Software Asset Management (SAM) – NHS LPP Members’ Efficiency Initiative

At a glance

Category: Digital & Technology Solutions

Initiative: Software Asset Management (SAM) Members’ Efficiency Initiative

Customers: Eight NHS LPP member organisations to date

Delivery partner: Phoenix Software Limited (Phoenix)

Savings opportunity identified: £1.14 million

Cost to NHS LPP members: Zero cost – the comprehensive Gold SAM assessment for members for one software supplier is fully funded upfront by NHS LPP

Key benefits: Clear visibility of where software licenses are being over or underused and where efficiencies and optimisations could be made, leading to reduced risk and unnecessary software expenditure and improved licence management.

The challenge

Behind every software contract are NHS staff trying to keep essential NHS services running. ICT colleagues maintaining systems and managing supplier relationships, procurement teams sourcing requirements and managing agreements and operational staff relying on technology to do their jobs effectively.

Over time, software estates can become difficult to track and purchasing decisions can become reactive rather than strategic. Licences may remain in place after requirements change, older products may still carry costs, risks and vulnerabilities, or organisations may be paying for a licence type or quantity that no longer matches their needs.

For the teams responsible, finding opportunities for efficiencies, optimisation and savings means bringing together technical resource/information and commercial knowledge while continuing to deliver the demands of their everyday work.

NHS LPP want to make that task easier. By partnering with software specialists Phoenix Software Limited and leveraging their expertise, the aim is to help members understand their software position and identify unnecessary expenditure and risks through a supported assessment that would place as little pressure as possible on local resources.

Our approach

NHS LPP work collaboratively with Phoenix to provide specialist software asset management support and expertise, with NHS LPP fully funding upfront for members the assessment of one software supplier of their choosing.

The process brings together the organisation’s procurement and ICT colleagues, supported by NHS LPP and Phoenix. Participants have included digital services operations managers, asset and licensing officers, technical project and resourcing managers, and heads of ICT.

Their involvement helps connect the assessment to the organisation’s needs and strategic goals: including insights into what software supports its services, what information is available and where a closer review and further investigation could be useful.

Following a kick off meeting, Phoenix’s technical team supports the data extraction process, which typically takes between 60 and 90 minutes. Information can be drawn from Phoenix’s proprietary tools, existing inventory tools, and relevant software environments, helping establish a clearer picture of the organisation’s estate.

The assessment then examines whether licensing arrangements match operational requirements and where changes could reduce unnecessary costs in the short, medium, and long term. Depending on the software selected and the quantity of users/licences, the process typically takes around 60 days with timely input and ongoing collaboration from everyone involved.

Throughout, NHS LPP facilitates as much of the work as possible. Members do still need to commit procurement and ICT resource and time, but the approach gives those colleagues access to specialist support and expertise without asking them to undertake the review alone, therefore reducing their time required to spend on the task and making it easier for them.

The impact

To date, £1.14 million of savings opportunities have been identified across eight participating member organisations.

For participating members, the value lies in having a clear picture and understanding of the software estate and where action could make a real difference. A clearer view of licences and requirements can help colleagues make optimisation and efficiencies changes, manage risks, interrogate expenditure, identify software that is no longer needed and consider whether a different licensing arrangement would better meet their needs.

The assessment also provides a stronger basis for conversations between procurement and ICT. Bringing commercial and technical information together helps both teams understand the choices available and the benefits of implementing them.

The financial and other tangible benefits depend on the actions each organisation subsequently takes following the assessment. Alongside potential savings, effective software asset management can support compliance, reduce legal and financial risks, and help align software investment with operational needs.

What the customer said

Daniel Montague, Chief Procurement Officer, North East London NHS Foundation Trust said: "The Microsoft Software Asset Management assessment provided NELFT with a much clearer understanding of our software estate and licensing position. The insights from the assessment supported our recent Microsoft renewal by giving us greater confidence in our decision-making and helping ensure that licensing requirements were aligned to organisational need. While a significant proportion of the savings realised as part of our renewal programme came from our transition to a central tenant model, the assessment played an important role in providing the visibility and assurance needed to support those decisions."

Liam Tucker, Category Manager at NHS LPP commented: “If you have a renewal or anniversary approaching for a major software vendor, or contract this service is perfect for you. Ideally don’t wait until you are over licensed or over-spending – early visibility and optimisation can make a significant difference.”

Why it matters

Unnecessary software expenditure can be difficult to spot within a busy organisation. Addressing it requires time, evidence and people who understand both the technology and its licensing.

This initiative makes that expertise more accessible to NHS LPP members. By fully funding the assessment and supporting local colleagues through the process, we help organisations investigate potential efficiencies with limited demands on their teams’ resources.

For staff, that means clearer information to support purchasing and licensing decisions. For organisations, it creates an opportunity to reduce avoidable costs and direct resources towards their priorities, including patient services.

The wider benefit is a better-informed approach to software management, giving teams greater confidence that the licences they pay for reflect what their organisation needs.

 

Savings quoted are correct at the time of publishing: 14 October 2026