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1.1: Business challenges of License Mana... > Software cost management and optimiz... - Pg. 8

1.1.3 Software cost management and optimization Software accounts for around a quarter of the IT budget, and, based on latest trends and reports, software budgets are increasing faster than other budget areas. If we compared the escalation of hardware and software costs in the IT organization, we would discover that hardware costs are decreasing while the power provided by this new hardware is increasing. This fact could have a positive impact on software costs, as they are often based on hardware capacity. The number of hardware assets per employee is more or less low. In comparison, and as mentioned in the paragraph above, software costs are increasing, and the number of instances of software installed for or used by employees is also increasing. However, the management of Software costs is often cited as one of the lowest priority IT projects. This could be explained because solutions often deployed to manage software costs did not provide the expected result, because the solution is not integrated with all the necessary processes or because it is hard to identify software usage and what software is unnecessary. The following list provide some key points of what an optimization of your software costs may bring to your enterprise: