Financial Services/Banking/Insurance Industry Companies. A TechValidate survey of 269 Flexera Software® license optimization customers included 48 customers in the financial sector. With annual software spend between $1M and $10, and some in excess of $10M, these are public and private companies located in the United States, Europe, Asia, and Australia. The companies range in size, with the majority being large, global enterprises – Fortune and Global 500 / large enterprise (36), medium enterprise (9), small and mid-size businesses (3).
Challenges and Needs:
Conditions in the financial sector today are dominated by rapid shifts in technology and customer expectations, stringent regulations, and steep capital requirements to stay in business. In the context of software licensing, the cost and risk of expensive software audits and the financial impact of true-ups that result from software audits are foremost among the challenges facing these companies. Software audits also produce operational impacts, especially when resources across the organization are diverted to support the audit, productivity takes a hit because other projects are delayed. In addition, financial services companies are confronted with tracking, managing and understanding license entitlements, and issues managing vendor relationships and contracts.
Overspending on software licenses is also a chief concern, often the result of immature software asset management (SAM) programs and the inherent complexity of software licensing. In fact, IDC estimated that software license complexity will indirectly cost organizations an average of 25% of their software license budgets in 2016. Time-consuming manual processes for managing the software estate – typically spreadsheets located in various departments that often contain inaccurate and incomplete data – are impacting productivity and driving up operational costs as well.
Financial services companies in the TechValidate survey selected FlexNet Manager® Suite for Enterprises solution from Flexera Software. FlexNet Manager Suite embodies next generation hardware and software asset management for desktop, laptop, and server hardware, as well as software from over 16,000 vendors and more than 192,000 applications. Automated capabilities analyze inventory data, application usage, purchase order data, license entitlements, and contract terms to determine a license compliance position and optimize license consumption. Leveraging the automated processes native to FlexNet Manager Suite and utilizing Flexera Software consulting services enables financial services and many other enterprise organizations to save on license purchases, audits, renewals, and true-ups, while reducing time and effort. FlexNet Manager Suite provides asset management across the entire product lifecycle to provide faster time to value and maximize return on investment.
With the cost of software audits as one of the principal challenges, it is no surprise that in the TechValidate survey, 50% of the financial services companies identified audit cost savings as one of their top benefits. As a result of increased access to usage data, software reuse and license reclamation was also cited as a key benefit, along with labor savings due to automation of the asset management process. With increased visibility into what is installed, what is owned, and what is used, these companies have also realized reductions in software maintenance costs and are better situated to renegotiate more favorable software contracts with their vendors.
The Need for Software License Optimization
The financial sector is a highly regulated industry, concerned with all types of compliance, including license compliance. This is particularly acute for Global 500 companies within this sector. With vast and complex software estates that are typically distributed across geographies and technologies, the need for Software License Optimization is essential as companies move to mobile banking and next-generation platforms and services, including the cloud. It is increasingly critical for companies to gain visibility and control of IT assets, to know what licenses are owned, what licenses are being used, what the software contracts say, and when they are up for renewal. With a very low risk tolerance and pressure to reduce annual software spend, companies are deploying Software License Optimization solutions to maintain license compliance and achieve significant cost savings.
TechValidate survey data reveals multiple business challenges these companies were experiencing before adopting FlexNet Manager Suite for Enterprises. The leading challenge is “tracking, managing, and understanding license entitlements” followed closely by “time-consuming manual processes for managing the software estate” and “cost and risk of expensive software audits”.
Facing the cost and risk of software audits as a key business challenge is supported by other research. According to a survey by Flexera Software “2016 Key Trends in Software Pricing & Licensing Survey Report” (The State of the (Software) Estate: Waste Is Running Rampant in Enterprises.), 65% of respondents report of having at least one software audit in a 12 month timeframe, with 23% reporting 3 or more audits.
In the same survey, 61% of all respondents report of being audited by Microsoft, 33% by Adobe, and 30% by Oracle. Financial Services companies, like all medium and large enterprises, have a high likelihood of facing software audits due to the ongoing trend in the industry.
Four primary software vendors, Adobe®, IBM®, Microsoft®, and Oracle® – with some VMware®, SAP®, and Symantec™ – dominate the software estates for most companies in this industry. In the TechValidate survey question “What Vendors do you manage with FlexNet Manager Suite?” unsurprisingly, 96% of customers in the banking, insurance, and financial services industry listed Microsoft, for example.
FlexNet Manager Suite Provides Faster Time to Value
Faced with the unique challenges of their industry and the challenges of Software Asset Management in general, financial services companies look to Software License Optimization solutions with a proven record of success. In their pursuit of optimal available solutions, TechValidate data reveals that 20% of respondents in the financial services sector considered using a home grown application, and 24% considered managing their software assets within their ITSM tool, but ultimately selected FlexNet Manager Suite.
Enterprise companies turn to Flexera Software and select FlexNet Manager Suite because it is a comprehensive, next generation solution for Software Asset Management, license compliance, and Software License Optimization. According to the Senior Manager of Global Procurement Services at a Global 500 Banking Company, “FlexNet Manager Suite for Enterprises provides complete visibility of what was previously provided only in part. It helps to clarify gaps in the processes of the bank, which dramatically improves software reuse and reduces audit costs. Also, it provides a platform for software brokering between departments.”