Let’s face it, software audits are expensive. To ensure compliance, many IT organizations over license their software assets. This is a costly and wasteful practice within an already lean tech budget. Ivanti’s asset management platform can reduce this waste by properly managing the licensing life cycle. It also proactively identifies compliance issues before the audit is initiated.
Calculating audit cost and determining potential optimization savings, can contribute to the business case for an asset management solution. Let’s walk through an example to see how it works:
Cost of an Audit = [number of audits] x ([average hourly wage of IT Tech x average hours it takes to prepare for an audit] + [average true-up cost for license compliance]). So, for example if you conduct 2 audits per year, each consuming roughly 194 hours of IT time (average IT audit), and your average tech’s hourly wage = $50/hour – calculate and add to the average true-up cost for license compliance, which is typically calculated at $263k per 50 million in revenue – you will reach your cost per audit:
Cost of Audit example = 2 x ((50 x 194.15) + 263,000) = $545,415 *
Now, let’s look at the numbers for potential software savings. Answer the following three questions to calculate savings:
- What’s your annual IT budget? $50 million
- What’s your annual software spend? (typically 21.5% spend) roughly 11 million
- How many audits have you experienced in the last year? 2
Please reach out today to learn more about how ITAM can help lower your software spend. Dataseti, in partnership with Ivanti can deliver those savings and improve your overall asset management process!
on one hourly IT tech – approximation to demonstrate calculation