Software License Management Key Terms

Understand software license management terminology

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.

 

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

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