As 2022 winds down, we can’t help but look at the changes in software asset management (SAM) with rose-tinted glasses. Admittedly, some changes took businesses out of their comfort zones, and some were game changers.
Here is a recap of some software asset management trends that defined 2022.
- Cloud asset management became a big deal
- An increasing focus on cybersecurity
- Data analytics and automation became a must-do
- An increased focus on software license audits to prevent regulatory issues
According to Market Research Feature, the Software asset management market will be worth as much as $8.1 billion by 2030. And thanks to software asset management’s close bonds with IT, it isn’t something you’d back to resist change.
So, besides the apparent increase in market size, what does the future hold for software asset management in business? Will there be a more significant shift toward the digitization of software assets?
That digital shift has already started. But is that all we have to see concerning software asset management? You bet not!
Here are the trends and predictions that could define the future of software asset management in business.
Let’s dig in and have a look at the Future of Software Asset Management tools in Business: Trends and Predictions
1. Digitization and a data-heavy approach to managing software assets
Data analytics has been the cornerstone of any approach to software asset management for some time. Most businesses swear by big data and other data forms. It’s easy to see why.
Data-heavy approaches offer many benefits to businesses. Companies don’t act on intuition as they used to in the dark days before data analytics. This data-heavy approach can only increase in the future, especially with the rise of advanced data analytics tools.
Digitization and automation will lead to the following developments:
- The making of quicker and better investment decisions.
- An analytical approach will also lead to the proliferation of automated tools.
- More effective decision-making in software asset management.
These automation tools will make license tracking, software deployment, and compliance reporting easier from a software asset management standpoint.
Indeed, Michelin Chief Digital Officer Eric Chaniot claimed the tire manufacturer’s success heavily relies on its ability to employ a data-heavy approach.
There will be more digitization and heavy data reliance in software asset management.
2. Increased focus on compliance
You must have often heard about compliance when dealing with software assets. Compliance means using the software assets that you should legally be using. Corporations risk getting audit fines if they are compliant.
That means enterprise asset management software should have the proper licensing, allowing you to avoid regulatory fines. Unfortunately, not all companies understand the need for their software assets to be license compliant.
This way, there will be more focus on compliance to prevent fines. Thanks to the increasing complexity of software license agreements and the risk of non-compliance, organizations will emphasize compliance with software license agreements more.
That will include regular audits and specialized software license management tools to track usage and ensure compliance. For any serious business entity, that’s not something they’d want to compromise on.
3. Uptake by more reluctant businesses
The proliferation of the internet of things will only see more businesses want to leverage the success of software asset management. Finding a company that didn’t give in to the technological bug is nearly impossible.
Maybe they needed to see something that would work for them first. Technologies that most small businesses couldn’t afford are now becoming more widespread.
That might have come at the expense of human workers, but there’s no stopping this technological juggernaut. Trends aren’t just trends if they can help you make more money as a business.
Since SAM is all about optimizing the software, there’ll be a rise in the use of software asset management by many more businesses. Also, with the increase in outsourcing, we will see further development of contract management software.
That will mean more revenue for companies offering software asset management, as no business will want to be left behind. Report Ocean estimates the Software asset management market to cross the $5B mark by 2027.
So, we’d say it’s an excellent time to be in the SAAS market
4. There will be a greater emphasis on risk management
The rise in business technology has also seen an increase in cyber threats. Unfortunately, nefarious individuals only seem to double their efforts with increasing efforts to stop them.
That’s why better risk management will be a significant part of the future of software asset management.
The escalating prevalence of cyber threats has already led to a focus on cybersecurity in software asset management. However, these efforts haven’t fully contained the dangers cyber-terrorists pose.
SAM practices will be more focused on cybersecurity, as organizations must ensure that all software is secure and compliant with industry regulations.
Here are some of the risk management practices in the software asset management field that will define the field:
- The use of secure software deployment practices.
- Tracking software vulnerabilities ensures organizations have all the protection from threats.
- Use of sophisticated threat detection software to snuff out potential threats.
- Tracking and managing software vulnerabilities and patching them promptly.
5. Increasing use of unique finance models
If digitization changes how businesses manage their assets, it will also directly impact the financial models. Not only will the company have more flexible asset financing, but it will also help the business make better budgets.
A particular area in this will be important is in securing asset-backed securities. Considering the difficulty of accessing financial backing, alternative economic models couldn’t have come at a better time.
Digitization will also help businesses become a more favorable option for finance. Since it is an ongoing trend, financiers will want to see proof that a company is moving with the times.
This will force most businesses to revamp their software asset management systems to increase their chances of securing financial investment.
6. Environmental sustainability will have more influence on asset management strategies
The increasing focus on environmental sustainability has roped in most industries. It will have a more profound impact on software asset management in the future.
The calls for a more sustainable way to do business will only get louder as the effects of climate change further wreak havoc.
There will therefore be a need to manage software assets in a manner that won’t impact the environment negatively. A report by the Intergovernmental Panel on Climate Change (IPCC) Report found that it could be almost 30 years before temperatures stabilize. So, it makes sense if sustainability becomes a significant part of SAM.
The trend to reduce gas emissions by businesses will also affect software asset management since no department can resist it. Increased awareness of the software asset management techniques that respect the environment is a likely result here.
Besides that, most businesses will start choosing asset management tools with life cycles that won’t harm the environment.
Plan for your SAM future
SAM in business plays an integral role and thus is here to stay. These are some trends to expect in the future of software asset management in business. Digitization in the form of cloud computing, among other innovations, has become the norm.
It doesn’t matter if it’s the mainstream SAM platforms like Microsoft’s System Center Configuration Manager or more niche options like HP’s Enterprise Service Management Suite. You can be sure that the rise of cloud computing will affect SAM.
This digitization can only increase significantly, especially with better software technology. There will also be more focus on compliance as companies seek to avoid regulatory fines.
All these changes will force businesses to seek alternative financing models. With the information in this article, you should know what to do when making decisions about SAM in your organization.
Frequently Asked Questions
1. What is software asset management?
Software asset management is a branch of IT asset management dealing with managing an organization’s software and hardware tools. At its core, software asset management seeks to optimize software tools’ buying, utilization, preservation, and scrapping.
2. What trend will have an immense impact on software asset management?
Digitization shows signs of being the trend with the most significant impact on software asset management. Not only are new technologies coming up every day, but they are also making businesses more efficient in their processes.
It is difficult to put a limit on what technological advancements can do for any field and software asset management in business.
3. What will be the effect of artificial intelligence on software asset management?
Using AI in software asset management can help organizations to manage their software assets better, reduce costs, and improve efficiency and security.
AI will enhance decision-making by allowing faster data analysis, especially with repetitive tasks. That will enable companies to make more informed decisions on their software assets. AI can also be invaluable in identifying and preventing security threats.
About the Author
Cosmas Mwirigi alias Cosii-Riggz is a technology enthusiast and SAAS writer who helps clients understand products by explaining services for businesses. He has been featured on websites such as PV Magazine and Bitcoin Kenya. He likes traveling to new places and exploring what’s new on the internet.