Implementing a software license management system is a great way to manage product licenses, but making the most of software license management systems could help you increase revenue and build a better rapport with customers.

A basic software license management system allows you to enforce, monitor and maintain software licenses. This helps you keep track of which customers have licensed what software and how they’re using their applications. Consider the following tips when making the most of software license management systems.

1. Make the most of software license management software to increase revenue.

2. Increase productivity of your software license manager by eliminating manual processes.

3. Consult with providers of software license tracking services to learn how to make the most of these services.

Action Steps
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Use software license management software data to initiate customer contact

A well-designed license software management system offers a range of features allowing users to regularly track and update data on a continuous basis. Key features of license management software include helping you set pricing options and maintain key contract details, such as order history, product usage and contract expirations. By having this information readily accessible, you can increase revenue by knowing when to contact customers about upgrades and contract renewals.

I recommend: Check out Open Channel Solutions to learn more about making the most of license management software. Learn how license management software can help you set affordable pricing for customers by reading Software Magazine.

Automate manual processes with a software license management system

Manual software license management practices are typically tedious processes that open the doors to increased errors in customer data. Using licensing helps software owners control the functionality of the software. By using an automated license management system, a license software manager can spend less time searching for data and more time running reports on contract renewals and cross-sell and upgrade opportunities.

I recommend: Visit Oracle to read more about the benefits of automating software license management processes. Read more about software license protection by checking out LLRX.

Learn software license management best practices from the experts

Software licenses are the heart of software companies. Consulting with providers of software license management tracking services is a great way to learn more about how you can make the most of software license management systems. They can give you direction on protecting your intellectual property rights and how a software license management tool can help you appropriately price and package your software products so that they appeals to a wider audience.

I recommend: Find out more about license management systems by reading information provided by StrongBit Technology. Visit SoftwareShield Technologies to find out more about software license management tracking services.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Software licensing can be a complex process for your software license manager, which is why it's so important to automate your software license management tasks. An effective way to make the most of software license management systems is to implement a system that can be used to increase the value of your enterprise relationship management and customer relationship management systems.

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.

Learning the software license management basics can help you reduce the total cost of technology ownership. Software license management is defined as a system used to enable the enforcement, tracking and specification of software licenses.

Employing a software license management system provides software publishers with the necessary tools to protect their companies from hacking and tampering. In addition, using a software license management tool can also help you keep track of which customers have licensed what software and how they’re using their applications. Consider the following tips to help you learn software license management basics.

1. Evaluate your need for software license tracking services.

2. Research the types of software license management models.

3. Assess the features offered by license management software.

Action Steps
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Determine why you may need a software license management system

License management tools help generate revenue through renewals and new entitlements. A software license includes the rights, restrictions and permissions imposed by the manufacturer of the software product. In addition to protecting the technology owner's intellectual property rights, software license management systems are also useful in helping owners set price and packaging needs in accordance with the market.

I recommend: Read more about the basic benefits of using license management database software by checking out SandHill.com. Check out TechTarget to learn more about license software management.

Review different types of software license management systems

Floating and node-locked are two common types of software license management systems. In a node-locking software license management system, application access is restricted to a certain number of hosts. For example, a node-locked license may support two simultaneous users accessing one application. In contrast, the floating license model provides a restricted number of licenses that can be used on any combination of hosts. Having a software license manager is a great way to track and maintain software usage restrictions and permissions.

I recommend: Read more about the various types of software license management systems by checking out Cluster Resources. Check out information on choosing software license management systems by visiting Basis International.

Read about the functionality of software license management systems

A well-designed license software management system is one that allows your software license manager to maintain and regularly update license information. License management software offers a range of basic features designed to help software publishers prevent errors often caused by manual software license management systems. These features include helping you set pricing options and maintain key contract details, such as order history, product usage and contract expirations.

I recommend: Check out Sassafras Software for more information about the functionality of license software management systems. Visit IBM to read more about the features of software license management systems.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  When choosing a software license management system, it's important that you ensure the software has the capability to automate all of your manual licensing processes, which should include customer, product, contract and order management.

Software license management is an important task for any organization. Non-compliance with software vendors' licensing requirements can mean hefty fines and even criminal penalties. In addition, losing track of licenses can mean that you are paying to renew licenses for software that is underused or not used at all. Software to track licenses simplifies the process and can reduce the time and effort needed to keep the records straight. You have to understand some of the key terms used in software license management to find a software license tracking software that meets your needs.

Action Steps
The best contacts and resources to help you get it done

Asset management

Asset management is used to track resources and inventory, including computers and equipment, software programs and other technology. Software license management is often a small part of an asset management program.

I recommend: Asset Management Software gives a detailed definition of asset management, along with links to solutions and more information.

Microsoft licensing

For most companies, Microsoft licensing is a separate animal than other software licenses. Most companies have a large inventory of Microsoft products. Volume licensing from Microsoft can really help to save money on licensing fees. Penalties for non-compliance can be significant, including large fees, loss of Microsoft certification and software that won't work any longer.

I recommend: Read all about volume and product licensing on the Microsoft licensing web page.

Volume licensing

Companies that buy more than the normal amount of licenses can often get a deal. In general, when multiple licenses are purchased in bulk, the cost of each individual license is incrementally reduced.

I recommend: TechSoup provides information on the benefits of volume licensing.

Shrinkwrap software license

A shrinkwrap software license applies to software that is purchased off the shelf, or downloaded with a click-to-accept agreement. It differs in enterprise or volume software in that the agreement normally applies to a single user and computer.

I recommend: Draughon Attorneys at Law's My TechnologyLawyer website provides more information about shrinkwrap software licenses.

Software metering

Maintaining licenses can be a waste of money if the software is rarely used or installed on the computers of users who don't need it. Software metering determines how often the software is used and can help you decide whether you need fewer licenses.

I recommend: Check out TechRepublic for more information on software metering.

CPU licensing

Traditionally, licenses were offered on a per-machine basis. As multiple processors become standard for servers and even personal computers, software license compliance becomes more complex as vendors define what constitutes a machine. Virtualization also adds to the complexity. Some companies will require a license for each core or processor.

I recommend: Software Magazine provides details about software license compliance and non-traditional machine types. Read a CNET article about policies from various vendors.