Software License Management Tool

Software license management (SLM) involves ensuring your enterprise has visibility into and control over software licenses and contracts. It’s part of the larger practice of software asset management, which includes supervising all the moving parts of a company’s hardware and software components.

Enterprises need to be able to manage software licenses and assets, including how they are acquired, deployed, maintained, used, and phased out. This can include gaining insights into the status of cloud and on-premises software. To ensure a successful software asset management process, users should consider the following best practices for effective software licensing management and tracking:

• Procurement: As you purchase software, you should document new programs and standardize how you track the licensing terms.
• Inventory: Users should catalog current licenses, systems, and software so they have an overview of their current assets.
• Software usage: Do you know how your business software is being used, altered, or distributed? This requires audits and policy enforcement to ensure there are no gaps between agreements and reality.
• Resources: You should use software license tracking data to determine whether you have an excess of licenses or are missing critical licenses.
• Updates: A failure to update software can cause compliance and security gaps. Tracking updates can help you ensure your software and licenses are up-to-date.

Software asset management can be critical for organizations to remain compliant with software licenses and can help ensure resources are being used appropriately. Software asset management is also included in the Information Technology Infrastructure Library (ITIL) as a key business function capable of ensuring software is managed throughout its lifecycle.

End-user license agreements (EULAs) outline the specific terms and conditions of software usage. If violated, license agreements can lead to high legal costs and can impact an enterprise’s reputation. With software license tracking in place, users can proactively address and avoid the legal risks associated with violating software license agreements.

Software license tracking is also important for businesses with networks of users. Having more visibility into and control over how software licenses are used can help make sure users are leveraging programs appropriately and ensure you have the right number of licenses. Businesses may be wasting resources if their software purchasing does not align with their license usage.

Software licenses are legal guidelines governing the use and redistribution of software. Licenses exist to protect software copyrights and restrict inappropriate actions such as copying software, making multiple installations, or altering software code.

Common types of both on-premises and cloud software licenses include the following:

Proprietary vs. Open-Source Licenses

Proprietary: Businesses must track and understand all proprietary licenses, which can restrict how software can be used and changed. Although a EULA may allow you to use a program, the ownership and rights of the program remain with the software publisher, so you cannot modify or redistribute the software.

Open-source: Open-source licenses are permissive about usage and alterations to varying degrees. A public domain license means there are no restrictions on software modification. However, the lack of a license doesn’t necessarily mean the code is in the public domain. Permissive licenses have a few restrictions on use—Apache, for instance, uses this type of license. Freeware simply describes software users can access without paying a fee.

License Length

Perpetual: A perpetual license lets customers install and use a program indefinitely—once you purchase the software, you typically don’t have to pay additional fees down the line. However, technical support and updates may only be available for a specific length of time or for a fee.

Subscription: This licensing model lets users access and run the software for a specific length of time or for as long as they continue to pay the subscription fee.

User Licensing for Businesses

Businesses should know about a few types of software licensing that can affect the ability to have multiple users:

Concurrent use: This type of license requires a separate license purchase for each user if you want several users to be able to access the software simultaneously.

Volume: With a volume license, businesses purchase a minimum number of licenses to receive a discount and can install the program on a specific number of workstations.

Site-specific: A site-specific license means you can only use the software at a particular location.

Server: With a server license, businesses get a license for each server, and a set number of devices can access the software on the server.

A software license manager can improve your business’ workflow and functionality:

• Minimizes disruption: A manager tool keeps software licenses up-to-date and valid, helping avert downtime and delays caused by expired licenses.
• Reduces expenses: With search filters and a user-friendly interface, licensing management software helps you avoid unnecessary purchases of already available licenses and identify paid ones that aren’t being used.
• Automates tracking: Real-time visibility into license usage and availability allow you to make informed decisions about purchasing and deploying more.
• Simplifies license storage and access: No more searching through folders or emails for keys—a license management tool provides a centralized repository of what you need, making it easy to access information whenever needed.
• Automatically generates reports: Knowledge is power. Get detailed reports on usage, availability, and compliance to make informed decisions, identify areas of potential cost savings, and ensure compliance with agreements.

The SolarWinds Service Desk’s software reconciliation feature is a powerful tool to help your organization track its software usage and identify compliance issues.

By analyzing your software usage and license entitlements, the software reconcile feature helps ensure that your organization complies with software license agreements. It can also help you optimize your usage by identifying which software is used the most, helping you determine if purchasing additional licenses or investing in alternative software solutions is truly worth it.