Cost reduction and cost avoidance are priorities for any business, even more so in today’s climate. Software procurement is inherently complex, SCC’s approach helps simplify that complexity.
Software spans many technology types across a wide range of categories. Managing software and standardising your product portfolio, ensuring cost efficiency and software compliance is critical. This has led to ever increasing overheads and demands for software supplier management, strategic roadmap management and the requirement to manage, standardise and rationalise your software strategy.
Software procurement and renewal is becoming a big issue for many organisations and in many cases is a source of uncontrolled spend. From our experience there are a number key issues businesses are currently facing.
Key software procurement and renewal issues
Less than 60% of all software buying decisions are managed by a procurement function.
Strategic software sourcing
Less than 10% of organisations claim to have achieved excellence in strategic software sourcing – under-resourced and focused on other areas of the business.
Cost management typically extends to a maximum 80% of total software budget expenditure – a minimum of 20% is effectively left unmanaged.
Support and maintenance
Annualised support or maintenance contract renewals which are left in Tail status are not given the right level of attention and are often renewed year on year without due diligence or cost saving potential exploited fully.
How SCC can help
SCC can reduce software sourcing and software asset lifecycle management costs within your organisation. Our team of specialists will evaluate your current software procurement process, digital transformation strategy and governance.
Our extensive experience in procurement management enables us to efficiently assess whether the technology and contracts within your organisation contain the correct software products and commercials to meet the business needs. We will analyse areas which may impact your business such as market trends, license metric changes and price rises. This will help to secure the right software products, at the right time under the right contract terms.
For most organisations software spend is categorised into three distinct areas: strategic, multi-tier vendors and tail vendors.
We will work with you to understand your current software estate. From the software procurement process to your digital transformation requirements and ensuring future governance. SCC’s specialist teams will evaluate the technology and contracts in your business and assess whether they contain the right software products and commercials to deliver what you need.
SCC’s Cloud Consumption methodologies and tooling help optimise your current operations. We will ensure you have the correct processes, software tooling and services to deliver the greatest ROI.
Three key areas of software spend
Strategic vendors are typically the top 5-10 suppliers which are mission critical to your organisation. These make up approximately 60% of your annual software spend.
Mid-tier vendors are normally the next 20 vendors that play an important part within your organisation. These vendors are not necessarily mission critical and typically make up 25%-30% of your software spend annually.
Tail vendors represent the remaining software vendors within your estate and represent up to 10% of your annual software spend. Tail vendors typically contain upwards of 50 suppliers.
SCC have created a software asset lifecycle management system that spans all three areas of your software spend. The system is able to deliver a transparent, market aware process across all IT categories, validating user demand and best commercial position while helping you build your overarching software strategy. Key features include:
- Reducing costs and enhancing commercials with SCC’s buying power and partnerships
- Predict annual spend by quarter
- Provide increased compliance, optimisation and control of rogue spending with comprehensive management reports
- Understand current and proposed usage of software and plan next steps such as cloud services adoption
- Deliver enhanced and bespoke payment agreements that suit the CapEx or OpEx requirements of any business
SCC Software brochure
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