Itasca, IL & New York, NY - Nov 10, 2014 - KPMG LLP, the U.S. audit, tax and advisory firm, and Flexera Software, a leading provider of Software License Optimization solutions, today announced an alliance to offer holistic Software Asset Management and License Optimization software and services to enterprise customers.
The alliance leverages KPMG and Flexera Software’s strengths in software license management technology, services and processes to help companies improve their operational capability, effectively manage their software license estate, help optimize spend and reduce license compliance risk.
“Currently, companies spend as much as 25 percent of their IT budgets on software and find themselves under increasing pressure to identify and eliminate waste and risk around this critical corporate asset,” said Paul Baguley, Principal, Contract Compliance at KPMG. “KPMG has a dedicated network of hundreds of software licensing and Software Asset Management professionals around the globe, and our alliance with Flexera Software allows us to help clients effectively manage their IT software budgets and more accurately plan for future needs.”
In an effort to discover the burden software licensing places on companies, Flexera Software and industry-analyst IDC recently concluded research on software audits and compliance risk and software applications that were purchased but not used, known as “shelfware.” The research revealed that 85 percent of organizations possessed software license agreements that were non-compliant, and nearly all enterprises (96 percent) conceded that they owned shelfware.
These aspects pose a significant risk to businesses as, according to the reports, nearly two-thirds of enterprises (63 percent) were audited by their software vendors in the last 18-24 months. As a result, 56 percent of companies researched were assessed “true-up bills” that cost, in some cases, $1M or more.
“Enterprise software counts among the most difficult of assets to manage for any organization. The sheer diversity of software titles, the complexity of licensing terms, the evolving environments in which the software will be run, and constantly changing workforces represent just a few of the challenges,” said Jim Ryan, Chief Operating Officer at Flexera Software. “Effective license management requires top-notch people, processes and technology. Flexera Software’s market-leading Software License Optimization solution and KPMG’s high-quality service offerings provide a one-stop-shop for organizations seeking to reduce waste and risk in their enterprise software investments to help ensure they’re only buying what they need and using what they have.”
The alliance combines KPMG’s contract compliance experience and methodologies with Flexera Software’s FlexNet Manager Suite for Enterprises to help enterprise software consumers proactively manage their software assets – and budgets – from procurement through to retirement. Through the alliance, clients can increase visibility into software application deployment, entitlement, and usage; strengthen contract negotiations with vendors; reduce risk of software compliance audits; and gain continuous control of software with repeatable, automated leading practice software asset management processes.
Flexera Software’s Software License Optimization solution will also seamlessly integrate into KPMG’s existing alliance-based offerings with ServiceNow to provide a comprehensive IT asset management solution.
*Not permissible for KPMG audit clients and their affiliates.
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FlexNet Manager Suite for Enterprises includes the following components:
Flexera is reimagining the way software is bought, sold, managed and secured. We view the software industry as a supply chain, and make the business of buying and selling software and technology asset data more profitable, secure, and effective. Our Monetization and Security solutions help software sellers transform their business models, grow recurring revenues and minimize open source risk. Our Vulnerability and Software Asset Management (SAM) solutions strip waste and unpredictability out of procuring software, helping companies buy only the software and cloud services they need, manage what they have, and reduce compliance and security risk. The Flexera RightScale multicloud management and cloud cost optimization solutions enable enterprises to drive top-line revenue while optimizing cloud usage to reduce risk and costs. Powering these solutions and the entire software supply chain, Flexera has built the world’s largest and most comprehensive repository of market intelligence on technology assets. In business for 30+ years, our 1300+ employees are passionate about helping our 80,000+ customers generate millions in ROI every year. Visit us at www.flexera.com.
About KPMG LLP
KPMG LLP, the audit, tax and advisory firm (www.kpmg.com/us), is the U.S. member firm of KPMG International Cooperative (“KPMG International”). KPMG International’s member firms have 155,000 professionals, including more than 8,600 partners, in 155 countries.
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