What is Software License Optimization?

Worried that your company is spending too much on software subscriptions? IT costs can quickly become a burden. Especially if your expenses include unused or unnecessary software licenses. Or perhaps it’s the other way around and you don’t have enough. Your team isn’t working at full efficiency due to gaps in your application inventory. Either way, Software License Optimization is your solution. Keep reading to learn how to manage your software license inventory and why this affects your business.

What is Software License Optimization?

Software License Optimization is an important supplement of IT asset management, which monitors IT assets like hardware and software systems. It optimizes software licenses for maximum value and downsizes licensing spending. It ensures that you utilize the use of software licenses that correspond to your business goals. It aims at preventing unplanned costs and regulating software assets throughout their lifecycles.

Although the term has been newly introduced, businesses have already started to use Software License Optimization. SLO not only analyzes past and current software license usages but also gives insight for future purchases. It helps with budgeting and determines the impact of changes in software inventory.

A Gartner study found that the following practices can reduce software costs by 30%:

• application configuration optimization
• recycling software licenses
• using software asset management tools (like Loggle!)

3 Main Benefits of Software License Optimization

Optimizes Software Spend

Businesses sometimes buy overpriced licenses by certain vendors. In other cases, they may be under licensed and unaware of it (which often leads to shadow applications as well). SLO is essential for managing software licenses to avoid unnecessary costs or ramifications from use of unlicensed software.

Strengthens IT Security

As businesses become more reliant on software applications to perform tasks, the potential for security breaches increases. Because the more software licenses you have, the more you’re exposed to cyberattacks. Especially if you don’t know what you have.

SLO helps IT departments establish a software inventory. This way, potential vulnerabilities can be examined, and adequate security measures can be taken. Having a clear overview of software infrastructure helps combat IT risks.

Improves License Management

License renewals are a never-ending task. Applications are bought at different times and have a varying subscription or licensing durations. So, keeping up with license renewal dates is a tricky feat; figuring out differing renewal conditions becomes a tedious task due to complex negotiation cycles. With SLO, businesses can improve their renewal processes and maintain an effective license management system.

Conclusion

Software License Optimization and application inventories go hand in hand. The two strategies help to downsize software spending, minimize IT risk and simplify license renewals activities.

Our Application Portfolio Management tool Loggle has all the features you need for both. With handy modules like applications inventory keeping, license management and integration mapping, your IT landscape will be at its best shape yet. Explore Loggle’s features or reach out to us for a free, personalized demo of what it can do for your business.