October 27, 2022
According to a Flexera report, data center software accounts for more than a third of total spending on desktop software, with about a third of total annual investment in data center software wasted.
Software as a service (SaaS), a software licensing and delivery model where software is licensed on a subscription basis and hosted centrally; Infrastructure as a Service (IaaS), a cloud computing service model where computing resources are provided by a cloud service provider; and Platform as a Service (PaaS), a category of cloud computing services that enables customers to deploy, instantiate, operate and manage a cloud computing platform, are among the funds wasted.
As demand for external IT services increases, ITAM software teams are seeing a surge in spending and waste in their use of SaaS to harmonize contracts with software needs, resulting in redundancy and unnecessary app spending.
Five hundred ITAM executives and practitioners from around the world reported on their organizations’ ITAM adventures, how they get used to ITAM challenges as their IT environments change and found that there was increased spending and wasted resources.
In order to address the increasing expenditure on cloud and cloud-related services, many ITAM teams are calling for inclusion in their organization’s cloud center of excellence (CCOE), thereby expanding their role (and visibility) within the organization. Inclusion in CCOE gives ITAM practitioners a more prominent place at the table when it comes to making decisions about software spending in the cloud and other non-on-premises IT services. In fact, more than 80% of global ITAM respondents said that a member of their team participates and/or contributes to their CCOE team.
According to the report, the struggle to implement the best governance practices for the deployment and spending of SaaS remains a challenge. Only 35% of companies have full visibility of their IT assets and their impact on business operations.
The sources for this piece include articles in CIODive.
