Software licences are an essential but often costly expense for many companies. Many companies are constantly looking for ways to cut costs, but of course you don’t want to lose functionality or productivity in the process. In terms of IT, this requires a strategic approach, regularly evaluating how software is used within the organisation. Are there perhaps cheaper alternatives to this, and is the software needed at all? We at Cloud360 are happy to explain how we can help with that.
Evaluation and prevention of over-licensing
A thorough assessment of the current use of software licences within the organisation is a crucial first step. Many companies can optimise their licence costs by analysing which licences are actually being used and which may be unused or underused. For example, many companies unknowingly have too many licences for Microsoft 365 or Google Workspace. Retain only licences that are actually used and thus avoid over-licensing. Many companies can make significant savings without affecting workplace operations by cancelling unused licences.
Using open source software
Besides evaluating current usage, considering open source software is an effective way to cut costs. Open source software often offers the same functionality at its core as commercial software, but without the associated licence fees.
One example is the replacement of expensive F5 Virtual Load Balancers with an open source variant, which resulted in annual savings of €5,000 in licence fees, in addition to lower maintenance costs and a more stable environment. Using open source alternatives such as migrating to Proxmox instead of VMWare can offer similar benefits. As a result, companies save both money and other resources.
Bundling and negotiating
Licence bundling can be another effective strategy for saving on IT-costs. Some software vendors offer discounts when you purchase multiple licences or products as a bundle. It is therefore smart to investigate which licences can be bundled.
At Cloud360, we map an organisation’s overall needs and then negotiate with vendors for bundle options with the best value for money. In our experience, negotiations with software vendors regularly lead to better terms and/or prices. Suppliers, for example, are often willing to give discounts if you sign a long-term contract or buy a large number of licences. This can lead to hefty savings in both the short and long term.
Switching to cloud services
Moving to cloud-based software or Software as a Service (SaaS) can also bring significant savings. These models require a lower initial investment than an on premise solution and they also often offer flexible payment plans based on actual usage. SaaS solutions can also make updates and maintenance easier, which in turn can lead to additional long-term savings. In addition, they usually offer the ability to scale up and down quickly depending on the needs of your organisation.
Want to know more about cloud services? As specialists, we at Cloud360 are happy to tell you more about this. Contact us for a no-obligation consultation.
Optimising licence types
Choose the right type of licences to suit your organisation. Software vendors typically offer different licence types. Consider individual licences, group licences or a licence per site. It is important to determine in advance which type of licence is most effective in terms of cost for use within your organisation.
Periodical audit of licences
It is important to regularly audit (or have audited) all software licences within the company to analyse whether they are still needed and used optimally. Specific licence management tools can help track licence usage and identify opportunities for savings. It is wise to hire a specialist for this to avoid accidentally cancelling licences that were indeed necessary. We at Cloud360 are happy to help you with this.
Training and awareness
One issue that is often overlooked is ensuring proper training and awareness among employees. If employees are well aware of what software is available to them and how to use it effectively, it helps avoid unnecessary software purchases. It also increases the efficiency of the software in place. Training can additionally help ensure that existing software is better utilised, which may reduce the need for licences.
Implement Software Asset Management (SAM)
Finally, it is smart to implement a Software Asset Management programme. SAM helps manage, control and optimise software usage and associated costs in an organisation. This way, you have a central overview of all software licences and can better respond to needs. Software is thus managed more efficiently, which in turn can lead to significant savings.
How can Cloud360 help?
At Cloud360, we are here to support you in optimising software licence management. With our extensive knowledge and experience in IT and cloud solutions, we will help you:
- Evaluation and optimisations.
- Advice on open source solutions.
- Negotiations for licences.
- Cloud migrations.
- Licence management.
- Training and raising awareness.
By partnering with Cloud360, you not only reduce your licensing costs, but also optimise your IT infrastructure and get it ready for the future.