Companies are also spending millions on software that has been decommissioned, but is still on the books and can be reinstated. Suppose the company spent $4 million on 10,000 Microsoft Office desktop licenses and 6,000 on active computers, 3,000 on memory computers and 1,000 paid when old computers were removed. The purchase records show 10,000 licenses, and the buyer, without knowing that only 6,000 licenses are used, spends $400 for each package for software maintenance. The company is handing over US$1.6 million in the reorganization of software maintenance. 5. Make correct software licensing management an important part of your business. Finally, it is important to make licensing management a business priority. This means informing all necessary employees of the actions to be taken and simply submitting the process to others, even if it is not part of their department. The IT team should take the lead in preparing processes and procedures and clearly explain to the relevant teams. If everyone is kept informed and good practices are in place, licensing becomes a normal part of the business and your business never has to worry about compliance requirements. Here are some reasons why enterprise contracts can add value: with these basics, take a deeper look at the SAM strategy and consider 8 best practices for successful software licensing. Enterprise Licensing Agreements (ELA) are contractual agreements that balance supplier and customer incentives to provide selected software at reduced and fixed prices over a specified period of time.
Despite the reduction in profit margins, ELA suppliers protect steep discounts for purchases in high dollar packages. Software licensing agreements (ALS) are becoming increasingly complex with the emergence of new technologies. These good practices help ensure that agreements provide optimal profit to the company. Flexera: Because companies spend so much on software, it has become a strategic advantage. It is recommended that companies have active management of the acquisition, allocation, supply and use of software across the enterprise, as well as the maintenance of software compliance conditions in software licensing agreements. What do you see as the benefits of proactive software licensing management? Want a more in-depth overview of best practices in software licensing management? Watch the Webinar, 8 must-do`s for Software Asset Management. Steven Russman: Maintaining accurate software and hardware inventory is an important element for any asset management software or it asset management. Whether the inventory is stored electronically or manually or both methods are used, you need this information to compare your software installations with the permissions described in your contracts.