Home » Business / Information Technology » The importance of structured license management

The importance of structured license management

It is no secret that good Software Asset Management (SAM) can help in decreasing software costs. Keeping track of installed licenses in an orderly way is important for every kind of company. Software License management (SLM) is one part of the bigger SAM. Being in control of SLM is crucial to the success of your (IT) company. A decrease in software costs is only one benefit of strong SLM. Other benefits include being in compliance with software regulations and avoiding having to pay fines. Software vendors, especially the larger ones, are currently performing audits more often than they used to, increasing the chance to catch non-compliant organizations.    

When SAP is included in a multinational environment it becomes even more difficult. The process of SAP licensing is very intricate and complicated. Companies therefore really need to make an effort when it comes to being in control and having a correct overview when it comes to software licensing.    

Complicated models

SAP license models are not easy to grasp and this process can be very time-consuming. It can take a long time to fully comprehend what’s going on because chances are that you don’t even know where to start looking. Especially when it comes to package licensing the complexity rises. SAP systems cannot withdraw the need for proper licensing. This is why you better make sure to have this all in order and ideally have someone in the organization that has a lot of (SAP) license knowledge. However, if your organization is not that big, it is also possible to contract an external party to handle this for you. There are plenty of organizations that are specialized in license management and have made it their core business. So it is very advisable to hire an external party if this takes away your worries and decreases risk. This way, you can really work on maximizing your software investment.      

Tips when it comes to software licensing

Whether you choose to hire an external party to take on your licensing or you choose to develop the knowledge in-house, there are a few ground rules. Always make sure you understand which regulations you are obliged to adhere to, take any future company growth into consideration, and make sure to always be up-to-date and have a structured system and overview of what’s going on.