What’s Next for Service Level Management?
Four of the highest-profile focus areas for IT are artificial intelligence (AI), machine learning (ML), the Internet of Things (IoT), and digital transformation. All four are likely to affect and be affected by the continuing evolution of software license management.
AI, ML, and SLM
AI and ML tools are already being used to help improve the management of entire IT estates. Both technologies will likely be integrated into future solutions for IT asset management generally, and for SLM specifically. AI and ML will help to improve discovery, relationship management, and compliance management. Such improvements will both spur and require the transformation of how IT assets, including software, are viewed and managed. The same technologies are likely to enhance future software auditing tools as well.
The ultimate goal of the IoT is to bring connectivity and intelligence to devices beyond computers, tablets, and smartphones. So-called “smart” devices now range from door locks and power outlets to sensors that help govern the distribution of utilities such as water and power.
SLM and the IoT
The IoT is causing explosive growth in the number of connected devices, and the security and management needs of those devices. The number of connected devices today is already estimated to exceed the number of humans on Earth. Predictions for the number of connected IoT devices in 2020 range from 20 billion to upwards of 50 billion.
Your business may already be experiencing a growing population of IoT devices. Perhaps there are already connected cameras and video monitors in conference rooms and public areas at your facilities. Or smart appliances in your kitchens and break rooms, manipulated by smartphone apps. Or IoT-enabled sensors in your warehouses and throughout your supply chain.
Unfortunately, many if not most of these devices rely on software that may or may not be manageable with today’s SLM processes and tools. The software that supports a smart, connected video monitor may be provided under a traditional license, but sensor software is unlikely to be.
IoT device makers have struggled with software licensing issues for years. As far back as 2015, respected technology industry analyst firm Gartner warned IoT device makers that they needed new license entitlement and management (LEM) solutions. “We expect that by 2020, a failure to put in place a LEM system will result in a 20 percent drop in potential revenue generated from software for device manufacturers connecting to the IoT.” Some IoT device makers are building or considering online “app stores,” but there is not yet any industry consensus on how best to issue and manage IoT software licenses.
IoT and IIoT growth are spurring the creation of new IoT-enabled software and security platforms and architectures. The IoT is also beginning to change how software licenses are structured, as client-server and cloud computing have done. Software License Management is likely to continue to evolve as long as new technologies are integrated into IT estates. The better your SLM processes and solutions are today, the better prepared you and your business will be for the future, whatever it brings.
SLM and Digital Transformation
Every business is pursuing or considering some form of digital transformation. This is a business imperative because digital technologies are transforming how almost everything is built, bought, and sold, and how customers and partners expect to do business.
In July 2019, Cloud Computing News reported on a recent Gartner survey of some 473 business leaders of companies with annual revenues of $50 million or more. “Eighty-two percent of Gartner's survey respondents agreed that they had a management initiative or transformation program underway to make their companies more digital.” That represents a 62-percent increase over the previous year.
Digital transformation starts with and focuses intently on IT. And software is how the effects and benefits of digital transformation are delivered to users, customers, partners, and the business. As digital transformation efforts proceed, software choices are likely to evolve frequently and rapidly. Software licenses and contracts must be managed well to keep pace and maximize the value of those efforts.