How to Ace Vendor Audits

 
 
By Dennis McCafferty  |  Posted 10-19-2016 Email
 
 
 
 
 
 
 
 
 
 

A majority of companies have received software and hardware audit requests from vendors over the last 18 months—and many have undergone these audits several times during this time frame, according to a recent survey from BDNA. The resulting findings summary, titled the "BDNA State of the Enterprise Report: Breaking Away from the Vicious Vendor Audit Cycle," indicates that most companies run an IT asset management (ITAM) practice, but few have the right tools in place to prove that they're compliant during audits. If they fail, they end up paying hefty fines, as vendors now view license audits as a robust source of steady revenue. To avoid this, CIOs and their IT teams must take a proactive, holistic approach to software product management—as opposed to taking action only after an audit request is issued. "Companies have adopted the habit of reacting to audit notices by scrambling to compile the relevant data—an incredibly time-intensive process," according to the report. "And then, when they are ultimately found to be out of compliance (as most companies are, given the convoluted nature of license agreements), most organizations have no choice but to capitulate and pay up. The fact is that few enterprises purposely misuse assets, but are instead caught out of compliance due to the increasing complexity of license usage policies … By changing a few aspects of how IT technology data is managed, businesses can become proactive in managing their software and hardware assets, literally ending the vicious vendor audit cycle or avoiding it altogether." Representatives of more than 160 global companies took part in the research.

 
 
 
 
 
Dennis McCafferty is a freelance writer for Baseline Magazine.

 
 
 
 
 
 

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