Insurance Provider Optimizes SAM Governance Resulting in $20M in Cost Savings and Cost Avoidance
Company Profile
Total Cost Analysis:
million
in cost avoidance & cost savings.
The Challenge
Recurring Issues in Managing and Tracking Software Entitlements
Due to a lack of governance, specifically ineffective controls and defined processes, the client was unable to accurately measure and account for licenses purchased and licenses deployed across 15 major software publishers.
The Solution
Implement Appropriate Processes, Controls, and Tests to Identify Risks
The provider partnered with Anglepoint in a Managed Service to:
- Increase visibility around software contract renewals for the 15 in-scope software publishers
- Build a plan-on-a-page to review license consumption, based on contract renewal dates
- Accurately report license consumption and requirements for 15 in-scope publishers, leading to cumulative cost avoidance & savings of around ~$20M
- Implement, configure, & manage vendor required tools, such as IBM’s License Metric Tool (ILMT)
The Impact
Millions in Cost Savings
- $12.8M realized cost avoidance for IBM
- $4M realized cost avoidance for Computer Associates
- $400k realized cost avoidance for VMware
- $3.3M in cost savings over multiple publishers including Microsoft, Salesforce, VMware, Quest, Computer Associates, Micro Focus, SAS Institute, Red Hat, Tableau, and Informatica
Not only did they lack a contract repository, but they were tracking deployments for multiple publishers.
Exhibit 1:
Cost Savings Breakdown
"Our Anglepoint experience was valuable. Anglepoint helped us establish a Software Asset Management practice capable of analyzing our own license positioning for software vendors."
– Director, IT Governance