How to Outsmart Your Peers on Software License Management



Business organizations spend more and more on their IT department every year. Various research studies have shown the exponential growth of IT spending by small and large businesses worldwide. The reports also show that most businesses tend to lose significant amounts of money on unused assets and IT resources. However, with the best practices in software license management, companies can now save remarkably on their IT asset requirements. 

Small and large businesses alike cannot afford to lose money on underutilized assets and resources within the organization, as there are additional costs of asset maintenance associated with these. 

An ideal solution to avoid such a scenario is to have a reliable and reputed software license management tool integrated into your business system. 

About Software License Management

Software License Management (SLM) is an integral part of the more comprehensive Software Asset Management (SAM). It includes decreasing, documenting, and controlling the cost of IT assets within an organization. 

In simple words, SLM helps a business organization to supervise and maintain the various software licenses belonging to the business. 

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How to Outsmart Your Peers on Software License Management

Types of Software Licenses

All software has a type of license attached to it. The license could outline the terms and conditions of installing the software, its use, and maintenance. It is highly recommended to understand the specific terms and conditions of the user contract for software used by your business. 

There are different user-licenses issued for software running on different platforms but are mainly standard overall. Normally, a software user license will be of the following types:

  • Per CPU / Per Device – This license only allows software use on a single machine, whether it is the end-user or data center service.
  • Per-User – This license is restricted to an individual user and allows the software to be used on numerous devices and needs the user to log-in with their unique ID. 
  • Per Network – This license type covers software to use on every machine within a specified network. 
  • Per Subscription – This software user license is subscription-based and normally valid for a limited time.
  • GPL (General Public License) – This type of software license comes with a freeware (free software) and allows usage, sharing, copying, and even modifying for no charge. 
  • Database – This is a special type of user license, which is often complex and expensive and covers use on multiple cores or servers. 

Advantages of Software License Management

A major advantage for a business with a software license is the ability to cut unnecessary costs. As the software license helps administrators monitor your software purchases, it ensures that every license is accounted for and utilized to its full extent. 

An immense advantage of any SLM is that it plays an important role in ensuring that all software is used within their end-user license agreement’s terms and conditions. This is excellent to avoid hefty fines and penalty charges for non-compliance. 

Research studies have shown the avoidable expenses that companies pay for non-compliance with end-user agreements for software systems can be avoided with the help of software license management tools.


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