Date:
15 Jul 2024
Author:
PREO AG
Licence Management
Getting the best out of everything from requirements planning to deinstallation
For many medium-sized and large companies, software is a crucial investment factor and asset without which business operations would not be possible. This applies in particular to widely used standard software, such as the Microsoft Windows operating system or MS Office applications, which are used daily in almost all organisational units. This makes it all the more important to take a holistic approach, from requirements planning to procurement and licensing, from the period of use to uninstallation. In order to do justice to the complexity of this process and to optimise the use of the respective software products, the range of tasks of Software Asset Management (SAM) is increasingly developing into Software Lifecycle Management, or SLM for short. The different forms of licensing alone, from classic perpetual licences to cloud-based software licensing and hybrid licence structures, require extended expertise, such as cloud financial management or FinOps.
In this blog post, we describe the possibilities of software lifecycle management and explain how companies can benefit significantly from the integration of used software licences. Using the example of the imminent end of support for current Microsoft products in 2025, we show the decisive advantages that will make companies and organisations fit for the future.
What does effective software lifecycle management involve?
Software lifecycle management is a holistic approach within IT that enables companies to actively manage the planning, procurement, administration, maintenance and renewal of their software assets. This enables them to continuously optimise their costs, gain transparency, minimise licensing and compliance risks and contribute to achieving sustainability targets within the scope of extended disclosure obligations. SLM looks at the entire software cycle in the company with the aim of licensing it in line with requirements and using it sustainably over the long term. If IT managers implement this concept in a well-founded manner, they maximise the business value contribution of IT.
Typical phases of software lifecycle management
The typical life cycle for a software product can be divided into six basic phases:
1. Inventory and requirements analysis
Collection and documentation of functional and non-functional requirements for the required software, quantification of the required licence scope
2. Procurement and contract conclusion
Market and provider screening, profitability scenarios, comparison of offers and conclusion of licence agreements
3. Provision and implementation
Installation and configuration of the software in the application environment
4. Configuration and test phase
Implementation of the software solution including development and programming of interface solutions as well as checking and validation of the software through various tests, for example functionality tests, integration tests or system tests.
5. Utilisation, maintenance and support
Troubleshooting, updates and continuous software optimisation as well as needs-based use within the entire company organisation
6. Decommissioning, sale and uninstallation
Sale of software licences that are no longer required, if possible, as well as uninstallation or safe decommissioning of the software
What advantages does software lifecycle management offer companies?
Greater efficiency and productivity
Standardised processes and clear internal responsibilities make it easier to configure interfaces and carry out development and maintenance tasks more efficiently. This starts with software procurement and the conclusion of licence agreements and ends with the possible remonetisation of used software licences that are no longer required.
Improving quality and conserving internal resources
SLM includes consistent testing and quality assurance processes that help to ensure that the software meets requirements and functions reliably, which increases user satisfaction and also relieves the burden on internal IT resources, for example by reducing support and training costs.
More effective requirements planning and cost control
Targeted needs assessment and strategic planning with continuous monitoring of licence costs and their development make it easier to predict and control them and avoid budget overruns.
Risk minimisation
Through proactive risk management and continuous monitoring, potential problems such as licence and compliance violations can be identified and rectified at an early stage before they have major consequences such as expensive relicensing or even fines.
Software Lifecycle Management - Example of the end of support for Microsoft products in 2025
During the course of 2025, support for the Microsoft products Windows 10 and the Microsoft Office 2016 and 2019 versions, which are widely used in many companies, will end. As part of active software lifecycle management, many IT managers or SA managers are concerned with the question of whether and how they want to use or replace existing software assets in the future.
With the exception of certain LTSC versions, Windows 10 ends both technical and support for security updates and bug fixes. For an additional charge, support for security updates can be extended for at least another three years. However, as part of these ‘Windows 10 Extended Security Updates’, or ESU for short, customers only receive security updates, but no new functions and no non-security-related updates. Depending on the existing volume licence agreement, requirements planning and the basic strategic direction - including a switch to the cloud and to one of Microsoft's enterprise offerings - it makes sense to carry out a profitability calculation before making a final decision.
Extended support for some Office products will also end in 2025. In addition to Microsoft Office 2016 and 2019, this also applies to Microsoft Exchange Server 2016 and 2019. Companies that continue to rely on perpetual licences and do not want to switch completely to the Microsoft cloud have the following options for continuing on-prem operation: On the one hand, switching to the current used version of Office Standard or Professional 2021. In addition to high price advantages for the used licences, the promotion of an active circular economy in the IT sector to reduce the corporate carbon footprint now also plays an important role. Alternatively, it may also make sense to wait for Microsoft Office 2024, which has already been announced for autumn this year. An on-premises successor solution for Microsoft Exchange is also planned for 2025.
If you still prefer on-premises operation and are looking for affordable licensing options for current Microsoft products beyond the upcoming end of support, the PREO licensing experts will be happy to advise you personally based on the current licence structure and future requirements.
On-premise solution used software - PREO expertise and a large selection
We are one of the pioneers in the European trade in used software and offer our customers a large selection of used on-premise licences from Microsoft, such as application software, operating systems and server licences. Take advantage of the free and non-binding initial consultation with PREO's licence experts and benefit from
- High savings on ongoing licence costs of up to 70 percent compared to the respective new version.
- 100 per cent legally compliant and audit-proof licence acquisition with maximum transparency in all processing steps, including complete documentation in the PREO licence portal ‘Easy Compliance’.
- Personal advice on all questions relating to licence transactions or the integration of used software licences into traditional network structures or hybrid cloud models.
- existing software licence management capacities for large IT infrastructure projects with thousands of workstations and cross-border locations.
- more sustainability in the IT sector by promoting an active circular economy and reducing the company's CO2 footprint. Speaking of sustainability: PREO is the first used software retailer to be listed with a scorecard by EcoVadis, the world's largest provider of sustainability ratings.
- The expertise gained from numerous reference projects that PREO has already successfully realised for well-known companies from various industries and sectors.
