As the digitalization in the oil and gas sector accelerates, investments in software licenses intensify. Gartner predicts a jump in global enterprise software spending, from $783 million in 2022 to $856 million in 2023. Recognizing this trend, CIOs in the oil and gas industry now leverage business intelligence and data analytics to strengthen digital strategies and gain an edge in a competitive market landscape.
Central to this digital momentum is Software License Management (SLM). The synergistic relationship between SLM and BI can significantly bolster the digital transformation in oil and gas. In an era of digital transformation, the confluence of SLM and BI becomes a powerful catalyst, propelling the oil and gas industry forward.
Potential Software Spending Trap in Oil and Gas
A recent Gartner poll indicates that 53% of CIOs in the oil and gas industry prioritize enhancing operational excellence as the primary goal of their digital transformation. This is followed by improving employee productivity (25%) and increasing cost-efficiency (22%). To realize these aims, a significant proportion of CIOs have augmented their 2023 budget allocations for cloud platforms (51%) and application modernization (49%).
This trend aligns with another Gartner study, forecasting a 9.3% increase in enterprise software expenditure across various sectors in 2023. This statistic underscores the increasing importance of software and cloud-based applications as integral tools not just in modern business operations and strategies, but in the oil and gas sector’s digitalization efforts as well.
However, with increased investment comes the imperative of ensuring that this money is well spent. For oil and gas entities, simply purchasing or renewing a software license isn’t enough. It’s crucial to have measures and policies in place that ensure the software’s deployment and usage align with their strategic objectives, ensuring maximum returns on their investments.
If businesses don’t use their technology investments effectively, they may not achieve desired improvements and could also experience setbacks. Their path to digitalization, instead of being a straight trajectory upwards, could see interruptions or even regressions. This situation could harm their progress, cancel out the advantages of their digital changes, and make their investments pointless.
O&G CIOs Turn to Business Intelligence and Analytics
In the past, decisions on investing in software licenses were made using traditional practices, common beliefs, and suggestions from users. Typically, people recorded these decisions in spreadsheets. These methods are prone to errors, lack transparency, can be biased, and are too complex. Moreover, they don’t offer a consistent, traceable decision-making process.
Fortunately, there’s a shifting mindset among CIOs in the oil and gas sector. To fully transform digitally, they must utilize business intelligence and data analytics. This will enable them to improve reporting, forecasting, budgeting, and planning of asset investments.
The inclination of a notable 60% of CIOs to boost investments in business intelligence and data analytics in 2023 further supports this narrative. Key decision-makers are prioritizing data, showing they understand its strategic importance. In a world increasingly driven by data, this trend underscores the industry’s move from traditional practices towards more contemporary, data-driven methodologies.
Business intelligence tools and analytics software are specifically designed to transform raw data into actionable intelligence. Oil and gas companies can use these tools to understand complex data, make smart choices, and plan better.
Software License Management: Providing Critical License Visibility
In the oil and gas industry, where specialized software is extensively utilized, leveraging business intelligence to optimize software assets is paramount. By harmonizing Software License Management (SLM) with BI strategies, organizations gain deep insights into license usage. This integration empowers them to optimize digital resources effectively, ensuring they align seamlessly with their digitalization objectives and overarching business goals.
SLM transcends mere cost-saving, enabling full harnessing of software licenses to enhance operational efficiency and spur innovation. It delves deeper than simple tracking, evaluating real-time usage patterns to spotlight inefficiencies and demands. By integrating SLM and business intelligence, CIOs in the oil and gas sector are positioning their organizations to be more agile, resilient, and prepared to navigate the uncertainties and challenges of the future.
The Open iT Advantage
Open iT offers advanced software license management for oil and gas companies. This helps to enhance their business intelligence efforts and drive their digital transformation.
In the complex landscape of oil and gas, specialized software is vital for exploration, data interpretation, and operational efficiency. Open iT transcends basic tracking, honing in on licenses pivotal to enhancing business processes and driving results.
