Software license renewal is something every organization deals with, whether it’s once a year or more often. It’s easy to treat it like a routine task, but it can be a great chance to save money and make smarter decisions.
Vendors often bring their own pricing bundles, special deals, and usage reports that support their side of the deal. That’s why it’s important for you to go into each license renewal prepared, with the right data, clear goals, and a smart strategy.
This article shares Five Key Strategies to help you get more out of every license renewal:
You’ll also see how Aibel, a global energy company, used these ideas to improve their license planning and reach over 99% usage efficiency using Open iT.
No matter the size of your company, smart software renewal decisions today can lead to big savings tomorrow.
DEMO: Prepare, Don’t React!
Strategy #1: Review Historical Usage Trends Before You Renew
Before every software renewal, take time to study historical trends in usage. Instead of relying on current headcount or last year’s contract, dig into real data.
You can use Open iT reports to explore:
- Which applications and features are used the most (and least)
- Usage patterns by user, department, and location
- Daily, weekly, and seasonal usage peaks
- Which licenses are consistently idle or underutilized
Looking at the past is how you prepare for the future. And in software licensing, that future comes fast. The better your usage data, the better your license renewal decisions.
For more forecasting capabilities, you can explore:
- LicensePredictor – for forecasting usage trends based on historical patterns
- LicensePlanner – for aligning license supply with workforce and project changes
Want to see usage patterns in action? Watch the demo: Open iT Reports: License Usage Heatmap – a way to visualize when and how your licenses are used over time.
Strategy #2: Use Efficiency and Denial Reports to Guide Renewals
When it’s time for software license renewal, two questions should guide your decisions:
- Are we using our licenses efficiently?
- Are our users getting blocked from accessing the tools they need?
Open iT’s LicenseAnalyzer™ Level 1 helps answer both. It provides clear visibility into usage peaks, license saturation, and user denials, so you can make smarter, more balanced decisions.
You can use it to:
- Identify how many licenses are needed to meet 95% or 99% of demand
- Track when and where license denials happen, and how often
- Spot underused versus overused licenses
This data helps you cut unnecessary costs while avoiding workflow disruptions. It also strengthens your position when negotiating software license renewals with vendors.
For guided demos, check out:
Open iT Reports: License Efficiency Chart—measure usage against thresholds to right-size license counts
Open iT Reports: License Denials—understand how to detect and resolve license access issues before they impact productivity
The best license renewal decisions come from seeing both sides: what’s working, and where users are getting stuck.
Idle licenses? They’re a renewal risk. Check out our webinar “Idle No More: Reclaiming and Reallocating Underused Licenses” to learn how to reclaim and reallocate unused assets before your next renewal cycle. Here’s your invitation to watch the recording.
Open iT | Webinar On-Demand
Idle No More: Reclaiming and Reallocating Underused Licenses
Strategy #3: Set Alerts for License Expiration and Long Check-Outs
Missing a license expiration date or allowing users to hold onto licenses for too long can lead to denials, waste, and rushed license renewal decisions. These issues are easy to overlook until they start causing disruption.
Set automated alerts to stay ahead of problems and track behavior that impacts renewal planning.
Use alerts to:
- Track and receive alerts for upcoming license expiration dates
- Detect long-running or idle license check-outs
- Notify users when usage exceeds defined thresholds
- Identify patterns that lead to denials or unnecessary license hoarding
These insights support a cleaner, more accurate license renewal process—one that’s based on usage, not guesswork.
Customer Spotlight: Aibel’s License Renewal Turnaround
Aibel, a global energy services company, discovered its licenses were being consumed, even during downtime. Using LicenseAnalyzer™ Level 3 and Analysis Server, they implemented alerts, license harvesting, and dashboard-based reporting to uncover and correct idle usage.
By building visibility and driving user accountability, they improved daily license behavior and achieved over 99% license usage efficiency.
Aibel’s story is a clear example of how data-driven decisions can lead to smarter, more sustainable software license renewals.
Want to read Aibel’s full story? Check out: ‘Leverage Usage Data for License Optimization and Better Vendor Negotiation’
Strategy #4: Use Chargeback to Align Costs with Usage
When one team uses software but another pays for it, it’s hard to make fair or informed software license renewal decisions. A chargeback model helps by assigning costs to the groups actually using the licenses.
This approach helps you:
- Distribute license costs to the right teams
- Encourage responsible usage habits
- Make budgets and software needs more transparent
- Back up renewal planning with usage-based data
By connecting license cost to actual demand, chargeback supports smarter software renewal conversations—and helps reduce waste before the next license renewal cycle.
Want to learn more about implementing chargeback for software usage? Visit our page on IT Chargebacks
Strategy #5: Match License Types to Real User Needs
Not all users need the same kind of access, and not all licenses should cost the same. Matching the right license type to each user’s actual behavior is one of the most effective ways to reduce costs and improve license renewal outcomes.
Reviewing usage patterns helps you:
- Assign full-access licenses to heavy users
- Move casual or infrequent users to shared or concurrent pools
- Evaluate pay-per-use or token models for flexible demand
- Adjust your mix of license types ahead of license renewal negotiations
When you align license types with how people actually work, you avoid paying for access no one needs—and ensure the right users always have what they do.
This is also where software renewal planning becomes more strategic. Instead of just renewing what you already have, you can restructure your license model to better fit your workforce and workload.
Final Thought: Prepare, Don’t React
Software license renewals don’t reward reactivity—they reward readiness. By reviewing historical usage trends, using efficiency and denial reports, setting alerts for license expiration and check-out behavior, aligning costs with actual usage, and matching license types to real user needs, you set the stage for smarter license renewals.
Each of the five strategies in this guide can be implemented gradually, but together, they build a process that’s not only cost-effective but scalable and future-ready. Whether you’re managing five tools or fifty, the right data makes all the difference.
Open iT can be your partner in turning software renewals into strategic wins. Schedule a demo or have a representative call you to see how.
Schedule a Demo and Build a Future-Ready License Renewal Strategy.
