Effective Software Asset Management with ITIL: Tips for Managing Subscriptions and Licenses

As technology continues to play a central role in modern business operations, managing software subscriptions and licenses has become a crucial task for IT teams. The cost of software licensing can quickly spiral out of control, creating budget challenges and potential operational inefficiencies. However, by applying some key Software Asset Management (SAM) practices—especially through the lens of ITIL (Information Technology Infrastructure Library)—you can regain control over your software costs and ensure that your organization gets the best value from its software investments.

Start with a Holistic Overview of Your Software Licenses

One of the first things I recommend as an ITIL Master is to take a step back and get a holistic view of your current software licensing situation. By starting where you are, you can uncover areas for improvement that may not be immediately obvious.

A good starting point is to record all of your software subscriptions and licenses in one central location. This doesn’t necessarily require a fancy SAM system—while specialized tools are great, sometimes a simple spreadsheet can do the job effectively, as long as you capture key details like:

• Software name and version

• Total number of licenses

• License cost

• Renewal dates

• Account manager and vendor contact info

• Who uses the software in your organization or the key contact for each software tool

• What the software is used for, i.e., the specific functions or business processes it supports

  
  

This central record will give you a clear picture of your licensing landscape, helping you keep track of renewals and spot any redundant or underused subscriptions.

Assess Value and Suitability: Is Your Tooling Fit for Purpose?

Once you have a clear record, it’s time to assess the value you’re getting from your tools. Some questions you might want to ask include:

• Are you getting value from the software? Consider whether the software is still meeting your organization’s needs. Has its utility decreased over time?

• Is the software fit for its intended purpose? Sometimes a tool may have started out useful, but as your organization’s needs evolve, the software may no longer be the right fit.

• Do you have more than one tool serving the same purpose? Overlapping software can drive up costs without providing any additional benefit. Consolidating tools or moving to an all-in-one solution could save money.

  
  

Evaluating License Numbers: Right Size, Right Cost

Another important aspect to consider is whether your organization has the right number of licenses. Too many licenses result in overspending, while too few can hinder productivity or cause compliance issues. Review the number of licenses against actual usage to ensure you’re aligned.

It’s also worth noting that software vendors periodically change their pricing models, which could present an opportunity for cost savings.

For example, I was recently reviewing a vendor’s licensing structure and discovered that we were still on an older per-user pricing model. By switching to the new pricing model, we not only saved money but also received more user licenses, as the new model was no longer based on a per-user fee. These kinds of shifts can create significant benefits, so it’s important to stay informed about any changes in how your vendors charge for their services.

Additionally, explore whether there are more suitable and cost-effective options available. Software vendors are constantly evolving their offerings, and a tool that was once the best choice might no longer be the most cost-effective and suitable solution. Regularly researching alternatives can help you stay on top of pricing and new features.

Implementing a Robust Software Request and Assessment Process

As part of your overall SAM strategy, it’s important to establish a robust request and assessment process for new software acquisitions. This process ensures that each new software request is evaluated thoroughly before being approved, helping prevent unnecessary purchases and ensuring that new software aligns with your organization's needs.

Equally important is conducting appropriate security assessments of any new software under consideration. As the number of tools within an organization grows, it can quickly become overwhelming to manage them all effectively. A structured process ensures that software is not only functional but also secure, mitigating the risks that come with introducing new tools into your environment.

By having clear guidelines and a formal approval process, you can maintain better control over your software ecosystem, avoiding the “wild west” scenario where new software is added without proper oversight, leading to inefficiencies and potential security risks.

Regular Reviews: A Key to Effective SAM

One of the best ways to ensure your software investments remain optimized is through regular reviews. This process should not be a one-time event but rather an ongoing activity, helping your organization stay aligned with its goals and minimize unnecessary spending.

For example, I was recently involved in a software licensing and subscription review for an organization. By analysing the tools in use, I was able to identify several quick wins, including replacing software with a more suitable tool that we already had in our portfolio. I also reviewed license numbers and found areas where licenses could be consolidated or eliminated. There was even some software that was no longer needed at all.

While the review process required a bit of effort, especially when talking to users about their needs, the results were well worth it. We gained better insight into which tools were truly essential and how to optimize licensing. The outcome? Significant cost savings and a more efficient software stack. As a result, I’ve now set up an annual review schedule to ensure the process continues and evolves with the business.

Conclusion

In conclusion, managing software subscriptions and licenses effectively requires ongoing attention, but the payoff is worth the effort. By taking the time to inventory and assess your software portfolio, review licensing usage, and ensure you’re getting value from your tools, you can keep your software costs under control and ensure your organization is using the most efficient solutions available.

Additionally, setting up a robust request and assessment process for new software and conducting security assessments can prevent the chaotic and unmanaged growth of your software landscape. This approach will help maintain both efficiency and security, ultimately preventing future headaches.

By incorporating these ITIL-aligned practices into your Software Asset Management (SAM) process, you'll be well on your way to reducing software licensing costs, improving efficiency, and making smarter technology investments.