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Software License Optimization: How VA Can Multiply Their $65 Million Savings

By Laurie Shrout
June 27, 2025

Software License Optimization: How VA Can Multiply Their $65 Million Savings

The Department of Veterans Affairs has demonstrated the power of strategic software asset management by achieving $65 million in software licensing savings through improved IT asset management practices. This achievement represents just the foundation of what comprehensive VA software licensing optimization can accomplish across the department's technology portfolio serving over 9.1 million veterans.

Department of Veterans Affairs infographic showing $65 million in software license optimization savings with official VA logo. Features three key strategies: license optimization across 2,000+ facilities, cost reduction through vendor contract optimization, and process improvement via centralized procurement. Bar chart displays current $65M savings versus potential $200M+ multiplied results. Includes call-to-action highlighting $6.3B FY25 IT budget opportunity for strategic software asset management by SIE Group.

Proven Foundation: Understanding VA's $65M Success

The VA's software licensing achievements provide a concrete blueprint for federal software asset management expansion. The department's success came through specific software-focused strategies:

Software-Specific Discovery Techniques

  • License entitlement analysis comparing actual deployments to purchased rights
  • Application usage monitoring identifying underutilized software across facilities
  • Redundant installation detection eliminating duplicate software purchases
  • Compliance gap identification preventing costly audit penalties

Software-Centric Process Improvements

  • Centralized software procurement coordinating purchases across 2,000+ facilities
  • License right-sizing matching specific license types to actual usage patterns
  • Software vendor consolidation reducing the complexity of managing hundreds of vendors
  • Contract optimization leveraging software usage data for better vendor negotiations

The Software Multiplication Strategy

Unlike general IT asset management, VA software licensing optimization offers unique multiplication opportunities specific to software portfolios:

License Portfolio Engineering

Strategic software management enables:

  • License harvesting from departing employees and unused installations
  • Feature-based optimization paying only for software capabilities actually used
  • Geographic licensing coordination optimizing site licenses across distributed facilities
  • Version standardization reducing support complexity and licensing costs

Software Vendor Management Excellence

  • Enterprise License Agreement (ELA) optimization restructuring agreements for actual usage
  • Software audit defense proactive compliance to avoid vendor penalty fees
  • Vendor performance metrics tying software support quality to contract renewals
  • Alternative software evaluation leveraging competition for better pricing

Strategic Market Opportunities for Immediate Impact

Recent software market developments present immediate VA license cost reduction opportunities:

Microsoft Licensing Evolution

Microsoft's introduction of hot patching fees at $1.50 per CPU core monthly creates strategic decision points:

  • Windows Server optimization evaluating cost vs. uptime requirements
  • Azure migration incentives leveraging cloud benefits to offset licensing costs
  • Alternative workload assessment identifying Linux migration candidates
  • Hybrid licensing strategies optimizing across on-premises and cloud environments

Competitive Leverage Through Google's Federal Offering

Google's 71% federal discount demonstrates market competition benefits:

  • Productivity suite alternatives potentially saving millions annually on collaboration tools
  • Vendor negotiation leverage using competitive offers to improve existing contracts
  • Risk diversification reducing dependency on single software providers
  • Innovation acceleration accessing cutting-edge capabilities through competitive platforms

Software-Specific Implementation Approach

Multiplying software licensing savings requires specialized techniques beyond general ITAM:

VA software license optimization process diagram showing 3-phase implementation timeline: Phase 1 Analysis (months 1-3) including software spend analysis and compliance audit, Phase 2 Optimization (months 4-12) featuring license reclamation and vendor consolidation, and Phase 3 Advanced Analytics (months 13-24) with predictive modeling and automated optimization. Created by SIE Group for federal software asset management.

Phase 1: Software Portfolio Analysis (Months 1-3)

  • Software spend analysis identifying highest-cost licensing categories
  • Application rationalization eliminating redundant or obsolete software
  • License compliance audit ensuring current deployments match entitlements
  • Vendor relationship assessment evaluating contract performance and renewal timing

Phase 2: Strategic Software Optimization (Months 4-12)

  • License reclamation projects harvesting unused software licenses
  • Feature utilization analysis downgrading licenses to match actual usage
  • Vendor consolidation initiatives reducing software supplier complexity
  • Contract renegotiation leveraging usage data and competitive alternatives

Phase 3: Advanced Software Analytics (Months 13-24)

  • Predictive software modeling forecasting future licensing needs based on usage trends
  • Automated optimization continuously adjusting licenses based on real usage
  • Software ROI measurement demonstrating value from specific applications
  • Portfolio modernization replacing legacy software with cost-effective alternatives

Federal Healthcare Software Specialization

Healthcare software optimization requires understanding unique federal healthcare software challenges:

Clinical Software Licensing

  • Electronic Health Record optimization maximizing value from major EHR investments
  • Medical device software management ensuring FDA compliance while controlling costs
  • Clinical application integration optimizing interoperability licensing costs
  • Telehealth platform optimization right-sizing remote care software investments

Healthcare Compliance Software Management

  • HIPAA-compliant software tracking ensuring privacy requirements while optimizing costs
  • FDA software validation managing compliance for medical device software
  • Interoperability licensing optimizing costs for healthcare data exchange
  • Audit trail software ensuring compliance documentation while controlling expenses

The SIE Group's Software-Specialized Expertise

Our federal software asset management specialization focuses specifically on software licensing optimization:

Software-Centric Assessment

  • Software spend analysis identifying the highest-impact optimization opportunities
  • Vendor-agnostic evaluation ensuring optimal software choices regardless of current relationships
  • Software usage analytics providing detailed insights into application utilization patterns
  • License optimization modeling projecting potential savings from specific software changes

Specialized Software Implementation

  • Software vendor negotiation leveraging market intelligence for optimal contract terms
  • License management automation deploying tools specifically designed for software optimization
  • Software compliance management ensuring adherence to complex licensing terms
  • Change management for software transitions with minimal user disruption

Maximizing the $65 Million Foundation

The VA's $65 million software licensing achievement demonstrates proven capability for software optimization success. With $6.3 billion allocated for IT systems in FY25, strategic software asset management can unlock hundreds of millions in additional funding for veteran-serving initiatives.

The multiplication opportunity requires treating software as a strategic portfolio requiring active management, not just individual application purchases. Success comes from understanding that software licensing optimization is a specialized discipline requiring dedicated expertise and continuous attention.

Ready to multiply your software licensing optimization results? Schedule a no-cost assessment with The SIE Group to learn how our proven federal software asset management methodologies can help achieve significant expansion of current savings through strategic software portfolio management.