Free Edition Software costs are escalating - and with the exponential growth in IT assets across industries, it is crucial that software licenses be monitored to prevent over-provisioning or under-utilization.
This guide gives you a detailed view of how software license management can be streamlined with usage-based analytics, the key benefits achieved from a consistent software licensing practice, and how Endpoint Central can simplify the software license management process for you.
Software costs make up a significant portion of IT budgets for any organization.
This surge in escalating software expenditures iterates the need for optimizing the software licensing process to limit capEx and improve ROI. Here are some of the key reasons why organizations should embrace IT asset management tools to manage software licenses.
Most software offers multiple licensing models - perpetual, subscription-based, concurrent, usage-based, and more. Subsequently, each model has its own set of terms and associated costs.
Managing these diverse licensing agreements across various vendors and platforms can be daunting. Furthermore, the lack of clarity or misinterpretation of the license agreements can result in either underutilization or non-compliance - thereby leading to financial complications.
In a bid to ensure compliance with licensing and prevent software piracy, software vendors have intensified audit activities. In case of non-compliance, for example, if a cracked version of commercial software is being used by a user, this might lead to hefty fines or consequences (as outlined in the software agreement) and can also tarnish the organization's reputation.
Lack of overall visibility on the software usage in an organization leads to poor utilization of the software resources. As a result, a significant number of software licenses remain underutilized.
Several factors like employee attrition or replacement, departmental changes, or even the lack of awareness of the available tools contribute to the wastage of expensive software licenses. All of this adds up to the IT budget, thereby increasing unnecessary expenditure.
When it comes to negotiating with software vendors, it is imperative that the procurement teams have accurate data on the software usage and requirements in the organization. Understanding the actual needs of the business can prevent over-provisioning, securing discounts on bulk purchases, and selecting the appropriate models. This approach ensures the optimal allocation of funds for commercial software in the long term.
Usage-based license management is the process of monitoring and analyzing the software utilization stats in an organization, by its employees. This process helps IT teams make informed decisions about license procurement, software allocation, and renewals.
Fixed allocations of software resources and licenses can be impractical in the long term, especially for growing businesses that continually shift policies with changing market needs. Hence, it is imperative to analyze the usage patterns and make informed decisions, when it comes to provisioning software licenses.
Streamlining software licenses based on usage forms one of the key concepts of structured IT asset management and governance. Here are some of the key benefits that IT teams and organizations can derive from it:
Organizations buy licenses in bulk. Hence, it might be not easy to measure the actual usage, leading to over-provisioning. Implementing an ITAM tool to analyze the usage can help:
With the increased frequency of software audits by the vendors, implementing usage-based license management:
Understanding the usage requirements takes the guesswork out of procurement. As a result:
Here is a step-by-step approach to how organizations can implement usage-based license management:
Step 1: Creating a software inventory
A well-defined software inventory provides IT teams with the much-required visibility on
Step 2: Monitoring continuous usage by end users
Collect and analyze the usage stats, both historical and in real-time on:
Step 3: Creating usage policies and thresholds
Creating usage policies can help in identifying software that is underutilized. For instance, for defining an underutilized software, the policies can be:
Once these conditions are met, the software will be marked as underutilized, and based on the policies, the next steps, i.e. reallocation or reclaiming can be established.
Step 4: Taking action based on usage stats
It is crucial to ensure that all the changes are well-documented and in accordance with the vendor agreements.
Step 5: Educating the employees and other stakeholders
As important as it is to implement tools to streamline the license management process, it is also vital that employees are aware of the drawbacks of "over-requesting" software and end up not using it. To instill the idea of responsible usage, IT teams should:
ManageEngine Endpoint Central - a unified endpoint management and security solution that offers a full-fledged IT asset management functionality, enabling seamless usage-based license optimization.
Here’s how Endpoint Central's features can help:
| Feature | Description | Benefits |
|---|---|---|
| Software Metering | Tracks how often and how long each application is used across endpoints in real time. |
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| License Repository & Tracking | Centralized dashboard to manage all license details, including vendor info, type, allocation, and expiry. |
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| License Compliance Audits | Maps installed software with purchased licenses to detect over- or under-utilization. |
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| Automated Alerts | Sends reminders for expiring licenses and alerts for policy violations or non-compliant installations. |
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| Software Uninstallation | Allows IT admins to remotely remove unauthorized or underused software. |
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