Business organizations are spending more and more on their IT assets. This cost is expected to increase in the coming years. Studies have shown that businesses tend to spend as much as US$ 259 per desktop for unused software. On an annual basis, it averages 39% of waste for every organization. Lack of communication and improper asset management are believed to be the two main reasons for this overspending. This is where it becomes vital to understand the intricacies of software license management to prevent unwanted expenses and keep the software assets within compliance.

Small and large businesses get equally affected by this overspending on IT assets. In addition, the cost of maintaining a hardware framework, software maintenance, and security audits from vendors can combine to cost a formidable amount for business organizations. A strong license management structure for software assets is the call of the day for businesses all around the world to cut back on unnecessary expenses.

What Is Software License Management (SLM)?

Software license management is an integral part of software asset management (SAM) and includes reducing, documenting, and controlling overall spending on IT. In other words, SLM helps to monitor and maintain the several software licenses that an enterprise owns.

Are There Different Types Of Software Licenses?

Yes, there are several different types of software licenses and all software comes with a user license. Every program that is installed on a digital device or computer is included in a costly enterprise license suite or maybe part of a complicated data center system. The first step towards SLM is to understand the software’s end-user license terms and conditions.

Software licenses may vary with different platforms and maybe even standard though specific details may vary. Some of the most common software license types include:

• Per CPU/per Device – It is only meant for a single machine and could be for a data center device or a user’s machine.
• Per User – It is limited for use by a single user but can be used on multiple devices. However, it requires users to log-in to confirm their identity.
• Per Network – It considers multiple machines on a single network as one.
• Per Subscription – It is managed by a subscription model for device or user and is available for use within a specified time period.
• GPL (General Public License) – It usually accompanies a free-to-use software that can also be copied, shared, and modified completely free of charge.
• Database – Although this is often attached to the device, database licensing types require special care as these are often expensive and have complicated end-user terms and conditions. Their license’s specific terms and conditions may vary depending on the vendor and may often involve multiple cores and servers, and consider whether the software is running or installed on a database. It considers pluggable databases, fail-over, and high availability that makes compliance to its terms and conditions complicated. The vendor may also change their models with time to cope with changes in the market and ensure complete compliance with the dynamic terms, and conditions of use of this type of software license often become difficult without proper SLM.

Saving money is the biggest advantage of integrating effective SLM practices into your business operations. Hence, it is vital to consult with IT experts before buying and creating an SAM team to ensure complete compliance while using the software systems.