Cost Saving Strategies: IT Asset Management and Renewals

IT budgets remain tight while the mission has expanded. Worthwhile savings can be obtained by working with a partner that advocates on your behalf. Choose a partner that positions your renewals for the best available pricing from all your OEM vendors.

Quite a bit has transformed in how businesses consume IT. Mobile endpoints, hybrid cloud, multi cloud and defending against escalating cyber security threats come to mind. Yet the basic fundamentals of asset management and the renewal of software and hardware support contracts remains unchanged. The location of your assets is likely changing, yet these fundamentals are still key in keeping your production infrastructure up and delivering to your business. Companies that identify their assets and match each asset's support level to the businesses operational needs are prepared to employ cost savings strategies and reduce their operational expenses.

Cost Savings Strategies

  • Eliminate waste – Gartner reports that many IT shops waste as much as 20% of their renewal spend on:
    • An inaccurate IT Asset inventory
    • Failing to remove excess software licenses
    • Not removing decommissioned hardware from support in a timely manner
    • Collecting shelf-ware – software licenses that are unused or are not deployed
    • Processing renewals past their end date and incurring late charges

  • Employ Cost Avoidance:
    • Check your previous purchasing history and consolidate small and large purchasing transactions into a single large transaction for a larger discount
    • Understand how the OEMs view your purchasing
      • Most OEMs tier discounts by the size of each individual renewal transaction
      • An early renewal purchasing commitment can gain you better terms from the OEM
      • Align purchases to the OEM's financial year end/quarter ends as they will incent you to purchase before the ends of these periods
  • Team with a Partner that is your advocate to the OEMs:
    • Gain a simplified and consolidated renewal experience
    • Leverage the knowledge of a Partner that fully understands how to consolidate your purchases into the best position for receiving the best available OEM pricing
    • Work with a Partner that passes these OEM discounts on to your organization
    • Choose a Partner that additionally offers their own cost savings incentives for your renewal business

  • Match the correct support level by understanding the lifecycle of the software versions in use and their end of support date.

  • Match individual equipment support levels to the business requirement.

  • Avoid surprises/fees if audited by knowing that you are complying with OEM licensing.

Want to know more information? Contact us today to learn how IT Partners can be your advocate for your renewals and save you money on asset management!

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Wednesday, 26 February 2020