How better SAM helped a telecom company save 20% of cloud spend

A multinational telecommunications company with operations spanning Europe, Asia and North America was looking at a strong growth trajectory fueled by both organic expansion and strategic acquisitions. This, however, also led to a rapidly rising need for effective IT asset management solutions. The company recognized numerous opportunities to enhance cost effectiveness through software license management strategies and software asset rationalization, which it could achieve with software asset management (SAM).

The absence of a formal SAM framework was exacerbating the difficulties in overseeing its software asset portfolio. With numerous software vendors, diverse licensing agreements proved to be a persistent challenge. The reliance on manual processes to track and manage software licenses resulted in inefficiencies, errors, and unreliable inventory and entitlement data. The company needed effective vendor management in IT asset governance to address these issues. In addition, it also recognized that improved visibility into software and cloud expenses would make its budgeting and cost control efforts more effective, and result in reduction in IT operational costs. 

To meet its multiple efficiency objectives, the company needed a thought partner capable of providing a solution to manage the implementation of automation solutions for IT software and hardware management. At the same time, it was essential to enhance the maturity of its IT operational processes in order to support acquisitions, cloud migrations and implementing of IT cost reduction techniques.

The multinational telecommunications company collaborated with EY to transform its SAM process while implementing improved IT governance practices. Together, the two organizations developed a customized SAM vision and automated IT asset management reporting using the EY SAM platform. The focus was on three key areas:

The transformation began with standardized IT asset lifecycle management and SAM optimization for consistency and oversight. Deploying the SAM platform enabled real-time insights, proactive asset management and software license optimization, leading to significant cost savings. In addition, the governance framework reinforced enterprise software compliance and continuous improvement, enabling high SAM maturity levels.

The company’s key initiatives included categorizing vendors by risk, streamlining compliance reporting, identifying remediation opportunities, supporting audits and enhancing cloud cost optimization. They also established a hardware asset baseline for both compute and non-compute devices to align with a comprehensive IT asset lifecycle management approach.

The enhanced IT governance practices led to additional support to M&As, risk mitigation, aligning acquisitions and streamlining integration with expert guidance on cultural and technological transitions. With a robust audit defense strategy, the telecom company could ensure compliance with major vendors licensing terms, while regular entitlement and deployment assessments prevented compliance issues during audits. In addition, collaborating closely with its security department, the company could address the issue of unauthorized software installations.

The transformation streamlined compliance reporting, enabled early risk detection and improved cloud service utilization, resulting in substantial cost savings and stronger financial governance. The comprehensive approach led to a transformed SAM process, enhancing the company’s operational efficiency while supporting its strategic financial goals. 

The telecom company reduced its cloud expenditure by 15% to 20% as a result of the engagement’s predictive resource rightsizing and workload management. Enhanced efficiency in license and cloud expenditure led to substantial savings. The company’s overall financial performance got a boost as it identified cost-saving opportunities, effectively managed unauthorized software usage, and controlled under-utilization.

The company also elevated its SAM maturity model from level 2 (basic) to level 4 (managed). The SAM platform provided enhanced control, real-time monitoring, and improved efficiency in managing software assets. 

The organization also established a comprehensive IT asset baseline, effectively mitigating compliance risks while enhancing the value of its IT investments, bolstering its overall growth and market competitiveness. While EY assisted in cloud optimization and transition initiatives, the company generated detailed usage analysis reports based on in-depth analysis of cloud service consumption, monthly reviews of Azure expenses, and identifying significant cost-saving opportunities. With this approach, the company achieved greater visibility and alignment as cloud usage data was mapped to project teams for more effective budget management.

To sustain and enhance its SAM maturity model, the company’s future strategy will center on continuous improvement, strategic technology investments, and enhanced vendor management. The organization further aims to derive more value by integrating SAM with broader IT governance frameworks and expanding its reach to emerging technologies such as cloud services and the Internet of Things (IoT). Additionally, the company plans to further refine its risk management approach and adopt leading practices in the industry and in IT governance through benchmarking, ensuring that its SAM remains robust, compliant, and strategically aligned with overall business objectives.