What Is ServiceNow Software Asset Management?

Overview

Software Asset Management (SAM) is a set of business practices and strategies for optimally managing acquisition, usage, and lifecycle maintenance of software across an organization. SAM enables organizations to create an accurate system of record for all software assets that can be maintained in real time. The goal of SAM is to:

  • Optimize license usage
  • Eliminate duplication of software licenses
  • Reduce software-related expenses
  • Identify license agreement violations
  • Inform software purchasing decisions

SAM is one component of a broader set of practices known as IT Asset Management (ITAM). SAM focuses on managing software, while ITAM encompasses management of an organization’s entire IT environment.

Why Businesses Need SAM

Businesses spend considerable time and resources to manage software assets; this process is often done manually in spreadsheets and requires use of multiple inventory and discovery tools. The firm Enterprise Management Associates published a 2018 white paper that found:

  • The average organization spends 15 hours every week resolving discrepancies among its IT assets.
  • The average organization spends 30 hours collecting asset entitlement data in preparation for a major software audit.
  • Organizations that are the most successful at SAM are 2.7 times more likely to rely on next-generation automation technologies than organizations that are comparatively successful at SAM.

Organizations are buying more and more software to support their business environment. Spending on software can easily eclipse 20% of IT budgets, according to ServiceNow. The research firm Gartner has estimated that spending on enterprise software will grow at 8.6% per year through 2020, with growth of SaaS (Software as a Service) estimated at a whopping 19.3%.

At the same time, Gartner has estimated that only 25% of businesses will be satisfied with the value they’re deriving from their software assets by 2020, primarily because they have not created proper alignment between the assets and their pre-purchase expectations for these assets.

2016 Gartner study found that organizations can cut spending on software assets by as much as 30% by implementing the following SAM best practices:

  • Looking for savings in how software is configured
  • Identifying all opportunities to recycle software licenses instead of making new purchases
  • Using a SAM platform to automate, accelerate, and improve manual processes

Why Businesses Choose ServiceNow for SAM

ServiceNow’s SAM platform provides a single system of record upon which to identify opportunities to reduce costs, eliminate duplication of resources, improve compliance, mitigate security risks, and drive standardization. SAM also is nested with the greater ServiceNow ecosystem, allowing it to integrate optimally with:

  • ServiceNow IT Service Management (ITSM)
  • ServiceNow IT Business Management (ITBM)
  • ServiceNow IT Asset Repository and Configuration Management Database (CMDB)
  • IT governance, risk, and compliance management
  • IT governance, risk, and compliance management

Businesses across all industries have reported achieving significant efficiencies using ServiceNow SAM:

  • Community Health Systems, which runs 127 hospitals in 20 states, identified 19,000 machines with duplicative software licenses after implementing ServiceNow SAM. The duplicated licenses represented 40% of the company’s license true-up costs.
  • Raymond James Financial, a financial services company that manages $732 billion in client assets, implemented ServiceNow SAM to reduce the labor-intensive process of preparing for vendor audits. For every audit, the company was spending two weeks to pull information from multiple systems, including financial systems, asset management systems, and SharePoint. Now, this information is available instantly.

Where SAM Is Headed

Businesses’ growing need to manage the lifecycle of software assets and ensure compliance readiness will drive the growth of the SAM market in the coming years. The analyst firms MarketsandMarketsResearch and Markets, and ReportLinker have all estimated that software asset management is expected to grow into a $2.3 billion industry by 2022, at a compound annual growth rate of 14.8%.

ServiceNow Products

Businesses that use ServiceNow are able to rapidly achieve improved self-service capabilities for all users (both employees and customers) and elevated efficiencies in service operations.

ITSM

Information Technology Service Management

ServiceNow IT Service Management (ITSM) helps you accelerate your digital transformation by enabling services for your end-users wherever they are, whenever they need it, and from any device they have.

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ITBM

Information Technology Business Management

Information Technology Business Management (ITBM) is a set of workflows and tools for optimally developing, delivering, and managing business services through an IT-focused lens.

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CSM

Customer Service Management

Customer Service Management (CSM) is a set of workflows and tools for optimally overseeing and tracking all interactions with a business’s customers with the goal to comprehensively manage the customer experience (CX).

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ITOM

Information Technology Operations Management

IT Operations Management (ITOM) is a set of services, processes, and best practices for optimizing the availability, efficiency, and performance of an organization’s IT operations. Through IT Operations Management, the organization reduces infrastructure spending, improves utilization of existing resources, and reduces risks due to human error.

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ITAM

Information Technology Asset Management

Information Technology Asset Management (ITAM) is a set of business practices and tools for optimally supporting lifecycle management of IT assets with the goal of ITAM helping organizations manage their hardware and software inventory more effectively.

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HRSD

Human Resource Service Delivery

HR Service Delivery (HRSD), also known as HR Service Delivery, is a best-practices approach for automating and standardizing HR processes within your organization that enables organizations to provide engaging, holistic HR services to employees.

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THE BUSINESS CASE FOR SERVICENOW

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Business Case

According to Forrester Consulting’s 2017 The Total Economic Impact of ServiceNow report, ServiceNow customers benefit from a 20% increase in IT productivity and enjoy, on average, a 195% ROI and payback in less than nine months.

While Forrester provides numerous benefits and statistics quantifying ServiceNow’s ROI, businesses should also develop a customized business case for their own organization. Crossfuze can create a detailed ServiceNow business case for any qualified organization that requests one.

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Are you considering investing in the ServiceNow platform for your organization? Or have you recently invested in the ServiceNow platform and want to make sure you get the most from your investment? Put away your search engine of choice, because we’ve done all the research for you. Here’s a handy list of resources to help you learn more about ServiceNow.

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ServiceNow Success Story: Gary Collins, Finastra

Gary Collins shares his experience working with Crossfuze on launching Smart Launch for ServiceNow ITSM in this informative video. Onboarding ServiceNow has never been so easy since Smart Launch for ITSM. With Finastra’s ITSM success, Gary and his team are now working with Crossfuze on the next stage of their ServiceNow roadmap.

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ServiceNow Onboarding Success Workbook

This highly interactive workbook will position you for early and often platform wins. Dive in and start building your ServiceNow foundation for success using the workbook’s advice, tips, and dynamic forms. Capture your goals, strategies, and tactics all in one spot. Collaborate and share with colleagues.

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