I’ve noticed that SAM solutions are focused on managing inventory and measuring utilization as a means of driving optimization savings. And I have also noted a trend that suggest the the SAM provider may also offer outsource functions related to assisting the end-user in optimizing the licensing. I am assuming that means supporting removals. What I am not seeing is any mention of invoice audit, review or processing.
I suspect that has not been developed by the providers because that is whole different kind of cost and development effort. It also may have a lot to do with license invoices typically being annual as opposed to monthly.
My concern here is two fold. I have been in the IT spend management for three decades (though primarily Telecom) and I see the purported savings as an “Opportunity”, But I also see the exclusion of the Invoice piece as a red-flag issue for Internal Auditors given the cost involved. Would like to have some discussion around this issue.
Steve Perkins
Steve, I see invoice reconciliation as a key part of the reconciliation process as offered by partners delivering managed services. Typically, SAM specialists would delivery a task list of removals or config changes based on their work, so sometimes the success of the SAM partner is based on their ability to work successfully with internal stakeholders.
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That is kind of what I see emerging as well. I think SAM and ITAM ought to thrive if they can figure out the details on collaborating with third parties on the invoice piece for sure. But my sense of it is that for it to work well the breadth of portfolio has to be more than just Oracle or Office 365.
Completely agree with Martin, that the success and effectiveness of the managed services partner’s SAM objectives on behalf of the client is greatly dependent on how well the client’s internal stakeholders work effectively with one another. Often the client provides a single point of contact through which all communication must flow, including requests for actions to be taken by SME’s within the client organization. The ability to reach out and interact directly with these SME’s increases the speed and effectiveness of the partner’s deliverables. A well-crafted SOW can usually define these communication components, as well as increase the quality and effectiveness of the engagement as a whole.
Regarding the incorporation and consideration of invoice information in an overall SAM optimization effort - I believe it would be difficult to accurately provide cost reduction analysis without using the actual costs sustained by the organization, although using a consistent source for list pricing can also substitute for actual. However, for measuring compliance, the proof of purchase information is an indispensable component. This still is dependent on the client organization’s ability and willingness to locate and share this information with the partner.
Accurate record-keeping is vital, as we both know from 30+ years in the industry. If this is not a built-in key component of both the client and partner’s business model, the entire ITAM/SAM venture will prove to be much more work intensive and ineffective.