Software License Management

Guide to Software License Management

Keep your business secure and legit with license management software
By Marianne Cotter

	Software Licensing Basics Effective software license management helps create a secure, compliant and efficient workplace. Software license management is most effective when it is part of a company-wide asset management program. Software licensing management should also include software that is used off-site or at multiple locations.

With companies depending on software programs for everything from basic daily operations to complex business modeling, software license management is more important than ever. Without a software license management program, you might unintentionally run afoul of software licensing compliance requirements and be hit with civil or even criminal penalties. On the flip side, neglect software asset management and you might pay too much for software licenses by purchasing more licenses than you need. Tracking software licensing is critical to assuring systems security, passing compliance audits and keeping your software library current.

To set up your software license management program, consider the following:

1. Software license management as part of an asset management program.
2. Negotiating software licensing terms.
3. Software licenses for over-the-counter software programs.
4. Software licensing in a Microsoft environment.

Action Steps

The best contacts and resources to help you get it done

Software license management as part of an asset management program All businesses accumulate assets such as computer hardware and software. Each asset has a lifecycle that runs from purchase, licensing and deployment through maintenance and upgrades and, finally, retirement. Software has special asset management needs in terms of security and license management.

I recommend:  HP's OpenView Asset Management software is a complete IT lifecycle management program that aligns software asset management with larger business goals. ManageEngine AssetExplorer scans your networks, automatically discovering all software available in each workstation, allowing you to monitor your software licensing to see if you are compliant, underlicensed and overlicensed. Absolute Software's Software Inventory Management program also helps you avoid purchasing unnecessary licenses by tracking your company's real needs.

Negotiating software licensing terms Software asset management goes beyond tracking licensing compliance. Companies that buy a significant number of software licenses can often negotiate software licensing terms with vendors, saving money and simplifying license management.

I recommend:  Do Better Deals helps professionals get better deals when negotiating with suppliers. Use this checklist of software licensing contract points from law firm Morse, Barnes-Brown & Pendleton.

Licensing over-the-counter software If your company purchases over-the-counter software or downloads shareware, you may not require a full-scale asset management program, but you still need to acquire and manage software licenses.

I recommend:  My Technology Lawyer offers forms for over-the-counter software licenses, shinkwrap licenses, multi-party licenses, click-to-accept licenses and multi-facility licenses. It also handles licensing dispute resolutions through its alternative dispute resolution (ADR) service.

Software licensing in a Microsoft environment From operating systems and servers to e-mail and word processing, most companies run at least one Microsoft software program on their computers. If you use a server, that is the logical place to manage software licensing.

I recommend:  Microsoft offers a volume licensing tool to help you find the right volume software licensing program. If you use Windows Terminal Server, consider AppSense Terminal Server License Management software. Emco's Network Inventory program generates hardware and software inventory for Microsoft Network LAN, allowing you to scan your network computers, inventory the software on each one and create reports.

Tips & Tactics

Helpful advice for making the most of this Guide

• Inventory all software programs and software licenses when they are purchased and deployed.
• Improve your software asset management by setting up a permissions hierarchy that describes who is authorized to access which software programs and denies access to unauthorized users.
• Monitor software licenses and update as necessary.
• Software licensing needs change as employees come and go. Update permissions as employees quit or change job titles and as new employees are hired.
• Align software license management with larger business policies and goals.