Effective software license management strategies

Understanding software licensing

Before implementing software license management strategies, it’s essential to understand software licensing in detail. Software licensing is a legal agreement between the software vendor and the user. It specifies the terms and conditions for using the software, including the number of users who can access the software, the number of installations, the duration of the license, and the features available.

There are primarily two types of software licenses – Perpetual and Subscription. Perpetual software licenses allow users to use the software indefinitely, with a one-time payment. Subscription licenses, on the other hand, require users to pay for the software periodically – usually monthly or annually.

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Create a comprehensive inventory

Once you understand the software licenses you’ve acquired, it’s essential to take stock of them. Creating a comprehensive inventory of your software licenses enables you to track which licenses are in use, and those that are not. This information is critical in making informed decisions regarding your software licenses, which can save you time and money.

You can have your IT department develop a comprehensive inventory, or use a software license management tool, to create and maintain an up-to-date inventory. This inventory should include all purchased licenses with their name, version, purchase date, license type, and expiration date.

Implement License Recovery Processes

Recovering software licenses that are no longer in use, or have exceeded their expiration date, will decrease software costs. License recovery is the process of either regaining licenses that are lost, uninstalled, or unused, and allocating them to other users who need them. By implementing license recovery processes, you can reclaim unused licenses from terminated employees, repurpose them, and avoid unnecessary software expenses.

The process of recovering licenses involves conducting an audit to determine which licenses are underutilized. IT administrators can then recover these licenses and either re-allocate them to other users or cancel them, depending on the software licensing agreement.

Automate license management

License management can be a tedious and complicated task. Automating this process saves time and improves accuracy. Automating license management involves using software that can monitor software usage, identify redundant licenses, and manage license allocation.

Automated license management assists the IT team in monitoring software usage continually and identifying potential issues without manual intervention. This innovation helps you avoid common software licensing problems, such as over-licensing or under-licensing. Automated software provides IT administrators with up-to-date information to make informed decisions regarding licensing.

Educate employees on software license management

Making sure employees understand software licensing can significantly reduce unnecessary license expenses and potential legal implications. Very few business owners invest time in educating their employees on licensing, leading to unintentional licensing infringement. Employees may use unlicensed software, share licenses, or install software on unauthorized devices unknowingly.

Training employees about the organization’s software license policies and the importance of managing software licenses will increase employee awareness and reduce the possibility of unintentional software licensing violations. By educating employees, the organization can create a culture of compliance.


Proper software license management is essential in optimizing license spending and ensuring compliance. These software license management strategies help businesses save money by ensuring they have the right number of licenses for users’ current needs, managing licenses appropriately, and minimizing the risks associated with non-compliance. We continuously aim to enrich your educational journey. That’s why we recommend visiting this external website with additional information about the subject. softwarelicensemanagement.tangent.com, find out more!

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