In many companies, the issue of software licensing poses a real challenge. Often, there is a lack of transparency when it comes to knowing exactly who has been granted which usage rights for which software. And then there is the question of all questions: Are there enough licenses available?
In rapidly growing companies, there is often uncertainty about the licensing of the software used. This makes IT license management particularly complicated. As a result, many companies also "fear" license audits.
In addition to the growing complexity of their own IT landscapes, many companies are often unaware of the full terms and conditions of their contracts. This creates uncertainty about what is and is not permitted under software licensing agreements. In most cases, however, companies are not underlicensed, but rather overlicensed. For fear of underlicensing, those responsible often purchase more licenses than are actually needed. However, this overcaution can result in significant costs that jeopardize the long-term economic stability of the company. A structured approach to software licensing can help remedy this situation.
Reduce costs with software licensing and ensure compliance
A common problem in the area of software licensing is paying for software that is no longer used. Similar to a gym membership that you no longer use after your initial motivation wears off, or a newspaper subscription that you never read, software often continues to incur maintenance fees and update costs even though the applications are no longer in use. Another problem is the growing complexity of individual license agreements. This is especially true when different software from one or more software manufacturers can be used in the company, which makes the corresponding contract structures complicated and confusing.
To avoid such problems, regular license checks are essential —not only from an economic perspective, but also from a legal one. Structured and transparent IT license management helps companies reduce unnecessary IT costs while ensuring the security of their IT systems.
Follow-up question: Software licensing in practice
Bernhard Kienzle explains the steps necessary to ensure effective license management for both sides. He works as a managing consultant in Service Application Management ECM at ISR.
Bernhard, how does ISR handle the issue of license checks for customers?
Bernhard: First of all, it is important to understand that licensing issues and license checks are very individual for each company and our customers. After purchasing and installing the relevant software, the focus is on using it in accordance with the agreed license terms. Various license metrics play a decisive role here. Various pieces of information may be relevant for a license check, such as the installed software components, metrics such as the number of authorized users or type of users, the number of servers on which software is installed, or even the number of processors required to run software. All of this is contractually specified in the respective license terms and must be checked accordingly. Regular license checks can help minimize legal risks and avoid unnecessary costs. As an IT service provider, it is very important to us to find the optimal solution for our customers. This allows us to create a trusting and transparent basis for cooperation.
What tools does ISR use for such license checks, for example?
Bernhard: First of all, I would like to move away from the term "toolset." Depending on the manufacturer, there may be fixed specifications regarding what, how, and how often measurements must be taken. Last but not least, this is also influenced by a wide variety of licensing models.
We always review and analyze the license agreements available to the customer and, based on this, decide which measurement methods are suitable and can be used for the respective license types. Another determining factor is the platform on which the software is operated. Cloud-based or on-premises, virtualized environment or separate hardware, etc.
When managing server-based IBM licenses, for example, we use the IBM License Metric Tool (ILMT) , which was developed specifically to help companies comply with IBM software licensing requirements. It enables software inventory, license tracking, and compliance reporting, among other things. The use of ILMT is mandatory in virtual environments.
For our own ISR software products, such as ISR Information Office or ISR Accounts Payable Flow, our software solution for digital invoice processing, the process is slightly different. For this, we have our own license tool integrated into our software. This tool makes it easy to export all important license information and exchange it between us and the responsible administrators. If there is over- or under-licensing, the new license key can be re-imported directly via this license tool with little effort.
And how does such a license check work at, or rather with, ISR?
Bernhard: A license check at ISR follows a structured process and can apply to both our own software products and licenses from other software manufacturers, such as IBM, if we act as a support provider. We usually carry out these license checks on an annual basis. The process begins when one of our sales representatives announces the license check to our customer and arranges an appointment with the main responsible persons and other relevant individuals. The check itself is usually carried out remotely and moderated by our sales experts.
A technical contact person from ISR guides the customer through their systems or databases to determine the information required for the license audit. During the appointment, the number of licenses permitted under the contract is compared with the number of licenses actually used. The results are then documented in an ISR license check report, which contains both a management summary and detailed information on how the measurement was carried out. Finally, I would like to emphasize one more thing:
At ISR, we don't want to burden our customers with the issue of software licensing; rather, we want to support them as a trusted partner. We want to help ensure that you not only have the right licenses, but also that you can work optimally and efficiently. Our focus is on making it easier for you to keep track of your licenses and helping you navigate the often complex contract structures. Together, we will find the best solution so that you can concentrate on your core business.
Thank you very much, Bernhard, for your brief insight. So what can we take away from this?
Sustainable IT license management as the key to success
Successful IT license management is essential for staying on the safe side, both economically and legally, in today's digital world. Software licensing is much more than just an administrative task—it is a strategic lever for avoiding unnecessary costs while making efficient use of IT infrastructure. Companies that regularly review and optimize their software licensing not only create clarity and security, but also lay the foundation for sustainable economic success.
It is worth taking the necessary steps now to review and adjust your own licensing processes. This will not only save you money, but also minimize the risk of compliance violations.
Would you like to learn more about how we work, our consulting services, or software products? Are you interested in topics such as the digital workplace or digital invoice processing? Then feel free to find out more here or contact us directly. We look forward to hearing from you!
Bernhard Kienzle
Managing Consultant
Application Management ECM
bernhard.kienzle@isr.de
+49(0)151 527 45 148
