Blog
18/03/2024
Gathering Data for Software Licensing Contracts
Gathering Data for Software Licensing Contracts
by Erin McLean, Synyega
In the dynamic realm of modern business operations, understanding what software is present in your IT estate, what is truly being utilised within your organisation, and what has been purchased to support those software assets are challenging tasks. The complexities of software discovery involve navigating through numerous layers of deployment data, contracts, and usage patterns.
There are 4 main difficulties businesses routinely encounter when attempting to unearth the software landscape within their estate, namely:
- Gathering Data for Software Licensing Contracts
- Identifying What Software Programs Are Actually in the Estate
- Determining Where Software Programs Are in Use or Underutilised
- Aligning SAM Tools with Manual Declarations for Accurate Reporting
In the first of 4 articles, this week we delve into the first of the difficulties – Gathering Data for Software Licensing Contracts.
Gathering Data for Software Licensing Contracts
The first hurdle in understanding your software inventory is gathering data related to licensing contracts. This involves sifting through a potential mountain of documents, quotations, invoices, and agreements to compile a comprehensive list of your business's software assets. This is no mean feat; it can encounter challenges from all corners of the company. By addressing the most common challenges listed here, businesses can successfully ensure compliance, optimise costs, and navigate the complexities of the modern software landscape.
Evolving Software Ecosystems
One of the fastest-developing challenges in gathering commercial data for software assets lies in the rapid evolution of the software landscape. The fast-paced developments of technology introduce new applications, updates, and licensing models regularly. However, commercial teams must remain current with contractual developments and act as licensing experts. Keeping pace with these changes and ensuring that data is up-to-date requires a proactive and vigilant approach.
Diverse Licensing Models
Software vendors often employ a complex mix of licensing models across various licensing metrics, from subscription-based to perpetual licenses. Navigating through these diverse models and understanding the intricacies of each is a challenge. Failure to grasp the nuances of licensing agreements can lead to compliance issues, unnecessary expenditures, and potential legal ramifications.
Lack of Centralised Data Sources
In many organisations, commercial data for software assets is scattered across various departments and systems. Procurement, IT, and finance teams may maintain separate records, making establishing a centralised and accurate commercial data repository difficult. This lack of cohesion can result in incomplete or inconsistent information. It may lead to efficiencies achieved through volume purchasing being missed due to duplicated licensing contracts across various business areas.
Shadow IT and Unauthorised Installations
The rise of shadow IT, where employees independently install software without IT approval, poses a significant challenge to gathering comprehensive commercial data. These unauthorised installations can go unnoticed, leading to security vulnerabilities, compliance risks, and increased costs.
Vendor Audits and Compliance Challenges
Software vendors often conduct software licensing audits to ensure compliance with licensing agreements. The prospect of facing an audit adds additional pressure on organisations to maintain accurate and up-to-date commercial data. Failure to comply with licensing terms can result in financial penalties and damage the organisation's reputation.
Complex Vendor Relationships
Dealing with multiple software vendors, each with its own set of terms and conditions further complicates the process of gathering commercial data. Building and maintaining positive vendor relationships are crucial, but understanding and managing the intricacies of each relationship can be time-consuming and challenging.
Integration with Procurement and Financial Systems
Integrating commercial data for software assets with procurement and financial systems is essential for accurate reporting. However, achieving seamless integration can be challenging due to differences in data formats, systems, and processes. Organisations may struggle to gain a holistic view of their software asset landscape without proper integration.
Identifying Software Licensing Contracts, Especially When Purchased Many Years Ago
One of the significant challenges is tracing back software licensing contracts, mainly when the acquisition happened several years ago. The fast-paced world of technology, software versions, and licensing terms can evolve rapidly, making aligning past purchases with current usage challenging. It is common for systems to rely on a decades-old contract formulated before many modern software uses were considered possible. This leads to gaps in terms and conditions, as well as difficulty in establishing a licensing baseline.
And so, the challenges of gathering commercial data for software assets underscore the importance of adopting a strategic and holistic approach. Organisations must invest in robust processes, leverage technology solutions, and foster team collaboration to overcome these hurdles. By addressing these challenges head-on, businesses can ensure compliance, optimise costs, and successfully navigate the modern software landscape's complexities.
Unbiased, independent experts you can trust
Synyega are the UK’s leading independent privately owned ITAM and FinOps consulting organisation. We have a desire to make a real change in how the industry works and that receiving independent advice on software licensing should be “standard practice” not the “exception”. We believe that every organisation should have access to independent advice that is not governed or influenced by a Reseller or a Software Vendor. Synyega will never partner with resellers or vendors so you can be sure our advice is always in your best interests. For more information visit www.synyega.com