Forward-thinking businesses are increasingly undertaking digital transformation programmes to ensure improved reliability and efficiency across all departments.
From finance and HR to operations and customer service, a digital-first approach can assist any organisation in improving its output levels to support its customer base.
With digital transformation comes the need for a range of software to support the objectives, and this software inevitably comes with a price. Not only that, there are restrictions on how the software is used, and by whom. These conditions are stated in the software licence agreement; a contract between the software provider and the user entered into upon purchase.
With organisations using a wide range of software for different purposes, it can be easy to lose track of these licences, which could result in legal ramifications from the provider.
Help is at hand though. In this blog we will talk you through how to keep track of your software licences, so you can rest assured your organisation is using them in line with your legal agreements.
What are the risks of losing track of your software licences?
The risks associated with poor software licence management range from overspending through to fines and legal action.
It’s prudent to ensure that you fully understand the terms and conditions you are agreeing to, and that they are right for your organisation and how you need to use the software.
From an in-house perspective, poor licence management can have consequences in terms of security, GDPR and operations. It’s vital that you know who is accessing what software, and that you only provide access for those team members who need to use it.
As a general rule, team members should only be able to utilise the software and data needed for their roles. This reduces the risk of unauthorised data usage and limits the avenues for hackers to access your systems.
Ensuring your staff have the correct access to the software they need will also help you guard against the downloading of additional software, which in itself could bring added security threats.
In terms of being prudent, keeping track of your licences will allow you to plan ahead to ensure you’re purchasing the right products for the right users, and not overspending unnecessarily. It will also help you be on the front foot if your business or organisation is audited…
What is software auditing?
As part of garnering feedback from your teams, it’s crucial that they understand the ‘why’ behind it. You will need to be an ambassador for positive change and an advocate of digital growth.
Software audits are often referred to in the licence agreements. It’s basically a clause that gives the software provider power to conduct a check on your business to ensure you are using the product in line with the agreement.
Some companies choose to undertake internal software audits to confirm that they are on the right track and not in breach of any of the accepted terms and conditions. Taking this proactive approach can help organisations to avoid hefty fines through non-compliance whilst allowing a greater understanding of software need and usage. This helps to avoid unnecessary spend on unused products and licences.
What are the challenges in tracking software licences?
Whether your business is an SME or a multinational, the challenges in terms of tracking software licences are very real.
Manually tracking licences gets harder as a company grows, and without a centralised overview of all software purchases and licences, things can get unwieldy quickly.
Analysing the number of licences your organisation has for each software product compared with the number in use is not always straightforward, but is needed to help you understand whether you have the correct subscription for your needs, or if you are overusing the product outside of the agreed licence terms.
Monitoring your organisation’s usage and tracking software downloads will help you to further understand whether you have the correct subscription level and can also help you avoid unnecessary auto-renewals.
To do all of this effectively and efficiently you will need to look at using some bespoke tools.
Software metering and licence management tools
Software metering tools are available to help you to formalise your software licence tracking, keeping you on the front foot.
They can support your IT department in analysing subscriptions, usage and renewals. They can also help to control software download and installation and support you in conducting an internal software licence compliance audit.
Software licence management tools are platforms that allow you to collate all of the information about your licences in one place. From number of users to renewal dates through to real-time visibility of licence usage, they can give you a comprehensive understanding of how, when and by whom each software product is being used.
This will give you clarity on whether software is being used in line with the licence agreement, if user access needs to be revoked or if your subscription needs to be upgraded, reduced or even cancelled.
A software licence management tool can therefore save you hours and hours of labour-intensive work, whilst helping you to avoid a fine through a breach of contract.
Think before you buy
To help keep costs down and avoid unnecessary spend on extra licences, having an overview of usage is key.
You wouldn’t purchase a new keyboard if there was a perfectly good one sitting on a desk, not being used. So why would you think about software licences differently?
It may be the case that you can reallocate an underused licence from a team member to someone who needs it, rather than shelling out for the new licence without checking.
We would also recommend having a conversation with the software provider, particularly if you are looking at spending significant amounts of money on multiple licences. You may be able to negotiate a cheaper deal, or a more flexible arrangement in terms of usage.
Get your staff on board
As with any element of your business or organisation, your staff are vital to ensuring standards are met and rules are followed.
We recommend discussing your licensing needs with us, especially if you’re planning to invest significantly in multiple licences. As experts in negotiating with various software providers, we can secure better deals and more flexible arrangements on your behalf.
Talk to us
Licence audits and compliance can be a consuming task for any IT team.
At Parseq we provide outsourcing to support your digital transformation, such as our software licence resale solution which includes analytics, visibility dashboards and instant operational insights.
Contact us today to ensure your organisation is on the front foot when it comes to keeping track of your software licence agreements.
