Software Renewals: The Smart Checklist Every Business Needs

The end of a fiscal year calls for software renewal.

Just like a well-oiled machine, software systems require regular updates to continue delivering optimal performance. Today, software renewal isn't a routine task anymore. Instead, it's a strategic investment in keeping pace with innovation. 

With the right tool at hand, like G2 Track, the software renewal process and management can be relatively simple. However, along with that, keeping a set checklist and knowing how to prepare for renewal season provides more benefits than just updating your contracted licenses. 

How to prepare for software license renewal

Before initiating the software renewal process, you must analyze the current licensing needs and budget considerations for your organization. After this analysis of your current software situation, you have a couple of options going forward with the license renewal.

1. End agreement: If you realize the software you are using isn’t all that, you can make the decision to switch at the end of the lifecycle. 

2. Renew and negotiate: If you find that some of the identified disadvantages are fixable, renew the agreement but ask to negotiate a couple of terms. You can leverage the potential loss of business for a better software contract. 

3. Renew agreement: If you’ve come to the conclusion that you are satisfied with the software solution and want to move forward as is, renew it. While it might be tempting to continue to renew year after year without revisiting the checklist above, it is not a good step to skip. Your business needs can change over time, possibly demanding new software features or even new products. 

Software renewal checklist

Automating your tech stack before its renewal date can save time, and it's a great method for keeping track of your current spending and annual maintenance, but you might be overlooking some opportunities to find places to save and negotiate new deals with your suppliers. 

Before renewing your current software license agreement, pay attention to the following factors. 

1. Usage: Consider what you are currently paying for and how much the software is actually being used. The results might bring up an opportunity to switch up the payment model and save on your software spend before reaching any expiration dates. 
2. Upgrades: Take a look at your history with this particular product. If you have been looking for a new feature, check out what the upgrade options have to offer. If you are happy with the version you’ve been working with, there is no need to upgrade. 
3. Support: Look at the records of your interactions with the technical support team. If you haven’t been using their services very often, maybe downgrade to a cheaper software maintenance option. 
4. Purchase history: Check out how your business has been buying the software. If you have been making recurring payments that are harsher on the business bank account, consider switching to a lump sum that will end up saving you some money in the long run. 
5. Contract: Re-read your software contract and ensure there are no risks associated with signing on the bottom line. 
6. Pricing: Compare similar SaaS tools and their software licensing prices. If a competitor is offering the same features and support for the same price, consider making a switch. 
7. Negotiation: Once you've decided you want to renew, make sure to prepare for contract negotiations well. Consider bringing up things like past issues with customer support, pricing competitiveness, change in user count, upgrading your tier, etc.

There are countless options in any software category. When making your buying decision, no audience is better to listen to than actual end-users of the product. Head over to G2 to check out verified, third-party user reviews for the real deal. 

How G2 Track supports software renewal management

Keep up to speed on your software spend, contract renewal deadlines and compliance with G2 Track. This SaaS system of record equips you with the knowledge you need to choose what's best for your business. 

• Centralized software inventory: G2 Track offers a centralized repository to manage your organization's software inventory. This includes details on each software application, its usage, and renewal information.
• Renewal notifications: The platform offers renewal notifications and alerts, helping you stay informed about upcoming software renewal dates. This approach helps prevent unintentional lapses in your software subscriptions.
• Vendor relationship management: G2 Track improves vendor management by centralizing vendor communication and information. This is valuable when negotiating renewal terms or discussing contract changes.
• Compliance monitoring: Ensuring compliance with software licenses is crucial. G2 Track allows you to monitor software usage against licensing agreements, helping avoid compliance issues during the renewal process.

To renew or not to renew 

That is the question. And it is not necessarily an easy one to answer.

As your business develops, the software products and features you need to succeed might change as well. While it may not seem as if you need to switch things up, evaluating your current situation and alternatives is a good practice to partake in every time software renewal season comes around.

Renewing software is a big part of staying compliant. Check out our resource on software compliance for more tips on abiding by software law.