Software licenses are a significant expense for many IT organizations, but they can also be a source of savings if managed effectively. In this article, you will learn some best practices for managing software licenses to reduce costs and optimize your IT assets.
The first step to managing software licenses is to know what you have and what you need. You should conduct regular audits of your software inventory to identify any unused, outdated, or redundant licenses that can be eliminated or consolidated. You should also track the usage and performance of your software to ensure that you are not overpaying for features or capacity that you do not need. Auditing your software inventory can help you avoid compliance issues, security risks, and wasted resources.
The second step to managing software licenses is to choose the right licensing model for your business needs and budget. There are different types of software licensing models, such as perpetual, subscription, metered, or concurrent. Each model has its own advantages and disadvantages, depending on factors such as the size, scope, and frequency of your software usage. You should compare the costs and benefits of different licensing models and negotiate the best terms and conditions with your software vendors. Choosing the right licensing model can help you reduce upfront and ongoing costs and increase flexibility and scalability.
Right-sizing software licensing is crucial to optimizing your spending. For example, does everyone in your organization really need a Microsoft 365 E5 licenses or could some employees work just fine with a less expensive E3 license?
The third step to managing software licenses is to implement a software asset management (SAM) tool that can automate and streamline the process of tracking, monitoring, and optimizing your software licenses. A SAM tool can help you collect and analyze data on your software inventory, usage, and performance, and generate reports and alerts that can help you make informed decisions and actions. A SAM tool can also help you enforce policies and standards, manage contracts and renewals, and ensure compliance and security. Implementing a SAM tool can help you save time and money and improve your IT efficiency and effectiveness.
The fourth step to managing software licenses is to optimize your software portfolio by aligning it with your business goals and priorities. You should evaluate your software portfolio regularly and identify any gaps, overlaps, or opportunities for improvement. You should also review your software requirements and demand and adjust your software licenses accordingly. You should also consider alternative solutions, such as open source, cloud, or SaaS, that can offer lower costs, higher quality, or better functionality. Optimizing your software portfolio can help you enhance your IT value and performance and support your business objectives.
The fifth step to managing software licenses is to educate and engage your users on the importance and benefits of software license management. You should communicate clearly and consistently with your users about the policies and procedures for requesting, using, and returning software licenses. You should also provide training and support to help your users understand and comply with the licensing terms and conditions. You should also solicit feedback and suggestions from your users on how to improve your software license management. Educating and engaging your users can help you foster a culture of collaboration and accountability and increase user satisfaction and productivity.
The sixth step to managing software licenses is to monitor and measure your results and evaluate the impact of your software license management efforts. You should define and track key performance indicators (KPIs) that can help you assess the effectiveness and efficiency of your software license management. Some examples of KPIs are software license costs, savings, compliance, utilization, and quality. You should also conduct regular reviews and audits to verify and validate your results and identify any areas for improvement. Monitoring and measuring your results can help you demonstrate and communicate the value and benefits of software license management and support continuous improvement.