscape of rapid digitization, it has been observed that the firms are increasingly leveraging cloud-based software to drive innovation, reduce cost and enhance operational flexibility. But, managing cloud software can be a challenging task, particularly when it comes to managing software assets.
The traditional approach to manage cloud software includes vendor specific regulations, real time usage tracking and different licensing models. Alternatively, ServiceNow Software Asset Management (SAM) provides affirm with a comprehensive platform to streamline the process for managing software assets, including cloud-based solutions.
This blog will address the common challenges faced by affirm to manage cloud software and provide solution to harness the full potential of cloud-based application using ServiceNow SAM.
Understanding Cloud Software Management in ServiceNow SAM
When it comes to cloud software, SAM helps to monitor and manage cloud subscriptions, licenses and provides metrics related to software usage across multiple vendors. ServiceNow SAM provides a comprehensive solution for managing IT assets by integrating it with other ServiceNow modules such as ITSM, ITOM, and many more. Also, to manage the cloud software, SAM solutions offer to automate the software asset discovery across the IT infrastructure, which includes servers, desktops, and mobiles.
Common Challenges in Managing Cloud Software
a) Visibility and Discovery Issues:
Many IT firms face difficulty in obtaining a complete visibility into their cloud software usage. when these cloud applications are being used by different departments and often bypass traditional procurement processes. This leads to situation where the software usage is untracked, creating compliance and cost risks for the firm.
b) Compliance and License Management:
A constantly changing licensing agreements and user-based pricing model raises difficulties and complexities in managing compliance for cloud software. With cloud software, firms often face difficulties relating to licensing usage against their vendors, causing over or under licensing which in turn causes financial and legal risks for the firm.
c) Integration Difficulties:
The cloud software ecosystem works in diverse environment which can include multiple vendors and platforms and can have their own APIs and reporting capabilities. Integrating these siloed systems with SAM brings in complexities in the process, which require a custom or middleware to ensure that the data is accurately pulled and reflected in SAM platform.
d) Cost Management and Optimization:
The pay-per-use model of cloud software provides both an opportunity and a challenge. Without clear visibility into the software usage and cost, firms often struggle to optimize their subscription, overpaying for underutilized software or failing to adjust licenses to actual business needs.
e) Vendor Management:
A firm deals with multiple cloud vendors managing different contractual terms, service levels, and billing structures. The firm often faces challenges in deploying a robust vendor management strategy to maintain a control over cloud contracts and related financial commitments.
Solutions to Overcome These Challenges
- Enhancing Visibility and Discovery
ServiceNow SAM keeps firm’s software information up to date with an automated ServiceNow Discovery tool and Service Graph Connectors. These tools help to track all the cloud application, ensuring that no application software remains in the shadows. The firm can gain real time insights into cloud software management by setting up automated alerts to new software installation or any integrations.
- Ensuring Compliance and Effective License Management
ServiceNow SAM provides license tracking and auditing features, overcoming compliance and license management issues. This will help the firm to keep a track of user licenses, ensuring that the firm will stay compliant with the vendor agreement. ServiceNow SAM provides a way to notify the stakeholders of potential non-compliance before it escalates into legal concerns by doing regular audits and generating usage reports.
- Streamlining Integration
Catering to the streamline issues, ServiceNow SAM offers several out-of-the-box integration to major cloud vendors such as Azure, AWS and Google cloud. For the smaller vendors, firms can go for custom APIs or third-party middleware to bridge the gap. A uniform process for integrating a new cloud software into SAM will streamline the existing process and can prevent future potential complications.
- Improving Cost Management and Optimization
ServiceNow SAM offers cost visibility for monitoring the software usage. It allows the firm to monitor the usage pattern and make a correlation with subscription cost of the application. ServiceNow SAM recommends having an automated license re-harvesting, which can detect underutilized licenses, and it can reallocate them to avoid unnecessary firm’s spending.
- Enhancing Vendor Management
ServiceNow SAM offers a vendor management module that can be customized to track vendor performance, contract terms, and software renewal dates. The SAM Module offers a centralized system to contain all the data relating to vendors and ensures that contracts comply and adhered to. Also, by setting an automated notification for an upcoming contract expiration, firms can proactively manage their vendor relationships and make sure that contract terms are maintained.
Best Practices for Managing Cloud Software in ServiceNow SAM
- Cloud Software Management Centralization:
ServiceNow Sam provides a centralized platform for maintaining control over licenses, cost, and compliance. The firm should leverage this centralized platform to manage all their cloud software.
- License Management Automation:
The firm should focus on automating the license tracking, which will ensure accurate usage reporting, and all cloud software follow the vendor agreement.
- Conducting Regular Audits:
The firm should conduct regular audits that will help in identifying the underutilized or unauthorized software, which can then be decommissioned. This will help in optimizing the software usage for the firm.
- Early engagement activities with the Vendors:
It is considered a good practice to proactively managing vendor relationship, and especially before contract renewal as this further helps the firm to secure favourable pricing and terms.
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Conclusion
ServiceNow Software Asset Management (SAM) offers a robust solution for providing for managing cloud software's. By employing the right solutions such as an automated discovery tools, standardized integration, and proactive vendor management, the firms can overcome the challenges mentioned in the blog and maximize the value of their cloud investment.
To unlock the benefits of ServiceNow SAM integration and make your organisation future ready, consider implementing ServiceNow SAM with inMorphis today.