Open iT’s influence on digitalization stands out for numerous reasons:
- Cost Efficiency: Dormant or under-utilized software licenses represent untapped potential and, more significantly, wasted financial resources. By identifying barely used licenses, Open iT helps oil and gas companies optimize IT costs by reallocating or eliminating them.
- Optimal Resource Utilization: Open iT integrates with top business intelligence tools and captures high-quality, actionable insights into license usage patterns, facilitating smarter procurement decisions. By ensuring immediate license access for engineers, Open iT improves resource utilization, enhances efficiencies, and prevents downtime caused by license denials.
- Strategic Alignment: When CIOs know which licenses are being used, they can better match software strategies with business goals. For instance, if a license that’s critical for data analytics is underutilized, it may indicate a gap in staff training or a lack of integration with other systems. Addressing such gaps can be pivotal for a company’s digital strategy.
- Risk Management: Misusing licenses or using unauthorized software can violate license agreements and industry regulations, leading to compliance challenges, substantial fines, and potential legal ramifications for organizations.
At the same time, under-leveraged software can be a missed opportunity for innovation and operational efficiency. Open iT aids businesses in navigating these challenges, safeguarding them from the pitfalls of unauthorized license usage while ensuring both regulatory compliance and optimal use of their software assets.
- Future Planning: Open iT offers advanced features and extensions, such as the LicensePredictor, which enables users to scrutinize both current and historical usage data and forecast future license consumption trends. Engineers have the flexibility to simulate various scenarios, equipping them to formulate adaptive plans and policies tailored to specific situations. When companies understand their current software usage patterns, they can make more accurate predictions about future needs, leading to smarter investments in technology.
Devon Energy’s Path to Enhanced Efficiency
Independent oil and natural gas exploration firm Devon Energy maintained an extensive subsurface license portfolio serving 150-200 users. This significant E&P software inventory demanded substantial financial outlays, reaching into the millions. Devon wanted to improve efficiency, reduce IT costs, and encourage innovation by optimizing license usage.
Enter Open iT. The platform seamlessly integrated disparate license managers, presenting a holistic view of real-time and historic license consumption via a centralized dashboard. Collaborating with Devon Energy’s Subsurface IT team, Open iT’s in-depth license tracking and enriched reporting provided unparalleled insights. These revelations not only fostered a deeper understanding of software requirements but also bridged the communication gap between IT and other departments, aligning their objectives.
The net result? A notable 20% reduction in IT expenditures, accelerated decision-making processes, and a surge in organizational productivity and agility.
We had multiple tools in our portfolio, but we didn’t have an effective way of tracking.
Matt Hollingsworth
Open iT is very involved, making sure that every part of the solution worked.”
Senior Systems Analyst, Devon Energy
Fuel Digital Transformation in Oil and Gas with Open iT
Digital transformation in oil and gas is a continuous process that requires expert navigation of the intricate maze of software licensing. Open iT equips the oil and gas sector with the tools to help their digital transformation and ease their adoption of cloud-based tools.
The world of software licensing is rife with complexities, encompassing a multitude of models such as named-user licenses, network licenses, token-based licenses, cloud-based licenses, dongle licenses, and many more. Each of these licensing models possesses unique characteristics and usage parameters.
Traditionally, gaining insights into the utilization of these licenses would require one to open and access individually into each license manager’s or vendor’s interface. This fragmented approach not only consumes time but can also lead to a disjointed understanding, given the absence of a unified view.
Open iT addresses this challenge. It serves as a unifying platform, offering a consolidated panorama of an organization’s entire licensing landscape. But it doesn’t stop at mere aggregation. Open iT translates raw data into visual, intuitive reports, rendering the intricate tales of licensing into coherent narratives.
These streamlined reports ensure stakeholders, from tech teams to executive leadership, grasp the nuances of software licenses. Open iT simplifies software licensing, making it clear and easy to understand. It helps CIOs transition smoothly to digital while staying compliant.
Open iT uses custom reports and scenario simulations. These tools provide important insights. They help CIOs improve their digital plans. They also help CIOs achieve their transformation goals.
Contact Open iT today and discover how our software license management solution can optimize your license portfolio and positively impact your digitalization efforts.
