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When I first stepped into the SAM world, the iPad hadn’t been invented yet, Office 365 was still just a concept, and tablets were something your doctor prescribed you. Aside from the occasional challenges involving outsourcing, the concept of cloud was not something most Software Asset Managers encountered. Back then, Software Asset Management was largely about counting licenses.
Things have clearly changed significantly since the early 2000s, so in this article, I’ll explore exactly what has changed, what has stayed the same, and why.For those of us who have been in the SAM world for some time, the “good old days” of SAM are usually remembered as a time where compliance was king. ITAM as a whole, was largely considered to be a back-office function, with numerous, extensive spreadsheets used to keep track of license consumption.
At that time, Software Asset Management was typically responsible for the processes that either allowed or prevented users having access to certain software. This task was relatively simple, because everything was managed centrally, meaning that processes could easily be designed to ensure that everything new came across your desk. We lived by the rules of People > Process > Technology.
With the exception of a few niche products, software was mostly installed locally, and the license model was almost always perpetual – meaning that you purchased it once and owned it forever. This made life for SAM Managers somewhat simple, because costs were predictable, licenses were easy to track, and ITAM functions could simply look at what was installed in their environments. Back then, to be an effective SAM Manager, all you really needed was, some licensing knowledge, Excel capability, and good contract management/negotiation skills.
The undercurrent of change actually began in the 90s with the “Application Service Provider” (ASP) industry, which was the pre-cursor to SaaS. This was the beginning of shift towards reducing on-premise hardware costs. It was Salesforce, that revolutionised the industry by launching a web-based CRM platform. They are generally considered to be the first pure SaaS company.
Despite this, SaaS was still considered a relatively niche thing. Then, in 2011, everything changed with the release of Office 365. Perhaps I’m biased, because I was working at Microsoft during the release, but this is often where I consider the SaaS “boom” to begin. That’s not to say others didn’t lay the groundwork first, Gmail, Webex, Google Apps had all been around for some time, but it didn’t compare to watching one the most popular desktop software on the planet, be released as a SaaS product.
Microsoft clearly had a vision of the future, and yet, at the time of its release, I distinctly remember the reception being somewhat muted. At the time, it definitely didn’t feel like the beginning of a SaaS “boom”. Over time though, businesses became less afraid of the concept of SaaS. They were eventually drawn in by the low prices and promises of everlasting compliance.
Once businesses had accepted the idea of their data not living solely on-premise, this opened the door to everything else we see today. Whether we talk about Cloud, AI or SaaS, it all began with businesses assessing, agreeing, and approving their data to live under someone else’s roof. Those initial approvals and agreements, where presumably security teams weighed up risk against cost, are what paved the way to the world we are in today.
The rise of SaaS and Cloud was observed globally, but what many didn’t necessarily predict, is that the rapid rise of SaaS would lead to decentralised purchasing, SaaS sprawl and security risks. The subsequent rise of cloud would result in challenged processes, and a need for increased collaboration between infrastructure, SAM and finance teams. The building blocks were not in place, and many ITAM teams were struggling to keep their heads above water. ITAM and SAM, had to change.
Today, SAM is no longer about managing static, easy-to-see, assets. We work more broadly and strategically within an organisation to prevent the bigger challenges we face in this modern world. Gone are the days of managing this from a back-office position, separated off from the wider org, like we did 20 years ago.
SAM is now a cross-functional discipline that touches Cloud, SaaS, AI, Security, Architecture and Finance. Our focus is on controlling SaaS sprawl, reducing risk, and shaping digital strategy. As we are no longer able to function in a silo, we also need continued buy-in from senior leadership, and the wider organisation. Meaning that our processes also need to be frictionless to maintain that buy-in. No more red-tape.
It doesn’t stop there however, because those original responsibilities didn’t disappear, and on-premise software still exists. This puts SAM teams under more pressure than ever before. It seems the original theory that SaaS and subscription licensing, would somehow solve all the SAM challenges, ensure permanent compliance, and easy billing, was a myth.
The role of a SAM Manager looks very different today, and their responsibilities typically involve:
We often talk about how SAM has “evolved”, but the fundamental intention behind SAM hasn’t really changed at all. The intention is still to save costs on software, maximise the benefit you get from your software, stay compliant, build governance, and ensure visibility of all assets.
The evolution comes from how we achieve this. We need to be cross functional, and we need to be strategic so that we can remain effective. The goal is still the same, but the posts have moved, so to speak. The world of technology transformed drastically in the last 20 years, and so did ITAM. The real question is, what will technology look like in another 20 years, and will ITAM continue to keep up?
Kelly, LISA Product Manager, is known for transforming complex licensing, cloud economics and governance challenges into clear actionable strategies. With 15 years of ITAM experience spanning numerous vendors such as Microsoft, Oracle, Snow Software, Kelly offers a blend of commercial insight, and creative problem solving to the ITAM community.
