Federal agencies operate in some of the most software-intensive environments globally, leveraging a diverse mix of commercial, open-source, on-premises, and cloud-based tools to fulfill their missions. Effectively managing this software ecosystem is no longer optional, it is vital to maintaining operational integrity, ensuring cybersecurity, and exercising fiscal responsibility.
Despite the availability of proven federal software asset management (SAM) frameworks, such as ISO/IEC 19770, NIST IT asset management guidelines, and mandates such as the MEGABYTE Act, many agencies have yet to implement them effectively. This lack of adoption impairs efforts to reduce software waste, ensure compliance, and strengthen cybersecurity. Common barriers include constrained resources, siloed systems, and the absence of centralized SAM governance
Lost in Licensing: A Federal Issue
A recent report from the Office of Inspector General (OIG) urged the Environmental Protection Agency (EPA) to modernize its software license inventory. The OIG highlighted significant gaps in accountability and visibility, noting that the agency had not yet designated a system of record for software license data, an essential foundation for any SAM strategy.
“Without a complete and accurate inventory of software purchase and licensing data, the Agency lacks accountability for, and visibility of, software installed on its network.“
The EPA is not alone in this challenge. Numerous federal agencies still operate without a centralized, authoritative license inventory. Without the infrastructure to track entitlements and usage, these agencies remain vulnerable to noncompliance, inefficiencies, and unnecessary costs.
Proven Federal SAM Frameworks, Poor Implementation
The ISO/IEC 19770-1 standard outlines comprehensive SAM practices, including license tracking, entitlement management, process maturity, and continual improvement. NIST publications such as SP 1800-5 and SP 800-53 further underscore the role of SAM in strengthening cybersecurity and IT lifecycle governance.
These federal SAM frameworks are mature, field-tested, and widely adopted in the private sector. Yet adoption within the federal space remains limited. The gap lies not in the frameworks themselves but in the agencies’ ability to implement them effectively.
Key Reasons for Underutilization
Lack of Dedicated Resources
According to a 2024 GAO report, several agencies admitted they either lacked the internal expertise to analyze software licenses or did not have a formal SAM function in place. Responsibilities are often dispersed across procurement, cybersecurity, legal, and IT teams, leading to fragmented ownership and inconsistent execution.
Overspending Due to Poor Visibility
A staggering 45% of organizations, government and private alike, overspend on software due to inadequate visibility into license usage and entitlements. Without accurate usage data, agencies can’t confidently assess needs or rationalize software portfolios.
Budgetary Constraints and Competing Priorities
SAM initiatives often lose out to more immediate funding priorities like cybersecurity and modernization. Although SAM offers long-term savings, agencies struggle to justify the upfront investment in tools and personnel needed to implement frameworks like ISO 19770.
Siloed Systems and Inconsistent Data
Software inventories are commonly spread across spreadsheets, outdated CMDBs, and disconnected vendor tools. ISO 19770-2 relies on consistent software identification tagging—something nearly impossible without centralized, normalized data.
Absence of Enterprise-Level SAM Governance
Even agencies with tracking capabilities frequently lack governance structures to enforce SAM policy across business units. Without centralized control, procurement becomes inconsistent, license usage is redundant, and cross-agency optimization is unachievable.
The Consequences of Fragmented SAM
Agencies that fail to operationalize federal SAM frameworks face three primary risks:
- Financial Waste: Redundant purchases and underutilized licenses inflate operations and maintenance (O&M) costs, diverting funds from mission-critical priorities.
- Audit Vulnerability: Incomplete entitlement records heighten exposure to vendor audits and regulatory reviews.
- Security Gaps: Inaccurate software inventories and unmanaged applications broaden the attack surface and hinder zero-trust initiatives.
Enhance Compliance with Open iT
Software license management solutions purpose-built for complex IT environments—such as Open iT—play a crucial role in helping federal agencies operationalize SAM frameworks.
Data Normalization and Aggregation
Open iT collects and normalizes usage data from disparate sources—license managers, log files, cloud systems, and user activity—into a unified inventory. This supports compliance with ISO 19770-1 and creates the visibility required for informed governance.
License Reconciliation and Optimization
By mapping actual usage against entitlements, Open iT supports license reconciliation and optimization. This enables precise software right-sizing and strengthens negotiations with data-driven insights.
Governance and Reporting
With customizable dashboards and analytics, Open iT empowers governance teams to enforce policy, track usage trends, and support compliance reporting aligned with federal mandates.
Expert Managed SAM Services
Open iT’s Managed SAM Services help federal agencies operationalize standards like ISO/IEC 19770 by providing expert-driven software license tracking, compliance analysis, and centralized data management. This ensures continuous audit readiness, reduces noncompliance risks, and frees up internal resources for higher-value tasks.
Moving Forward: Closing the Implementation Gap
Despite available guidance and mandates, most federal agencies remain far from realizing the benefits of structured software asset management. The tools and frameworks exist—but leadership commitment, governance, and implementation support are what will close the gap.
Recommendations:
- Appoint a SAM Program Owner with enterprise-wide authority.
- Leverage managed SAM services to bootstrap framework implementation and training.
- Invest in tools like Open iT that support multi-source data integration, license utilization monitoring, and entitlement reconciliation.
- Integrate SAM with procurement, cybersecurity, and IT operations to ensure a unified governance approach.
Federal SAM Frameworks Don’t Implement Themselves
The standards are clear. The technology exists. What’s missing is the operational bridge between guidance and execution. Effective SAM is not just about compliance—it’s about empowering agencies to govern IT assets with intelligence, agility, and fiscal discipline.
Open iT brings the visibility, tools, and expertise needed to operationalize SAM at scale—transforming fragmented license data into actionable intelligence.
Bring your software into the light. Contact Open iT to transform license chaos into clarity.
