A small business was suddenly hit with a $50,000 bill from Autodesk for non-compliance. Their mistake? They installed software on five PCs, when they are only allowed three. Now, picture this scenario unfolding in organizations with extensive license portfolios and thousands of PCs. It happens and the financial repercussions are staggering.
As software vendors intensify their audit activities, the lack of thorough audit readiness could lead organizations into a maelstrom of financial strain and operational disruption. This narrative serves as a stark reminder of the need for robust license management and software license compliance vigilance in today’s digital landscape.
Non-Compliance During Software Audits
The $50,000 penalty fee for violating licensing agreement is just one example of how non-compliance can lead to an expensive post-audit resolution.
Another real-world example is the use of old software with the current subscription. Software vendors are keen to keep their customers up-to-date with the latest versions. In this example, Autodesk penalized a company with a $31,000-fine for non-compliance for using an outdated version of a software that’s a decade old.
Insufficient education on software license compliance within the workforce can lead to a significant misunderstanding of how to properly utilize and manage software assets. This lack of knowledge can inadvertently cause misuse and unauthorized access to software licenses, potentially resulting in substantial fines.
These examples show how much pressure and trouble the post-audit phase causes and how important it is for companies to improve their audit readiness.
The Challenges of Software License Compliance
The root of many compliance issues lies in the complex nature of software licensing agreements. These contracts can differ greatly across products and vendors, presenting a significant challenge in understanding and managing the intricacies, particularly for large organizations with extensive software portfolios.
Furthermore, the fast pace of technological advancement complicates compliance efforts. Software is continuously updated, licenses expire, and new ones are acquired, making it difficult for organizations to maintain an up-to-date and accurate inventory of their software assets and their compliance statuses.
Step Up Your Audit Readiness with LicenseAnalyzer
Software vendors often alert organizations before starting an audit. For example, Autodesk gives a 15-day heads-up, then uses AIT ScanWin to collect and analyze computer usage data, followed by billing. IBM, on the other hand, notifies customers 30 days in advance.
To mitigate audit challenges and ensure software license compliance, organizations should implement proactive measures to improve audit readiness and comply with licensing agreements.
Open iT’s LicenseAnalyzer prepares you for vendor audits by offering detailed software usage data, optimizing license management, and enabling customized reporting for vendors.
Comprehensive License Management
LicenseAnalyzer gathers and analyzes software usage data from diverse sources, offering a thorough overview of your license usage across the organization. This visibility into the number of licenses, their users, usage patterns, and allocation by project or department helps identify discrepancies against contractual obligations, enabling proactive adjustments before audits.
This enables effective tracking and management of licenses across the IT landscape, helping to ensure compliance, identify risks, and optimize license distribution.
Custom License Usage Reporting
LicenseAnalyzer lets you create comprehensive and tailored reports on license usage, entitlements, and compliance status. These reports allow organizations to address compliance proactively and prove adherence to licensing agreements during audits.
Proactive Alerts
LicenseAnalyzer’s equips organizations with proactive monitoring and alerting capabilities, enabling them to preemptively tackle software compliance challenges. It offers automated notifications for critical situations, such as applications approaching maximum utilization, individual users or hosts holding licenses for prolonged periods, users holding more licenses than permitted, and issues with stopped license daemons or servers.
Optimized License Allocation and Consumption
LicenseAnalyzer optimizes your license management by allowing you to enforce usage policies and implement strategies like license harvesting to use software assets efficiently. Its simulation feature evaluates the impact of changes in usage or licensing, helping prevent waste and unnecessary purchases.
Never Fear Software Audits Again
Software vendor audits are inevitable, but they don’t have to be stressful or costly. With Open iT, you can prepare for and ace vendor audits, optimize your software assets, and ensure software license compliance.
If you want to learn more about how Open iT can help you prepare for and ace software vendor audits, contact us today for a free consultation or a demo.
