In May 2019, Amalgam Insights attended Knowledge 2019, ServiceNow’s annual end-user conference. Since ServiceNow’s founding in 2004, the company has evolved from its roots as an IT asset and service management company to a company that supports digital workflow across IT, HR, service, and finance with the goal of making work better for every employee. In attending this show, Amalgam Insights was especially interested in seeing how ServiceNow was evolving its message to reflect what Amalgam Insights refers to as “Market Evolvers,” companies that have gained market dominance in their original market and taken advantage of modern mobile, cloud, and AI technology to expand into other markets. (Examples of Market Evolvers include, but are not excluded to, Salesforce, ServiceNow, Workday, Informatica, and Tangoe.) Continue reading “Knowledge 2019 and ServiceNow’s Vision for Transforming the World of Work”
A generation of IT has been trained on the practice of Software Asset Management, which has been built on the focus of audit-based license agreement compliance. As the enterprise software market has moved to SaaS, the need for regular audits has decreased because of a fundamental shift from vendor-driven contract enforcement to client-friendly policies for adding new licenses and services.
As software shifts from being a license-based capital expenditure asset to a usage-defined operational expenditure service, the foundational nature of software management must change as well. Rather than managing software as a sunk cost with the goal of squeezing the maximum utilization out of an initial license before the software becomes obsolete, companies must now treat Software as a Service as a constantly renewing and updated functionality aligned to specific business roles.
The trade-off for the ease-of-use and support for SaaS is that enterprise software contracts are harder to negotiate because a number of buyers may end up purchasing SaaS and the purchase cycle is built to support consumerized purchases through P-cards, expense accounts, and line-of-business operational budgets rather than through a formal IT process.
As a result, the traditional world of SAM compliance and top-down procurement is being replaced with the need for cost management solutions that focus on: