According to a recent Forbes article, nearly 38% of software is wasted, amounting to billions of dollars. In your opinion, what are the main influencing factors for this?
Billions of software waste is influenced by several factors. Firstly, understanding software usage analytics is crucial. It helps determine if the software is customized or off-the-shelf and provides insights into usage patterns. Secondly, contractual terms play a role. Organizations need to consider the maturity of their software usage practices and ensure contract terms align with their needs.
A recent Gartner article stated that 60% of enterprises will underestimate cloud infrastructure and platform consumption rates through 2024, resulting in higher costs and missed savings opportunities. How do you forecast software consumption, mitigate unforeseen costs, and maintain control over spend in your organization?
For forecast software consumption, its required to adopt a proactive demand approach by engaging with business stakeholders and groups intentionally. Additionally, you need to focus on leveraging contractual software levers such as tier pricing, renewal options, and activities like credits or termination terms. Managing spend with automated reports is crucial to maintain spend control, and in tandem collaborate closely with the finance department to ensure effective cost control.
Dealing with the ever-increasing complexity of enterprise software and cloud estate can be challenging. What major challenges do you face in this area?
One of the major challenges is conflicting timelines and demands from various business units. The contradictions make it difficult to enforce purchasing and finance policies consistently. The need is to strive for efficiency and accurate spend forecasting, it's not always achievable due to conflicting timelines. Another concern is the occurrence of unplanned software usage through unauthorized access or maverick budget allocation lacking proper tracking or awareness. To address these challenges, encourage creating transparency across the enterprise. The aim is to effectively manage each software license, identify valid requirements, and prioritize actions during lifecycle spend. Do not overlook collaboration with different groups, leveraging available resources, and accounting risks- especiallysecurity concerns.