Make sure gym membership is the ONLY subscription you regret signing up to this year!

Make sure gym membership is the ONLY subscription you regret signing up to this year!

Florence Court · January 30th 2018

It’s happened to us all, we’ve started the new year determined to get fit and join the gym. We sign the membership forms, we have our induction but then after a few months that initial enthusiasm starts to fade. The problem is, as we’ve all found out, the monthly subscription usually doesn’t fade away at the same time we do!

More and more businesses are making full use of these subscription style payment models and software is no different. Worryingly, just like that gym membership, software subscriptions are charged regardless of usage!!!

Software sales reps will tell customers anything they want in order to get them to switch from one off license payments to subscription license payments. In the process of this switch the vendor will continually fail to capture data accurately or correctly. This failure nearly always leaves the customer with a deficit between what they have purchased and what they are actually using.

So, what we’re going to do is show you an example of just how costly software can end up being if you don’t license your software correctly. Simply by validating your software usage against your actual software requirements SAMcraft can allay any fears you have of a vendor audit resulting in a large, and unexpected, invoice.

Let’s focus on Office 365 and use a simple example to illustrate how SAMcraft can work with you to reduce your costs:

Microsoft Office365 subscription cost break-down:

RRP is £30 per month, per user for E5     – £360 per year per user
RRP is £17 per month, per user for E3     – £204 per year per user
RRP is £6 per month, per user for E1       – £72 per year per user

Company A has 12,000 employees but they don’t know which members of staff are using which applications and whether or not they actually need these applications. So, Company A, at the recommendation of their software sales rep, purchases 8,000 E5 and 4,000 E3 licenses at a combined cost of £3,696,000 per annum on subscriptions.

Now It’s unlikely that Company A could drop down to E1 licenses, so we will exclude that from this example, but what is established, through acquiring usage data, is that 1,000 users of E5 can function effectively with E3 licenses.

These changes to the subscription saved Company A an impressive £156,000 or 5% of their total subscription cost.

If you would like to find out more about this service and the many others SAMcraft provide, please feel free to visit our website on www.samcraft.co.uk or email us on nofear@samcraft.co.uk.


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