I studied Economics at University many moons ago. So I felt a mixture of both fascination and nostalgia when Gartner Analyst Stewart Buchanan started using demand and supply curves to describe the business value of SAM.
I attended the London leg of the Gartner European briefings tour yesterday.
I got the impression that these events are for Gartner prospects to experience a taster of what the organization has to offer. As you would expect, there was a bit of showboating of Gartner’s capabilities but also considerable value.
In particular, I was intrigued by Stewart’s advice to use market forces to drive software licensing negotiations.
In a nutshell – Forget about what is available? What do we ACTUALLY need?
This makes a very compelling business case for SAM using this approach. Let’s hire a core team of 3 x SAM Specialists to work on the true requirements for just one large enterprise contract. Let’s say they cost the business £100K each and they result in £1M saving on one contract along. You do the math (I spoke to a SAM specialist yesterday who identified £5M savings in one year on his own).
This may all be procurement 101 – but procurement don’t (typically) know software, know software licensing or software demand and capabilities – so make sure they don’t muscle in and take all the glory!