By John Lipsey
KPMG LLP, the U.S. audit, tax and advisory firm, and Flexera Software, a leading provider of Software License Optimization solutions, announced an alliance on November 10th, 2014, to offer holistic Software Asset Management and License Optimization software and services to enterprise customers.
The alliance leverages KPMG and Flexera Software’s strengths in software license management technology, services and processes to help companies improve their operational capability, effectively manage their software license estate, help optimize spend and reduce license compliance risk.
“Currently, companies spend as much as 25 percent of their IT budgets on software and find themselves under increasing pressure to identify and eliminate waste and risk around this critical corporate asset,” said Paul Baguley, Principal, Contract Compliance at KPMG. “KPMG has a dedicated network of hundreds of software licensing and Software Asset Management professionals around the globe, and our alliance with Flexera Software allows us to help clients effectively manage their IT software budgets and more accurately plan for future needs.”
In an effort to discover the burden software licensing places on companies, Flexera Software and industry-analyst IDC recently concluded research on software audits and compliance risk and software applications that were purchased but not used, known as “shelfware.” The research revealed that 85 percent of organizations were non-compliant with some software license agreements, and nearly all enterprises (96 percent) conceded that they owned “shelfware.”
These aspects pose a significant risk to businesses as, according to the reports, nearly two-thirds of enterprises (63 percent) were audited by their software vendors in the last 18-24 months. As a result, 56 percent of companies researched were assessed “true-up bills” that cost, in some cases, $1M or more.
“Enterprise software counts among the most difficult of assets to manage for any organization. The sheer diversity of software titles, the complexity of licensing terms, the evolving environments in which the software will be run, and constantly changing workforces represent just a few of the challenges,” said Jim Ryan, Chief Operating Officer at Flexera Software. “Effective license management requires top-notch people, processes and technology. Flexera Software’s market-leading Software License Optimization solution and KPMG’s high-quality service offerings provide a one-stop-shop for organizations seeking to reduce waste and risk in their enterprise software investments to help ensure they’re only buying what they need and using what they have.”
The alliance combines KPMG’s contract compliance experience and methodologies with Flexera Software’s FlexNet Manager Suite for Enterprises to help enterprise software customers proactively manage their software assets – and budgets – from procurement through to retirement. Through the alliance, clients can increase visibility into software application deployment, entitlement, and usage; strengthen contract negotiations with vendors; reduce risk of software compliance audits; and gain continuous control of software with repeatable, automated best practice software asset management processes.
Flexera Software’s Software License Optimization solution will also seamlessly integrate into KPMG’s existing alliance-based offerings with ServiceNow to provide a comprehensive IT asset management solution.
To learn more about managing the full lifecycle of your software assets, please view our on-demand Webinar: Managing the Full Lifecycle of Your Software Assets. Hear about industry trends and best practices from Gartner analyst Patricia Adams.