Public Sector: How to reduce cloud and software spend without impacting public service delivery

ITAM in the public sector is an evergreen topic of conversation here at Livingstone Group.

Since the financial crisis, there has been a near-constant squeeze on public budgets, which has placed expenditure on IT – in particular, on software – firmly under the microscope.

More recently, public sector organizations have had the complication of the pandemic to deal with. On top of now having to contend with leaner budgets, they have had to conjure up ways to deliver a wider range of projects to meet public demand for digital services, all in the shortest possible timeframes. The answer for many organizations has been to accelerate their migration to the cloud.

While a greater reliance on flexible cloud-based services has undoubtedly enabled these organizations to carry on delivering services in a more cost-effective manner – i.e., without the need for one-off CAPEX investments – it does create some new ITAM-related challenges. Afterall, while it is relatively easy to sign up to new cloud contracts, it is considerably harder to manage the spend on these services over the medium- to long-term.

 

How Livingstone Group can help

With vast software estates, complex commercial arrangements with multiple vendors, and an increasing dependency on variably-priced cloud services that can even be billed by the second, ITAM and procurement professionals in the public sector can be forgiven for wondering where to start when it comes to right-sizing their estates and eliminating unnecessary spend.

 

Our latest eGuide explores the Four Ways to Reduce Software & Cloud Spend in the Public Sector, and has been created to provide some much-needed focus. It covers:

  • How to create an accurate Bill of Materials, which defines an organization’s software and cloud needs, not just at the start of a new contract, but for its entire duration. This is a key program component when eradicating overspend.
  • The need to understand what makes your cloud or software vendor tick. Each supplier will enter contract negotiations with their own specific set of objectives and will handle proceedings according to their own playbook. Knowing these characteristics will place your organization in stronger position at the negotiation table.
  • The importance of adding detail to your tender documents. Public Sector tender documents often focus on initial need rather than long-term value. Thinking long-term is of particular importance when embarking on a new cloud deployment. Variable usage costs mean expenditure can rise unexpectedly and rapidly, and ultimately bear little or no resemblance to the figures quoted in the initial tender response.
  • The benefits of an ongoing ITAM governance program. Robust, enforceable policies around what services and solutions can be deployed – and by which user groups – will prevent costs from rising during the term of the commercial engagement. Again, the shift to the cloud has made good governance more important than ever before. It has never been so easy for a user to deploy tools without the IT department’s knowledge or for whole departments to exceed their usage entitlements, triggering additional costs. It is vital to have stringent measures in place that prevent this from happening.

 

For more information on how public sector organizations can eliminate unnecessary spending across the software and cloud estates, please download our free eGuide. Alternatively, you can always contact one of the team here.

 

ABOUT THE AUTHOR

Livingstone Group | Leadership team | Chris Gough

Chris Gough, Chief Strategy Officer

Chris has worked in the IT Industry for over 20 years, starting as a consultant he then took on more senior practice management roles, focusing on networking, security, data centre and unified communications and in recent years specialising in data centre optimisation and particularly in software licensing. Having worked with large enterprise organisations, Chris understands the challenges faced in data centre licensing and the lack of expertise in the marketplace.

Having founded the Derive Logic business until its acquisition by the Carlyle Group in April 2019, Chris is now on the senior executive board for the world’s largest independent IT Transformation Assurance and Software/Cloud Risk Management business, Livingstone Group.

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