Contract Management

Software License Management (Best Practices + Benefits)

May 20, 2020

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Manage Software Costs

Ensure your business isn’t wasting spend on unused tools and licenses.

Do you know how much your company’s software costs?

It depends on the size of your company and what your budget looks like, but it’s rare that the answer is $0. We all know software is expensive, and the spend on it shouldn’t be wasted. 

But it is. Every year, thousands, if not millions of dollars could be saved because of unused seats, the availability of integrations, and the lack of software usage altogether. 

You’re spending money on software, but are you looking for ways to save it? 

If not, you should be. 

Software license management

From startups to enterprises, no company has a limitless budget. Because the amount of money spent on a software license can easily venture into the thousands, managing that spend should be top of mind to make the most of your SaaS budget

Regardless of what the program is used for, how many people are using it, or where it’s being used, nearly every software has a type of software license attached to it.

Best practices for software license management

Before best practices can be implemented, it’s recommended that your organization invest in software to manage your software. While this might seem silly or repetitive, the benefits of being able to see everything you’re using in one place are worth quite a bit.

G2 Track is an example of a solution that thousands of companies use to manage their SaaS and contracts. With a solution like G2 Track, these best practices aren’t hard to follow. 

1. Standardize your procurement process

How does your business go about obtaining a software license? Before implementing SLM, your team may be fairly organized, or licenses could be saved in all sorts of folders. No matter which end of the spectrum your team falls on (or if you’re somewhere in the middle), now is a great time to standardize those processes. Who’s in charge of obtaining those licenses? Where are certificates being saved? Take a step back and reorganize. 

2. Identify your tech stacks and usage

What software licenses does your company already own? When setting up your SLM, make sure that each and every software solution used by every team at your company is listed. Doing this can help you determine whether you’re at risk for a compliance audit or if you’re paying for too many seats. 

3. Keep an eye out for contract integration opportunities

Organizing your licenses and identifying their functions may provide your company with an opportunity to determine an integration solution, meaning that instead of having to use (and pay for) two software, one solution might be able to do the same job. 

4. Automated discovery

G2 Track and other SaaS spend management software are capable of taking note of all software usage in every employee’s desktop. While automation is nice, physical audits are just as important to ensure that data collected by the automation process is accurate.

Benefits of software license management

One of the most obvious benefits of SLM is simply saving money, big time. But besides a financial win, software license management comes with a few more benefits. 

1. SLM provides transparency

Practicing SLM gives companies a clear view of all of the licenses being used across teams as well as how each particular software has been set up for use. When it comes time for a software audit, the information needed to assess risk and remain compliant will already be available to you. 

2. SLM keeps your business compliant

Having visibility of all software that a business uses enables IT to ensure that the software being used is compliant with the license. If a device is using unlicensed software or is not following the guidelines that the End-User License Agreement provides, fines or legal issues are to be expected. 

3. SLM helps identify unnecessary spending

Buying software is step one, but after it’s bought, is your company paying attention to how much that software is being used? Information from your SLM can help you determine how many people are actually taking advantage of the availability of that software solution so that your business can only pay for the necessary licenses. 

Get your SaaS in gear

As companies grow, the software they use can become hard to keep track of. The more roles that are hired for, the more functions are needed for the software to carry out for that role. Finding the right stack isn’t easy, but once it’s found, it’s of the utmost importance to keep track. 

Need a reminder of what your current software licenses entail? Check out our resource on software licenses for a refresher.

Artboard 1 copy 18@2x
Manage Software Costs

Ensure your business isn’t wasting spend on unused tools and licenses.

Manage your software costs with G2 Track.