Why SAM is Critical During a Housing Association Merger

When Housing Associations go through a merger, various transfers and transitions take place such as staff, assets and financial documentation. However, one thing that can often be missed, and can result in a substantial risk, is software licensing.

A common way to understand the number of hardware assets in an organisation is through using a software inventory tool to track not only what assets there are, but also what installations they have on them. In a merger process this is fundamentally important, particularly if there are any licensing shortfalls coming with the acquisition. All parties need to be made fully aware of this.

Assessing software licensing infrastructure and compatibility

The IT team needs to assess the suitability of the infrastructure and the suitability of the licensing being migrated across. At this point any compatibility issues such as the merger of key business systems from both a software and hardware perspective must be assessed. For example, if one organisation has been using modern hardware and the other has been running dated technology, you may find that neither is suitable for the consolidation of line of business applications and infrastructure.

Existing software licensing agreements also need to be considered. Microsoft contracts may include a ‘future affiliates’ clause that would require the new organisation to be included within the current contract for the existing product sets. This may require an organisation to decide what they are going to negotiate with the vendor and may have a cost implication that the organisation was not expecting.

Step-by-step SAM during a merger

An important first step during the planning stage, when it comes to your Microsoft environment, is to establish an Effective Licence Position. This is effectively an audit on the current estate to understand what risks are current and highlights any potential over licensing. It also helps to establish a current position which will help underpin any move to the Microsoft cloud.

The second part of the process is then to establish the future strategy of an organisation. This should include the various stakeholders in the organisation to understand the current position (financial restrictions, enhanced need for staff mobility etc). Following this, a plethora of options can be formulated – current scenario, movements to the cloud and hybrid environments can all be established with the consolidation of agreements.

It is easy to question why would this be useful in a merger? Well, with new colleagues comes new ways of thinking and working, which can affect the software licensing for an organisation. To be able to ensure compliance and clarify future strategic IT decisions through the proper planning and preparation instantly alleviates that pain.

Software licence management for business strategy in mergers

Following these models being agreed between the two parties, a finalised report (which can be used, and often is, as a business case) can be documented and shared within the organisation so that all options can be referred to with any future procurements.

Merger processes can be a difficult time for Housing Associations. Phoenix Software’s Clarity Software Optimisation Service will not only identify any risks in the current environment, but will also help you build a business strategy for your Microsoft licensing estate moving forward.


Phoenix are NHF Preferred Supplier and can help your Housing Association develop efficient and cost-effective software licensing strategies during times of change. Contact a member of the Housing Associations Team on 01904 562200, email [email protected] or complete the form below:

Although every attempt has been made to ensure the accuracy of the above article, Phoenix Software Ltd cannot be held responsible for any opinions or information provided therein and as such is not liable for any damages caused by a customer’s reliance upon this information.