How does modern portfolio management transform ITAM and SAM practices?
While different, managing a modern portfolio that encompasses classic software, SaaS, and enterprise solutions complements traditional Software Asset Management (SAM) and IT Asset Management (ITAM) practices.
The shift to the cloud and the emergence of FinOps have introduced a new paradigm. FinOps advocates for "Inform, Operate, Optimise" management phases and emphasizes accountability and broader stakeholder engagement. Unlike traditional on-premises software, SaaS often doesn't require IT technical support, can be purchased via various channels, and is financed differently, through operational expenses (OPEX).
To effectively manage this hybrid landscape organisations should implement a 360° Smart Portfolio Management initiative. This initiative covers legacy management, new technology adoption, and application modernisation strategies, applying the "Transformation 7Rs" framework (Rehost, Relocate, Replatform, Refactor, Repurchase, Retire, and Retain) to the overall application portfolio. Therefore, to master SaaS management, one has to apply the FinOps methodology over the known software landscape.