Software Licensing Management Explained: A Complete Guide

The technique of managing software licenses used throughout the business from a single interface is known as software licensing management (SLM). A software license is a legal agreement created by software publishers or distributors that outlines the rules and procedures for using and distributing software. 

Terms & conditions, limits, limitations, and disclaimers are often included in this document. As part of software asset management, a Software License Management system tracks, records, and controls how and where software is utilized in your business. 

A software licensing management solution can help you comply with license agreements, sometimes known as end-user license agreements (EULA). A licensing management program may also be used to warn you about license expiration dates, and over-use or under-use of licenses through the use of software metering.

What Exactly is Software Licensing Management?

SLM, or software licensing management, is a component of overall software asset management (SAM) capabilities that entail the process of minimizing, documenting, and managing total IT expenses. 

In a nutshell, SLM is a strategy for monitoring and maintaining all of your organization’s software licenses.

What are the Types of Software Licenses?

Whether the application is installed directly on the desktop or digital device, is part of a pricey corporate licensing suite, or is part of the complicated data center eco-system, almost all software has some kind of license linked to it. 

Understanding your contractual conditions relating to the sort of software licenses your firm uses is one of the first steps you must take in licensing management.

License types differ per platform and are largely standardized, albeit they vary depending on the negotiated contracts between an organization and its providers. Examples of typical kinds include:

• Per device or CPU

Only designed for one computer, whether end user or data center device.

• Per user 

Limited to one user who may use it on numerous devices (such as their desktop and laptop), the user must check in to authenticate their identification.

• Per network

Applies to all machines on a particular network.

• Per subscription

A subscription for a user or device generally has an expiration date.

• General Public License (GPL)

This license applies to software that is free to use, distribute, copy, and modify (freeware)

• Database

Due to their high cost and complex licensing constructs, which vary by vendor and may include multiple servers or cores, running versus installed databases, “all you can consume licensing,” and other things, database licensing types need special consideration even though they are frequently aligned with the device.

The implemented models, which include high availability, fail-over, and pluggable databases, further complicate compliance and true-ups. Vendors’ models change constantly, and remaining in sync with the marketplace to ensure continuing compliance may be a time-consuming, ongoing process.

How to Manage Software Licenses?

Better management of software licensing is a vital aim for large and developing businesses, as it will help them stay legal and informed at all times. 

However, many people are unsure where, to begin with, license management, or which strategies to employ while tackling the work. We’ve put our five best practices for license management here to help you understand the process and get started.

• Gather your software licenses and relevant documents

Make a list of every software license you own and save it in a single location. This will give you a decent understanding of your licensing entitlement, or which licenses you legally have the authority to utilize and assign to workers. 

Make sure you’re aware that this now includes not only desktop apps but also all cloud subscriptions. In addition to the licenses you already have, gather all associated information that will be useful to have on hand when you need it, such as purchase expenses, maintenance contracts, and service fees. 

To be quite honest, this is not an easy task! Putting all of this information in one place may take some time and effort, but it is a necessary first step in good licensing management and will allow you to simply monitor license usage and issue licenses as needed.

• Costs and spending should be tracked regularly. 

Many firms discover that they are squandering money on licensing unknowingly because they lack the skills to handle these expenditures. Make a breakdown of your software expenses to gain a clear idea of total costs and costs per user. 

Create reports to better understand previous, present, and future spending trends so you can prepare accordingly. Future spending is a very crucial indicator to be aware of since it may help you anticipate how much you will spend in the future and hence optimize as required.

Do not rely on your email inbox for license documentation; it is insufficient. Important purchase documentation, licensing agreements, and maintenance contracts must be maintained and managed, but they can easily go misplaced in a congested email inbox. 

Instead, keep these documents in a safe and convenient location, such as a licensing management system or another tool that may help you with this process.

• Costs and spending should be tracked regularly. 

Many firms discover that they are squandering money on licensing unknowingly because they lack the skills to handle these expenditures. Make a breakdown of your software expenses to gain a clear idea of total costs and costs per user. 

Create reports to better understand previous, present, and future spending trends so you can prepare accordingly. Future spending is a very crucial indicator to be aware of since it may help you anticipate how much you will spend in the future and hence optimize as required. 

These reports can also notify you about licensing and budget availability, allowing you to make the most use of these resources. This tracking may be done manually, but as these jobs get more numerous, you may find it much easier to use a system to assist you.

• Set up reminders. 

It might be difficult to recall all of the duties that must be accomplished during a hectic workday, and some will certainly slip the memory. Use this approach for licensing reminders just like you would for regular meeting times on your desktop calendar. 

License subscription renewals, maintenance schedules, and approvals should all be scheduled as reminders by email or another channel of your choosing. Without reminders, these critical events may go undetected, causing you to fall behind in compliance and licensing management.

• Make software license management a priority in your company. 

Finally, it is critical to prioritize licensing management as a corporate priority. This entails telling all relevant personnel of the next phases, as well as simply summarising the process to others, even if it is not part of their department. 

The IT team should take the lead in developing and explaining processes and procedures to the appropriate teams. License management will become a routine part of the business if everyone is kept informed and suitable policies are in place, and your corporation will never have to worry about satisfying compliance standards.

Different License Management Software available in the market are:

• Setyl
• Zluri
• EZOfficeInventory
• Universal Type Server
• Asset Sonar
• Blissfully
• Euladox
• License Assist Manager
• ITMC Lifecycle
• Cryptolens

Conclusion

Strong asset management is critical to your business and corporate budget, whether you are a tiny start-up or a big operation. 

By adhering to effective software license management methods, you can swiftly respond to market requirements, optimize your company’s earnings, and, most importantly, maintain compliance, protecting both your assets and your company’s image.