Most commercial and public sector organizations of any size will have license agreements with software companies, but how many really understand the terms they agreed to?
Avoid Unbudgeted Spend
Many companies are experiencing significant increases in unbudgeted IT spend due to vendor audit activity. In some cases the compliance liability runs into $M’s. The frequency of audits has increased dramatically in the last year, partly due to their role in growing vendor sales revenues, but also as a result of changing licensing models and expanding product portfolios following M&A activity. A recent event poll by Gartner revealed 90% of respondents had received at least one audit notification in the last 12 months and 53% had received two or more.
Software companies’ sales and license compliance teams’ objectives are invariably aligned to their financial year.
- Do you know these key dates?
- If you received an audit notification letter tomorrow, would you welcome the auditor with open arms?
- What would they find?
Being prepared, managing your software suppliers and understanding your estate are key elements of a defensive strategy.
Over the last three years alone Concorde has helped clients mitigate over $300M in unnecessary license and support fees connected with audits. Specific examples include saving over $70M in a single IBM audit, $4.5m in an Oracle audit and identifying Microsoft license optimization options for a client saving over $750k.