1. License reconciliation, elimination of duplicate software and redeployment. Assuming an average cost of $50 per licensed product. The average PC can eliminate/redeploy one licensed product for a savings of:
$50 x 2,500 PCs = $125,000
2. Consolidation of software to servers for server based launching. Assuming that 25% of the user population can eliminate one software application from a local hard drive to a central server and that the average application requires 20-80meg, than the organization can save significantly by deferring costly hard drive upgrades estimated at $500 per PC:
25% of users (625) x $500 per PC = $312,500
3. Software license compliance methodology. Organizations have not demonstrated a methodology to effectively manage software licenses. The fines associated with each non-compliant event can be $100,000 to $250,000. In most large organizations, the value of mitigating the risk is measured in terms of a premium paid. Would a $25,000 premium be worth it to offset the risk? …show more content…
Volume License Agreements. Organizations should assess their software usage and determine opportunities to renegotiate agreements and take advantage of VPA discounts. Assuming average software expenditure of $1,500 over five years, the leverage of VPAs can save:
$75 per PC x 2,500 = $187,500
5. Maintenance Negotiating Power. An updated inventory is essential to renegotiating a maintenance contract. Service providers add risk to a quotation when there is a lack of inventory data. This risk equates to a 10-20% markup. The Gartner Group TOC study assumes $859 per PC over five years for maintenance:
$850 per PC/5 years = $170 x 10% x 2,500 = $42,500
6. Surplus Discovery. The inventory aspect of implementing the asset management solution usually yields between 8 and 12% of surplus equipment. Assuming a surplus discovery rate of 2% and an average book value of $1,000, the organization will
$50 x 2,500 PCs = $125,000
2. Consolidation of software to servers for server based launching. Assuming that 25% of the user population can eliminate one software application from a local hard drive to a central server and that the average application requires 20-80meg, than the organization can save significantly by deferring costly hard drive upgrades estimated at $500 per PC:
25% of users (625) x $500 per PC = $312,500
3. Software license compliance methodology. Organizations have not demonstrated a methodology to effectively manage software licenses. The fines associated with each non-compliant event can be $100,000 to $250,000. In most large organizations, the value of mitigating the risk is measured in terms of a premium paid. Would a $25,000 premium be worth it to offset the risk? …show more content…
Volume License Agreements. Organizations should assess their software usage and determine opportunities to renegotiate agreements and take advantage of VPA discounts. Assuming average software expenditure of $1,500 over five years, the leverage of VPAs can save:
$75 per PC x 2,500 = $187,500
5. Maintenance Negotiating Power. An updated inventory is essential to renegotiating a maintenance contract. Service providers add risk to a quotation when there is a lack of inventory data. This risk equates to a 10-20% markup. The Gartner Group TOC study assumes $859 per PC over five years for maintenance:
$850 per PC/5 years = $170 x 10% x 2,500 = $42,500
6. Surplus Discovery. The inventory aspect of implementing the asset management solution usually yields between 8 and 12% of surplus equipment. Assuming a surplus discovery rate of 2% and an average book value of $1,000, the organization will