Every enterprise has software that is essential to keep their business going. However, often because of ignorance, businesses end up spending more than they have to in order to keep the software up and running. Here are a few tips on how to save on enterprise software.
Know What You Really Pay
Understanding enterprise software pricing is key to saving money on software. The difference between 100 licenses and 100 floating licenses could be a 20% greater price tag than you need to pay.
Another common mistake is failing to understand the different tiers of service or functionality you’re seeking. Too many businesses pay for the highest software tier with functions and scope appropriate for mega-corporations when they really only need the small business version that is also typically cheaper.
Plan in Advance
You won’t be able to save money on your software licenses if you’re trying to negotiate with the supplier two weeks before they expire. Put software license expirations or contract renewals on your calendar and start negotiating a better deal when you have two to three months to make a decision.
If you’re thinking about moving to open source solutions to save money, you need to plan the transition far in advance of making such a change if you want it done right.
Take an Inventory
It is amazing how many businesses pay for “zombies”. This can take the form of people who never log off their computers, so the software license they only use a few hours a day is permanently unavailable to anyone else. Or, you have software on the server that is no longer used but you’re still paying for it. In some cases, entire servers are running without being fully utilized, while you pay for a full server license for every application on the system.
Read also: Maintenance Management Software
If you create a software inventory and review it with your team, you could find software you can uninstall and no longer pay for. A review of software licenses relative to user demand could lead you to scale back your licensing agreement or pay for a few more licenses so that your staff isn’t left waiting for someone else to log off so they can log in. A hardware inventory could allow you to identify computers you no longer own still listed as running a software application; the software inventory list allows you to show what devices are running the software and which should no longer count against you. You could also review who has what software installed and demand that someone remove it since they aren’t really using it.
Move to the Cloud
Cloud computing has several advantages. First, software costs per seat become de facto floating licenses unless you are working with one of the few applications that charge you per user account. Second, you simplify application maintenance by accessing software via the cloud instead of maintaining it on everyone’s computer. Third, you gain the ability to outsource IT support altogether whether your infrastructure, IT security, application management or all of the above.
These tips should allow your enterprise to save significantly on software.