Certified Supply Chain Professional (CSCP) Practice Exam

What defines software asset management?

1. All software must be terminated after a project ends

2. All third-party software and technology is utilized as intended

3. Regularly purchasing new software

4. Only using free software programs

The correct answer is: All third-party software and technology is utilized as intended

Software asset management (SAM) is primarily defined as the process of managing and optimizing an organization’s software applications and licenses. This includes ensuring that all third-party software and technology is utilized as intended, maximizing usage and compliance with licensing agreements while minimizing costs. Option B reflects this definition accurately, as it emphasizes the correct use of software, which is a fundamental aspect of SAM. By ensuring that software is utilized as designed, organizations can avoid legal issues related to license compliance, reduce unnecessary expenses from underutilized or unused software, and enhance overall operational efficiency. SAM helps organizations maintain visibility and control over their software assets throughout their lifecycle, promoting effective management practices and strategic planning. The other options do not accurately represent the core concept of software asset management. For example, terminating all software after a project's conclusion does not encompass the broader purpose of managing software throughout its lifecycle. Regularly purchasing new software or solely using free software programs also diverges from the key idea of managing existing assets effectively to optimize value and compliance. Thus, the focus on maximizing intended use aligns perfectly with the principles of software asset management.