The Benefits Of A SAM Blockchain Solution
Software Asset Management In The Age Of Blockchain
As an IT director, ITAM lead, or SAM manager, you face enormous challenges. Our SAM tools and techniques are woefully inadequate due to the size and age of the market, the constant threat of software audits, and the rising menace of Shadow IT (which is real). As an ITAM coach and consultant, I am intimately aware of these problems, and I believe SAM Blockchain technology has the potential to make our tools do the work they promise.
First, a quick primer:
How SAM Fits Into ITAM
ITAM (Internet Technology Asset Management) allows you to plan and manage the entire lifecycle of all of your IT assets. ITAM enables you to maximize value,control costs, manage risks, meet regulatory and contractual requirements, and make the right decisions.
SAM (Software Asset Management) is an aspect of ITAM. In theory, SAM enables you to administer effectively, control, and protect your software assets by managing their acquisition, development, release, deployment, maintenance, and (eventual) retirement. Your organization should be able to cut spending for software licenses by as much as 30% as a result of implementing a strong SAM program. The problem is, most SAM programs fail.
Why Do SAM Programs Fail? Blame The 3-Headed Monster
In 2021, Deloitte published an IT Asset Management Global Survey, and the results were disheartening. 84% reported that their organizations lack a truly effective ITAM initiative. Six out of ten said they’ve yet to make ITAM a self-funded program. And nearly half acknowledged they’re unlikely to do so in the next two years. Why?
The answer can be found in what I call The 3-Headed Monster Of SAM. There are three groups of participants involved in SAM. Each one has their own unique goals and agendas and cannot trust the other two to not undermine their goals:
- #1: Software Publishers: The goal of software publishers is to generate revenue above all else. Revenue enables them to develop innovative products, stay competitive, and make their shareholders happy.
- #2: Corporate Customers (You): The goal of corporate customers is to acquire the best, fastest, and most cost-effective IT services and achieve an excellent ROI over the lifetime of each product.
- #3: Corporate End-Users: The goal of the corporate end-users is to be able to use the latest and greatest software so they can meet and exceed the requirements of their positions.
The software publishers are worried about piracy; the corporate customers are worried about cost, compliance, and audits; and the corporate end-users just want to get the job done without interference.
A SAM Blockchain Solution Could Be The Answer
SAM Blockchain could solve this problem because the Blockchain has been designed to foster trust between participants. Here’s how:
- Smart Contracts: A key feature of the Blockchain is the Smart Contract. Smart Contracts contain automated instructions and rules stored within the Blockchain ledger. They guide the formation of block data without user intervention. As a corporate client, you could stop worrying about going out of compliance – when you need a license and don’t have one, the Smart Contract would automatically generate a purchase.
- Distributed Ledgers: Every participant has access to a copy of the Blockchain ledger, and all transactions are automatically shared between them. Everyone can instantaneously see when a transaction is happening. SAM Blockchain would allow software publishers to see which version of their software is being used.
- And the ledger could be encrypted and limited – publishers would know how many of their licenses are being used at all times but they can’t view exact names, the nature of the work, IP addresses, etc. – all of which are cyber-security risks.
- Immutable Records: (Immutable: unchanging over time or unable to be changed.) With the Blockchain, every action is encrypted in such a way that if a participant attempts to alter a record after it has been entered and accepted into the distributed ledger, all participants and nodes are instantly alerted.
You can see how SAM Blockchain could foster trust between participants that inherently can’t trust each other.
The Benefits Of SAM Blockchain
Here’s how the Blockchain would benefit each head our 3-Headed Monster:
- For Software Publishers: It’s been estimated that a whopping 40% of software publisher sales revenue comes from software license audits. That 40%, however, is expensive – considering how much they have to pay auditors to claw back the money.
- For Corporate Clients: Software license audits force you to stop what you’re doing and scramble. SAM Blockchain would save you time, energy, and money.
- For Corporate End-Users: Employees would no longer have to worry about getting in trouble in order to do their jobs.
It’s painfully apparent that our current SAM tools and techniques aren’t delivering on their promises. We still deal with untrustworthy data, software breaches, and painful audit penalties. I believe a SAM Blockchain solution could be the key to solving the underpinning problems and trust issues that cause most SAM and ITAM programs to fail.
If you’re building an ITAM team or want to improve your ITAM, an ITAM coach can make your job easier. To find out more, click here: ITAM Coaching.