The US government allocates billions annually on software licenses, from office suites to specialized applications. However, ineffective license management across federal agencies has led to unreliable software data quality, disrupting acquisition, renewal, utilization, and resource allocation processes. Open iT offers comprehensive solutions to resolve these inefficiencies.
Poor Software Data Quality Across US Government
During an investigation into software usage across multiple federal departments, the Government Accountability Office (GAO) aimed to determine which software products were the most widely deployed and incurred the highest costs. However, the effort was hindered by poor software data quality.
“We weren’t able to make that determination,” explained Carol Harris, Director of Information Technology and Acquisition Management at GAO. “Because agency software data are inconsistent and incomplete across the government.”
Despite spending $100 billion yearly on software licenses, the US government faces significant operational inefficiencies and financial losses, driven by fragmented and unreliable license usage data quality.
Gartner reports that organizations lose an average of $12.9 million annually due to poor data quality.
Better License Management = Better Data Quality
The GAO emphasizes the need for centralized and efficient software license management to address data quality issues. Open iT, a GSA-certified provider, delivers a comprehensive set of tools designed to improve the accuracy and reliability of license data across an organization.
Open iT aggregates data from various sources, using targeted data collectors to capture detailed usage metrics from servers, workstations, and cloud environments. Seamless integration with systems like Active Directory and SAP enables the connection between business and IT data, creating comprehensive reports on license usage by location, cost center, or project. The platform’s REST API allows for tailored reporting, while license tracking across both on-premises and cloud environments ensures a complete and precise view of software assets.
Centralized Software License Management
By centralizing software license tracking, Open iT consolidates fragmented data into a single, real-time system, offering complete visibility into usage and costs at both the organizational and product levels.
Comprehensive Inventory Tracking
Open iT can track license activity, including installations, activations, and deactivations, ensuring that licenses are accurately deployed and available. This helps agencies identify unused or underutilized licenses, improving resource allocation.
Advanced License Usage Analysis
With its powerful analytics tools, Open iT provides deep insights into software usage patterns, allowing agencies to assess compliance with license agreements. The platform helps identify and remove redundant applications, reduce idle licenses, and pinpoint cost-saving opportunities, all of which contribute to more effective budget management.
Cost Optimization and Risk Mitigation
By tracking and analyzing resource consumption, Open iT proactively identifies overuse, underutilization, and opportunities for software license optimization, helping mitigate risks such as non-compliance fees and unnecessary renewals.
IT Chargeback
Open iT supports IT chargeback functionality, assigning software costs to departments based on actual usage. This increases accountability and drives more efficient license utilization.
Compliance Assurance
Open iT continuously monitors usage against purchased entitlements and informs compliance reports to help agencies avoid costly vendor penalties and maintain adherence to legal requirements.
Integration with Business Intelligence Tools
Open iT integrates seamlessly with business intelligence platforms like Power BI and Tableau, enabling federal agencies to combine license management data with broader organizational insights. This helps in creating actionable reports that support decision-making for software license optimization, procurement, and cost-cutting measures.
Financial Risks of Poor Software License Data Quality
One agency examined by the GAO had over 140 distinct software products but lacked visibility into which were most widely used or incurred the highest costs. This issue is not just an isolated case, but prevalent across other federal offices as well.
Harris emphasized the significant financial risks of inaccurate software license data, especially during vendor audits. Discrepancies between purchased and deployed licenses often result in substantial ” true-up fees,” penalties for exceeding entitlements. These fees can be severe, particularly when agencies unknowingly use more licenses than procured, leading to unexpected costs.
Eliminate the Pitfalls of Poor Software Data Quality
According to Gartner, organizations lose an average of $12.9 million annually due to poor data quality. For federal agencies, where software licenses represent a significant share of IT costs, fragmented and unreliable license data can lead to inflated costs and reduced operational efficiency.
By implementing GSA-approved advanced license management solutions, agencies can ensure accurate usage tracking, enforce compliance, and optimize their software assets.
Contact Open iT to explore how your organization further improve software data quality and mitigate financial risks and drive cost efficiency.
