Software licensing and compliance

Software licensing and compliance covers various aspects of the lawful use and management of software licenses in companies. This area includes license audits, various license metrics and specific license models.

License audit:

A license audit is a systematic review of the software installed and used in a company in comparison to the licenses purchased. The aim is to ensure compliance and identify potential under- or over-licensing. License audits can be carried out internally or initiated by software manufacturers or external auditors.

License metrics:

The license metric defines the unit of measurement by which the use of software is measured and billed. It is crucial for correct licensing and varies depending on the software manufacturer and product. Common metrics include: 1. user-based metrics (e.g. named user, concurrent user)
2. device-based metrics (e.g. per device, per processor)
3. performance-based metrics (e.g. transactions per time unit)
4. capacity-based metrics (e.g. storage volume)

Specific license models:

1. concurrent user license:
Permits the simultaneous use of the software by a specified number of users. Once the maximum number has been reached, one user must close the application before another can access it. This model is particularly cost-effective for companies with shift work or flexible working hours. 2. named user license:
Assigns a dedicated license to each individual user. Only the named user may use the software, regardless of whether they are actively using it or not. This model is suitable for applications that are regularly used by certain employees. 3. site license:
Allows unlimited use of the software within a defined “site”, typically a physical location or an entire organization. Site licenses often offer a cost-effective solution for large companies with many users.

Challenges and best practices:

1. complexity: The variety of license models and metrics requires a sound understanding and careful management. 2 Compliance: Regular internal audits and effective software asset management are critical to minimize compliance risks. 3. optimization: Accurate analysis of actual software usage can enable significant cost savings through optimized licensing. 4. contract management: Careful documentation and administration of license agreements are essential for effective license management.

Conclusion:

Effective software license management is essential for companies to minimize legal risks and optimize costs. It requires a deep understanding of different license models and metrics as well as the implementation of robust processes for license audits and compliance monitoring. With the increasing complexity of IT environments and the proliferation of cloud-based services, the importance of professional license management will continue to grow.