Ensuring Compliance with Licensing Agreements
One of the main reasons why software licensing and procurement is essential is to ensure compliance with licensing agreements. Software vendors have specific licensing agreements that businesses must adhere to, and failure to do so can result in legal consequences. By properly managing software licenses, businesses can ensure that they are compliant with licensing agreements and avoid any potential legal issues.
A survey by Flexera found that 84% of organizations have faced a software audit in the last 18-24 months, with 57% of those audits resulting in a penalty or true-up fee.
Types of Software Licenses
There are several different types of software licenses, each with their own benefits and limitations. Understanding the different types of software licenses is essential when it comes to software licensing and procurement. Some common types of software licenses include perpetual licenses, subscription licenses, and open-source licenses. It’s important to understand the terms and conditions of each type of license and how they may impact your business’s technology infrastructure.
According to a report by Gartner, subscription-based software licenses will make up 75% of the total software market by 2022.
Best Practices for Software Procurement
Implementing best practices for software procurement can help businesses manage their software licenses effectively and efficiently. Some best practices include centralizing software procurement, conducting regular software audits, and negotiating pricing with software vendors. By implementing these best practices, businesses can save time and money, ensure compliance with licensing agreements, and maintain a streamlined technology infrastructure.
According to a survey by Techaisle, 84% of small and medium-sized businesses stated that they conduct regular software audits to manage their software licenses.
Software licensing and procurement are crucial aspects of any business’s technology infrastructure. By ensuring compliance with licensing agreements, understanding the different types of software licenses, and implementing best practices for software procurement, businesses can manage their software licenses effectively and efficiently. Properly managing software licenses can help businesses save time and money, avoid legal issues, and maintain a streamlined technology infrastructure.