02 Jul 2009

Software costs 'a sticky issue for firms'

Ongoing software cost cutting could lead to problems for companies in the long term, it has been claimed.

James Rowlands, chief executive officer of Liken, said that reducing IT spending on IT infrastructure could lead to significant cost savings, but could also leave a business open to compliance issues.

As a result, Mr Rowlands argued that software asset management (SAM) could help a firm become leaner and more cost effective, but leave them open to the possibility of problems in the future.

"One of the principal drivers for people taking up a formal scheme is to provide them with a framework to actually try and ensure that at least their reputational risk is covered," he said.

Andy Pearce, managing director of FAST, noted that SAM and compliance become even more pertinent as organisations attempt to get their costs in check in a recession.

He argued that predictability and reliability should be key facets of effective data management during a downturn.