Making Sense of Flexera's 2024 ITAM Report
Software audits aren’t just inconvenient—they’re often catastrophically expensive. As someone who’s guided organizations through countless ITAM challenges, I’ve seen firsthand how a proactive strategy can mean the difference between a seven-figure penalty and a clean bill of health.
The State of ITAM
Each year, Flexera* surveys IT professionals worldwide to gauge the state of ITAM. Their 2024 State Of ITAM report draws insights from 503 technical professionals across industries and regions. It reveals both the persistent challenges and emerging opportunities in the ITAM landscape.
In this article, I distill the report’s key findings into actionable steps to enhance your ITAM program. I recognize that implementing comprehensive ITAM changes requires skills and resources your organization may not have. If you need help, reach out to me.
Table Of Contents
1. Confronting Audit Penalties Head-On
2. Redefining Success Metrics for Your SAM Initiatives
3. Achieving Savings Through Effective SAM Programs
4. Enhancing Team Collaboration and Data Visibility
5. Leveraging ITAM’s Strategic Shift
6. Overcoming SAM Execution Challenges
7. Advancing SAM Maturity Levels
1. Confronting Audit Penalties Head-On
The report reveals that 22% of companies face software vendor audit fees exceeding $5 million over the past three years. Additionally, an alarming number of organizations (nearly 20%) lack awareness of the extent of these costs.
Actionable Insight: The journey to comprehensive cost control begins with visibility. Implementing a methodical ITAM approach will help pinpoint risks and stop overpayment. Start by understanding your current exposures and taking proactive steps to mitigate them.
2. Redefining Success Metrics for Your SAM Initiatives
The data shows a misalignment between current success metrics and actual savings possibilities. While compliance remains a focus, it doesn’t reflect the full savings potential.
Actionable Insight: Reevaluate your metrics. Certain metrics are required for ITAM to function, but they are not the data customers or business leaders need for their functions. Align KPIs and CSFs with more impactful financial outcomes, such as reducing hardware purchases and maintenance contracts. An immediate recalibration can reveal hidden opportunities for cost recovery.
3. Achieving Savings Through Effective SAM Programs
SAM programs have proven successful by enabling license reuse and negotiating better vendor contracts. The success of these programs hinges on delivering actionable data to decision-makers.
Actionable Insight: Invest in robust data streams within your organization. Breaking down silos and ensuring that the right information reaches the right teams can significantly enhance your SAM program’s effectiveness.
4. Enhancing Team Collaboration and Data Visibility
Interactions between SAM teams and other critical departments remain limited, hindering performance improvements.
Actionable Insight: Integrate your SAM efforts with broader IT and business operations. Improved interaction fosters better visibility into IT assets, helping you seize control of your environment efficiently.
(By the way, “Trustworthy data” is the cornerstone of ISO/IEC 19770-1. I delve into this concept further in my book, Rethinking Information Technology Asset Management, where I teach the framework of my pioneering methodology, Pragmatic ITAM.)
5. Leveraging ITAM’s Strategic Shift
The report notes a strategic shift, as more ITAM teams report directly to executives like the CIO or CTO, emphasizing their increasing importance within organizations.
Actionable Insight: Leverage this strategic position to boost alignment with key business objectives. Ensure your ITAM strategies are aligned with organizational goals for maximum impact. And ensure your KPIs and CSFs help tell their story to their fellow board members.
6. Overcoming SAM Execution Challenges
From optimizing software use to navigating new SaaS and cloud environments, organizations face several SAM hurdles.
Actionable Insight: Consider contracting independent SAM specialists (like me!) to address these issues swiftly. External expertise can bolster your team’s capabilities and facilitate quick resolution of complex challenges.
7. Advancing SAM Maturity Levels
Despite advancements, many SAM implementations remain immature, hindering effective optimization.
Actionable Insight: Conduct a maturity assessment to identify areas for improvement. Strengthening your implementation maturity will enhance license optimization and boost overall efficiency.
Summing It Up
The Flexera State of ITAM Report 2024 underscores the evolving landscape of IT asset management. Recognizing and strategically addressing the challenges can enhance your systems and achieve substantial financial and operational gains.
About Me
Most ITAM consultants come in, sell you their software, and then disappear. Your team is left to figure it out on their own. Sometimes, they do. More often, they never do.
My process is radically different. I strategize, design, and implement the right solution using the tools you already have. But I’m not done there.
I stand shoulder-to-shoulder with your existing team and coach them throughout the process. They learn best practices and tricks of the trade. They are then thoroughly equipped to make the positive impact permanent after I leave.
If you’re tired of ugly data, program failures, and audit penalties, we should talk. Reach out now to start transforming your IT asset management approach.
*Flexera is a leader in hybrid IT asset management (ITAM) and FinOps, providing organizations with the intelligence and data needed to make informed decisions about their technology investments. The company is dedicated to helping businesses maximize the value of ITAM, FinOps, SaaS Management, and IT Visibility applications and deliver actionable insights into the business technology landscape.
