On this page you will learn:

- Why we all pay too much for software

- What can be done to improve matters

For one reason or another, we all pay too much for software.

Whether your organisation has 5, 50 or 50,000 machines we can guarantee that you are paying too much for one of the following reasons:
  1. Purchasing from the wrong source at the wrong price.
  2. Purchasing under the wrong licence agreement.
  3. Not purchasing as one organisation but as many disparate business units.
  4. Procuring more sophisticated software than is required.
  5. Not taking advantage of Free Microsoft licences
  6. Not recycling unused or retired licences.

Wrong source at the wrong price
As you see on the next page - The software market - there are a lot of mouths to feed in the software world.

Quite simply, everyone has to make a margin, which is why we advise you to purchase your software wherever possible directly from the publisher or The right reseller

The wrong licence agreement
The price levels of licence agreements can vary by 30%+

In Purchase the right way we show you which licence agreements are the best to purchase under for your size of organisation.

Negotiate everything
There are many factors that you can negotiate when purchasing software that you should be aware of - Buying tactics

More sophisticated than required
Often we see organisations that have deployed overly sophisticated software to their machines and users.

The immediate consequence of doing so is that your organisation is then committed to unnecessary licence costs, whether the functionality of the software is used or not.

In this context it is easy to see where extensive cost avoidance and possible savings can be gained.

We look at dealing with this issues in more detail in Business justification and Cheaper products

If your organisation has never focussed on licensing before, then the first few steps will reap huge rewards, all of which can be found in Reduce software costs

Free Microsoft licences
Of course Microsoft never give anything away, but there are elements of Microsoft licensing that will grant your organisation licence entitlement at no extra cost.

To learn of these details see reduce Microsoft costs

Do you recycle?
We are now dipping a toe into the world of software asset management rather than just purchasing.

The principle is simple enough.  If a user doesn’t require a piece of software anymore, or a machine is retired, then removing the software and passing the licence entitlement to another user means that a new licence doesn’t have to be purchased.

The key to making this happen is to ensure that communication happens between the right people in your organisation.  We explain who needs to know what in It's good to talk

We all pay too much for software when we do not focus on the basic points detailed above.

Often we see organisations simply pick a product without knowing if it is actually necessary and accept the price from the first reseller they speak to.

The first steps of software asset management are this simple, for example by only purchasing the software your organisation actually needs (Business justification) you can easily save serious amounts of money.

If you want to know how then read our How to do SAM section and you should start with Reduce software costs

We now look in depth at the software market warts and all...