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Software Asset Management (SAM): licence compliance and cost optimisation

20 October 2026 · 7 min read · Sanjeev Soni

Software is often the largest and least visible IT cost. SAM keeps you audit-ready and stops paying for licences nobody uses.

Why SAM is different

Software licences are governed by complex contractual metrics — per user, per device, per core, subscription or consumption. Compliance depends on matching entitlements to actual deployment and usage.

Managing audit risk

Vendors such as Microsoft, Oracle, Adobe and SAP regularly audit customers. An Effective Licence Position (ELP) — entitlements versus deployments — lets you respond confidently and avoid true-up penalties.

Optimising spend

Harvest unused licences, right-size SaaS subscriptions, remove shelfware at renewal, and standardise on approved software catalogues. Typical SAM programmes recover 15–25% of software spend.

Getting started

Collect purchase and contract data, run discovery on installed and SaaS usage, build the ELP for your top five vendors by spend, and set a renewal calendar owned jointly by IT and procurement.

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