In a climate of economic and political uncertainty, tech budgets are under pressure. According to Forrester’s Industry- And Customer-Supporting Software Survey, 2025, 23% of organizations cite budget as their number one software challenge. Currency depreciation, ranging from 6 to 12% in EMEA/APAC, adds further strains on US-dollar-denominated renewals. Making things worse, 27% of organizations report that over 50% of non-IT tech spending occurs without IT oversight (source: Forrester’s Security Survey, 2024). This fragmentation undermines cost management and increases risk.

In this environment, software asset management (SAM) tools emerge as a critical lever to gain visibility, regain control, and optimize license utilization — tracking usage in real time and driving cost efficiency across the technology landscape.

Reclaiming Control In A Complex Tech Stack

SAM tools bring discipline to the entire software lifecycle by automating discovery, deployment, and retirement. They centralize software-as-a-service (SaaS) management, giving IT clear visibility into subscriptions, usage patterns, and costs. This enables smarter license utilization and prevents waste. In addition to cost tracking, high-performance IT organizations utilize SAM budget forecasting and identification of underutilized assets. Leading platforms reduce the risk of surprise true-ups by automating license reconciliation and real-time usage monitoring to maintain continuous compliance. SAM also enforces governance by aligning software usage with policy, reducing audit risks and unexpected spend. In The Forrester Wave™: Software Asset Management Solutions, Q1 2025, we highlight the following features as crucial when selecting a SAM tool. Ensure that the tool offers:

  • AI/ML in contract and license management. Vendors should integrate AI/ML to automate contract term extraction, ensure compliance, and provide predictive insights into software usage trends.
  • SaaS management with extended FinOps capabilities. Providers should offer comprehensive SaaS management with real-time visibility into subscriptions, license utilization, and spending optimization.
  • Support for the entire software lifecycle management process. Vendors should enable end-to-end lifecycle management, streamlining software acquisition, requests, approvals, and compliance.

Choosing The Right Vendor Is Half The Battle

No two IT environments are the same. Each operates with its own blend of tech stacks, philosophies around build vs. buy, asset management practices, and definitions of success. Accordingly, selecting the right SAM vendor that meets the IT team’s needs is crucial. IT teams should start by identifying their most critical criteria, such as avoiding true-ups, managing security vulnerabilities, or optimizing costs. They should then examine these criteria in detail to identify the essential functionalities of a SAM tool that can best meet their needs. Refer to our latest Forrester Wave evaluation of the SAM solutions space to gain insight into each type of functionality, helping you choose the right vendor that aligns with broader organizational goals and objectives.