Software Maintenance Cost Reduction Strategies for Procurement and Operations

Your IBM® software spend could be significantly lower with the right expertise on call.

It’s fair to say any business or IT stakeholder would be thrilled to minimize a 70% to 90% drain on their company’s technology budget. On those grounds alone, taking a minute to identify successful IT cost-reduction strategies is a brilliant move – because that 70% to 90% is likely how much of your current tech spend goes to simply keeping the lights on.

Of course, cutting software maintenance costs down to zero isn’t a viable goal. But you can drastically reduce what you pay with a few easy steps, potentially freeing six- or seven-figure sums for innovation in the process.

Here are a few strategies you can use to reduce your IBM software budget.

Tip 1: Put ILMT to work

Physical and digital technology assets are the skeleton of your IT infrastructure, and their complexity scales quickly. Famously overworked and under-resourced, IT teams don’t always have time to step back from day-to-day processes to determine if those assets are truly fit for purpose in the current context, even though they are the people who are best equipped to monitor and who truly understand usage patterns.

However, there’s a good chance you might have software licenses you pay for but no longer need or properly utilize that have become lost in the shuffle. And that’s where tools like IBM® License Metric Tool (ILMT), which help companies determine what software products exist within the infrastructure, become a valuable resource.

Alongside putting potential vendor audit issues to bed, an internal usage analysis helps you identify products that inflate the maintenance budget. Many software agreements require customers to run the tool quarterly to ensure ongoing compliance. Likewise, it’s an important first step in determining tools that you currently pay for but might be under-utilizing, which can lead to drastic savings today and even larger ones as you plan out your roadmap.

Tip 2: Make license management a bigger part of your planning

As the old saying goes, “what gets measured gets managed.” Beyond simple usage, taking time to dive into the specifics of your license terms – preferably with the help of your legal department or an independent partner – is an essential software cost-reduction strategy that helps you get a grasp of your current software spend, your company’s realistic software needs, and ways to align the two.

Potential cost reductions can appear in a few different ways. When you have a full grasp of the ELAs your company agreed to, you’ve got a stronger position at the negotiating table and can avoid the questionable vendor tactics that might otherwise keep you overspending. The knowledge can also help your company avoid unpleasant findings during external IBM® software audits. Finally, taking a deep dive into licensing helps to consolidate current products and optimize staffing based on ideal usage, which, in turn, helps negate the many downsides of practices like shadow IT.

Tip 3: Get outside input on your current vendor relationships

The same vendor relationships that you greatly value in the early years can become a financial burden as the years go on. Contracts are often not revised as a business’ needs change, and IT teams will rarely know the going rate for other vendors in the market. Moreover, many vendors are known for initiating software license audits when the customer starts asking questions, or showing signs that they may be planning on moving away from the ecosystem, later in the relationship.

It’s worth seeking outside help for your software spend issues before you go to the primary vendor or seek help from a new one. Independent third-party software maintenance (TPSM) providers can reduce your software maintenance costs by up to 50% and advise on audit concerns, legacy cybersecurity issues, and other problems that add even more bloat to your software budget.

TPSM providers aren’t motivated to lock you into version updates and product upgrades you ultimately may not need; you can keep using the software you have for as long as you want while working with IBM® software maintenance experts who excel at helping customers achieve their goals with existing infrastructure.

Three benefits of lowering software maintenance costs

Achieving cost savings isn’t only about getting money back into your operational budget. It’s also a way to reduce waste in all forms within your IT infrastructure and processes. Sometimes it takes an outsider’s perspective to see how operations might be missing key elements that can increase the chances of success and growth.

Here are three advantages of cutting your maintenance spend.

More efficient IT infrastructure and runway to innovate. By upgrading outdated computing systems and removing under-used software licenses, business leaders can streamline in-house IT functions and build more runway for innovation.

Less OEM lock-in. Vendor lock-in is an ongoing concern for companies with established on-premises infrastructure. Along with budget savings, software cost reduction strategies put you in a better position to define an IT roadmap that suits your business needs and processes – not a prescribed upgrade path.

Ability to keep older versions of software that works. Third-party software maintenance providers offer an expert eye to help identify areas of waste within your IT infrastructure and find solutions. They also excel at keeping the software you currently have working at its best. Instead of locking into pricey ELA renewals, you get the opportunity to keep only the software and associated versions you want to use — indefinitely.

Originally published October 7, 2021
Updated February 2, 2024

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