Software Asset Management (SAM)

Imagine having a magic wand that lets you keep track of every program on a single computer or across your entire company network. That wand actually exists. It is called Software Asset Management, more commonly known by its abbreviation, SAM.

The term was first used in the 1980s in connection with software piracy. Organizations needed to manage their software assets, that is, the software licenses they had purchased, effectively in order to avoid legal violations and fines. This became the foundation for SAM.

What is Software Asset Management (SAM)?

SAM is the process organizations use to manage all of their software assets, from software licenses to how those assets are used and improved. In practice, SAM is a methodology that lets an organization effectively track, manage and optimize its IT resources.

Any company that uses software may need SAM to make sure all its licenses are in order and none are being violated. Here is a simple example. A company bought Microsoft Office licenses for its employees but later discovered that the number of installations exceeded the number of licenses purchased. With SAM in place, it is easy to spot the problem and fix it, avoiding potential losses and fines.

Key components of Software Asset Management

The core components of Software Asset Management are:

1. Tracking all of the company's software assets: listing purchased software products, their licenses and how they are assigned to employees. Example: a company checks all programs installed on employees' computers and compiles a list to confirm that every product is properly licensed.
2. Software inventory: checking and counting all software installed on the company's computers and servers. This applies when the company uses dedicated discovery software to scan computers and identify every installed program, making sure no unlicensed software is in use anywhere.
3. Software license management: properly recording and storing licenses for purchased software. For example, the company keeps a license database with the number and type of licenses purchased, their expiry dates and terms of use.
4. Optimizing software asset usage to avoid unnecessary spending. Say a company analyzes actual usage and finds programs that employees don't use. It can then remove surplus licenses or replace programs with ones better suited to its needs.
5. Audits to control software assets and ensure license compliance. A company can bring in a software licensing expert to check that its products are licensed correctly.