Having the right software asset management (SAM) strategy in place for your business can save you time, money, and lots of headaches—especially if you run into an unexpected software audit. But many companies have an outdated SAM strategy—or no SAM strategy at all—which is a risk that can be easily avoided if you take the right steps.

To help companies make smart decisions about reevaluating their SAM strategy, we’ve put together a quick list of five key signs that it’s time to take another look at how you’re managing your software.

#1: Your internal audit process is out of date. If you haven’t looked at your internal audit process for at least a couple of years, it’s probably obsolete, which can lead to a host of issues. It makes evaluating your software footprint difficult, and that might mean you’re overpaying for software you’re not using. Or it could mean you’re underpaying, which could lead to a costly audit. But if your internal audit process is up to speed, you can avoid these issues. (If you’re using IBM software, don’t forget they’ve recently upgraded ILMT)

#2: You’re going through a merger, acquisition, or divestiture. If your business is changing through a merger, acquisition, or divestiture, you need everyone on the same page—so it’s a good time to review your objectives and SAM strategy. These scenarios can take years to complete, so if you get audited during that time you need to make sure your software usage is well documented to prevent any snags in the process.

#3: You’ve recently expanded internationally. International software licensing is a whole new ballgame. If you acquire a foreign company or foreign assets and need to purchase software that will be used outside of the U.S., you’ll need to make sure you’re following the rules and regulations set by the foreign government. For example, in many European countries, trade unions require strict review of each individual software license. You need to be prepared for both the added time and expense of these processes.

#4: You change your IT support outsourcing or go cloud-based. When transitioning from one IT company to another, you need to make sure your new IT partner is providing accurate, detailed reporting. And if you transition to a cloud-based infrastructure, you’re going to need to take another look at your software licenses to make sure they align with the requirements of using cloud.

#5: Your IT architecture has changed. If you’re going through a major hardware upgrade, you need to take another look at your SAM strategy because new hardware can alter how you utilize software. Faster, more powerful hardware can change your licensing footprint—and that might mean spending more for the cost of additional processing. If these costs are unexpected, they can really hurt your bottom line.

Taking a closer look at your SAM strategy is always a good idea. Even if you think your strategy is optimal, it’s worth the time to make sure. Our team can help—contact us today to find out how.