Software license violations account for some of the harshest penalties in the current era. Afraid of the repercussions, businesses have started ensuring compliance with the licensing norms before using the software.
However, managing the ever-increasing number of licenses becomes challenging with the growing dependence on software-based automation.
It is here that software license management tools become essential. The software license management market is set to reach a valuation of USD 5 billion by the end of 2030. Here’s a guide about the benefits and best practices in software License management. Let’s get started!
Benefits of Software License Management
Here are three benefits of software license management.
- Lower costs
Software License Management gives purpose to your software investments. It does so by identifying the unused software and the potential license violations, which ultimately translate into substantial financial burdens for your organization.
Fines for software license violations can be up to $150,000 per instance. So, Software License Management does have an impact on lowering business costs.
- Better Budgeting
Software use is all about paying for a license that allows you to use the software per your requirements.
But, without proper license management, the chances of buying unnecessary licenses are high as the purchase will not be aligned with analytics and strategies.
Making purchases that best fit your budget are possible only with software license management software.
- Risk Reduction
Software license management can go a long way in reducing potential risks.
Businesses do need a plethora of software, but if you don’t manage the licenses prudently, there are chances that you forget to renew them in the time leading to a violation.
A Software License Management program will keep you updated about renewals, preventing you from getting penalized when the vendors decide to conduct audits.
Types of Software License Management
Here are three types of software license management.
- Open-source software
Open-source software is released with a license that allows it to be publicly accessible. The rights include the ability of the end-user to study, distribute, use, and change the software for any purpose.
Mozilla Firefox and Apache HTTP Server are examples of the same.
- Public Domain Software
Public domain software is available in the public domain and has no legal ownership or copyright.
There is no editing and sharing restrictions on such software. Examples include SQLite, CERN HTTPd, etc.
A shareware version is a free or trial version that the developers provide to users who may wish to purchase it.
The free term generally has a built-in expiration date beyond which the user must pay to access the software. WinZip and Adobe Acrobat offer shareware versions.
Best Practices for Successful Software License Management
Four tips for successful software license management are as follows:
- Use IT Asset Management Software
IT asset management tools help you create centralized machinery to manage your digital assets.
A good IT asset management solution will also have license management under its purview.
This way, you will get regular updates about software licenses on the same dashboard through which you manage other aspects of IT control.
- Obtain Licensing Documentation
To start with software licensing management, you need to get all license information in one place.
A hardware asset management and an IT asset management software can help because they serve as central repositories for all different licensing details.
Further, you can assign a license manager to maintain due compliance.
- Clean Up and Organize Your License Inventory
You can’t help purchasing new software licenses due to the growing operational needs.
However, as per the analytics and usage requirements, getting rid of the redundant licenses is helpful too.
The license inventory should be decluttered to make all upcoming renewals easily traceable.
- Catalog Your Software
Making an index of all your software that contains their details, along with mentioning the allied products, can be helpful in license management.
You can quickly look up the licensing details of any software product to know which one is due and when.
Infraon delivers comprehensive asset management services for businesses small and large. We optimize asset usage and make the deployment of software solutions meaningful and compliant. To know more about what we do, contact our team today.