The Importance of Consolidating SAM and FinOps for Optimal Cost Management and Governance
As organizations continue to undergo digital transformation and rely more on software and cloud services, the need for effective management and optimization of these assets becomes crucial. Software Asset Management (SAM) and Financial Operations (FinOps) are two disciplines that play a significant role in maximizing value and minimizing costs in this evolving technology landscape. Despite their interdependencies, SAM and FinOps often operate independently, in different silos and with limited resources, eroding their value-maximization potential.
Understanding the impact
As per Gartner report, senior executives are starting to challenge the value of digital transformation, having encountered dramatic growth in software and cloud usage without adequate management and optimization. Where software asset management (SAM) and FinOps do exist, they have limited influence or authority to optimize consumption and value across a growing, increasingly complex set of environments. Despite their interdependencies, SAM and FinOps often operate independently, in different silos and with limited resources, eroding their value-maximization potential.
Key considerations
To address these challenges and enhance visibility & understanding while maximizing value and minimizing costs, executive leaders should consider the following recommendations:
- Consolidate SAM and FinOps: Consolidate and mandate SAM and FinOps disciplines to drive enhanced visibility and understanding that maximizes value and opportunity while minimizing cost and risk. Create an integrated unit that profits from the synergy of both disciplines to deliver optimum benefit across an increasingly complex technology environment.
- Adequately staff the consolidated functions: Ensure that the consolidated SAM and FinOps team is equipped with skilled team members who can effectively collaborate with key stakeholders and eliminate unproductive cost overruns.
- Mandate SAM and FinOps disciplines: Establish a mandate for SAM and FinOps as key mechanisms to offset material risks of continually escalating costs. Create authorization, empowerment and a culture that drives action and realization from SAM and FinOps optimization and mitigation recommendations executed throughout IT.
By 2025, it is predicted that 50% of organizations will unify SAM and FinOps into a consolidated discipline that delivers portfolio cost management and governance. SAM and FinOps are critical disciplines for managing software and cloud costs effectively. By consolidating these disciplines, organizations can achieve enhanced visibility, optimize consumption and minimize unnecessary cost overruns.
To fully understand how you can increase collaboration between SAM and FinOps, and enable delivery of maximum value across your technology portfolio, we believe you should download the full Gartner® report: Target Software and Cloud Costs by Uniting Software Asset Management and FinOps.
Gartner, Target Software and Cloud Costs by Uniting Software Asset Management and FinOps, Stephen White, Yoann Bianic, Stewart Buchanan, 6 April 2023.
Disclaimer: Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner’s research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.
Gartner is a registered trademark and service mark of Gartner, Inc. and/or its affiliates in the U.S. and internationally and is used herein with permission. All rights reserved.