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License Key Management Software – A Guide

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What is Software License Management?

So you’re probably wondering, “What is software license management?”

Software License Management involves the process of reducing, controlling, and documenting your total IT costs. License key management software helps control your IT costs, giving your team the organization needed to run effectively.

Types of Software Licenses

Here are the most common software licenses that are available:

  • General Public License: Covers software that comes at no charge and can be copied, modified, and used for free.
  • Database: While usually aligned to a device, database licensing demands special consideration due to the complex licensing complex and high cost that change by the vendor and might include the number of cores or servers, running against the installed databases. With databases, you have to get the correct license before using it for research or other projects.
  • Per Network: Cover all machines placed on one specific network.
  • Per-user: Restricted to one user that can use it on multiple devices (laptop or desktop) and requires the user to log in to verify their identity.
  • Per device or CPU: only required for one machine whether its a data center or user device.
  • Per Subscription: Managed via subscription by a device or user. They usually have an electric date.

Benefits of Good License Key Management Software

One key advantage is that your company will have all of its software licenses under control. On average, the average cost for unused software is about $259 per software. This sucks up your IT budget and wastes your precious resources. By monitoring and tracking your purchases, you are ensuring that every license accounted for is operating correctly.

The biggest benefit is that it’s a critical part in ensuring your software licenses are compliant with the EULA (End User License Agreement). If one device is using unlicensed software, you could face legal repercussions or some hefty fines.

Risks of Bad Software License Management

The Business Software Alliance is a company whose mission is to enforce compliance between businesses and advocate legal software. To fulfill this goal, the BSA uses court-ordered audits on organizations to ensure they are compliant. It does matter if they’re a small mom and pop shop to large government organization – the BSA will run an audit to ensure you’re operating legitimately.

When purchasing software, it’s important to remember that you down own the software. You have the right to use it under the EULA’s terms. If the BSA or any other auditor finds out that you’re not following the terms of the agreement, you’re exposing yourself to thousands or millions of dollars in legal penalties. The average fine for noncompliant licenses is $100,000 per license.

It’s recommended that you have regular internal audits to cover your bases before the BSA comes in. By managing the software licenses and uses, you’re eliminating the risk of unexpected penalties, negative audit results, and other signs of damage.

Conclusion

License key management software is necessary for startups and growing businesses. By getting a better grasp over your network’s license compliance, you have to ability to protect your company from unwanted lawsuits and fees. So get the right tool so you can upgrade your company’s overall license security.

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