The Architecture, Engineering, and Construction (AEC) industry, traditionally perceived as slow to adopt new technologies, is at the cusp of a digital revolution. 2024 will see a substantial surge in software spending by AEC firms. However, to truly unlock the value of these investments, AEC must also turn to software license management to effectively manage and optimize these growing asset portfolios.
Software License Management: Strategic Need for the AEC Industry
Construction and engineering firms may be prudent in their investments, yet they are more than willing to allocate resources when the right conditions and value proposition align with their requirements. For instance, the construction sector in Japan expects a substantial rise in software investments in the coming years due to the surge of infrastructure projects in the country.
As AEC firms expand their engineering and specialized software portfolios, software license management becomes critical to avoid legal issues, minimize costs, and ensure that the right tools are available when needed.
AEC Firms to Pour Billions on Software
AEC firms are increasingly recognizing the value of specific software solutions to streamline their operations and deliver superior project outcomes. From enhanced collaboration to streamlined operations and timely project deliveries, the AEC industry is shoring up their investments for these top software priorities in 2024:
Construction Management Software: $5 billion in 2022 (8% CAGR)
3D Modeling: $7.8 billion in 2023 to $ 32.2 Billion by 2032 (16.9% CAGR)
Building Information Modeling (BIM): $7.73 billion in 2022 to $18.3 billion in 2031 (14.1% CAGR)
Digital Twins: $13.8 billion in 2022 to $71.9 Billion by 2028 (31.34% CAGR)
The figures above clearly signal the AEC’s impressive appetite for software investments in 2024 and the foreseeable future. Still, lack of visibility into software inventory and license utilization can impede the true value of these investments.
Implications of Limited Software Visibility
Compliance Management Difficulty
Firms lacking visibility into their software inventory may face challenges in managing compliance, risking the use of unlicensed or improperly licensed software. Non-compliance can result in legal penalties and fines, disrupting financial plans and tarnishing the firm’s reputation.
Inefficient Cost and Resource Management
Without precise software usage data, firms struggle to pinpoint overspending or resource underutilization, leading to budget inefficiencies. This lack of expenditure tracking hinders optimal software investment, often causing wastage on unused licenses.
Informed Software Selection Hindered
Accurate software usage data is crucial for selecting appropriate tools. Without this, firms may invest in software that misaligns with their actual needs, impacting productivity and ROI.
Weakened Vendor Negotiation Position
Firms without concrete usage data lack negotiation leverage with vendors, potentially leading to unfavorable terms and higher costs due to the inability to prove actual usage patterns.
Forecasting and Planning Challenges
Effective forecasting and planning for future software needs are vital for aligning technology investments with business goals. A lack of current software usage insight hampers this process, possibly leading to resource shortfalls or excess purchasing, both carrying financial consequences.
How SLM Supports AEC License Expansion
With investments in CMS, BIM, 3D modeling, and digital twins projected to increase, AEC industry leaders also realize the crucial role of software license management solutions in optimizing these expenditures.
Organizations require comprehensive visibility into their software license portfolio. Such clarity allows them to know their true license usage and capture relevant insights that enable them to optimize and extract max value from their software investments.
License Usage Analysis
Software license management tools track how and when software licenses are used within an organization. This granular license usage analysis provides AEC organizations with a clear picture of which software tools are in high demand and which may be underutilized.
Identifying License Needs
With usage data at their fingertips, AEC firms can identify areas where additional licenses are necessary. This prevents bottlenecks and delays due to license shortages and ensures that all team members have access to the tools they need for their work.
By analyzing usage patterns, AEC organizations can identify software licenses that may not be essential for every team or project. This allows for strategic cost optimization by eliminating unnecessary licenses and renegotiating contracts based on actual usage, resulting in significant cost savings.
Data-driven insights help AEC firms allocate software licenses more efficiently. This ensures that resources are directed to the teams and individuals who need them most, improving resource allocation and productivity.
License utilization data and insights assist in long-term strategic planning. AEC organizations can make informed decisions about which software solutions to invest in, where to scale up or down, and how to align software resources with their business objectives.
Compliance and Risk Mitigation
Data-driven decision-making also supports compliance with licensing agreements and reduces legal and financial risks. AEC companies can ensure that they are using licenses in accordance with the terms and conditions, reducing the potential for costly penalties.
Leverage The Open iT Advantage in 2024
Investing in software license management not only guides AEC companies in steering their software spending in the right direction but also empowers them to optimize their existing licenses, maintain compliance, and efficiently control costs.
Open iT offers comprehensive software license management capabilities and services tailored to the unique needs of architecture, engineering, and construction firms. Open iT is also a trusted partner, supporting industry-leading engineering and simulation software products deployed by AEC companies, such as Autodesk BIM 360, MATLAB, and Dassault 3DS.
Discover the Open iT advantage. Connect with an Open iT representative today and unlock the full potential of your software investments.