Proper software management is important for several reasons.

First, poor software management can mask software piracy, an illegal activity that can impose costly consequences to the business, both from a legal and a security standpoint.

Many governments across Asia are now taking a tougher stance on copyright infringement. In many countries, willful copyright infringement can result in criminal liabilities. Many organizations don’t realize that under-licensing--where, for example, a company with only one license installs the software on five PCs-- is also a form of software piracy. This, in addition to the use of illegal software, can land businesses into hot soup with the authorities.

Illegal software also exposes an organization’s computers to malicious code and virus attacks that can destroy valuable data and bring down an entire network.

Second, software is a valuable asset that, when properly managed, can offer many business benefits, ranging from cost savings to gains in employee productivity and efficiency.

What about SAM?
In a nutshell, software asset management (SAM) is a business process that enables an organization to identify and eliminate unauthorized software, and addresses under-licensing issues. While software inventory and tracking are integral parts of SAM, so are the policies, procedures, technologies, procurement, delivery, deployment, and support of a company's software assets.

Step 1: Know what you need
As a start, each company should know exactly what software it needs. This is valuable to ensure effective and efficient purchasing and use of software.

To determine what is needed, answer these questions:

• Are you using the right software to optimize efficiency and effectiveness?
  
• Are staff satisfied with their current software applications?
  
• Are there other software programs that would enable your staff to operate more effectively and efficiently?
  
• Are there software programs you now have but don’t need anymore?
  

Know what you have