How reclaiming software licenses boosts your bottom line

Software licenses: they’re essential, but often, they’re bleeding your budget dry. Unused or underutilized licenses are a silent drain, a hidden cost that many businesses simply accept. In today’s economy, that’s a luxury you can’t afford. Imagine finding a pile of cash hidden in your office – that’s essentially what reclaiming these licenses is. 

But how do you find those hidden assets when usage data is a murky puzzle? We’ll cut through the confusion and show you how to turn software waste into significant savings.

Common causes of license waste

Before diving into solutions, let’s take a look at common culprits of the root cause behind software license waste. Several factors may contribute to this issue, but let’s explore the key reasons why organizations struggle with unused or underutilized licenses.

Lack of visibility into usage

Without a clear understanding of how software is being used, it’s impossible to identify unused licenses. This lack of insight often stems from fragmented data and the absence of robust monitoring tools.

Manual license management processes

Spreadsheets and manual tracking are prone to errors and inefficiencies. As your organization grows, manual processes become increasingly cumbersome and ineffective, leading to license sprawl.

Decentralized purchasing

When departments or individuals purchase software independently, there’s a lack of centralized control. This results in duplicate licenses, inconsistent purchasing practices, and difficulty tracking overall software assets.

”Shelfware”

Shelfware refers to software licenses that were purchased but never deployed or are no longer needed. Employee turnover, project changes, and evolving business needs contribute to the accumulation of shelfware.

Why reclaim software licenses

Reclaiming unused software licenses may help you hit your annual goal of cutting software spend by a certain percentage as well as a multitude of other benefits that directly impact your organization’s financial health and operational efficiency.

Cost savings

By reclaiming and reallocating unused licenses, you can significantly reduce software spending. This includes lowering subscription fees, maintenance costs, and support expenses.

Improved IT efficiency

Optimizing resource allocation ensures that your IT budget is used effectively. Reclaiming licenses frees up resources that can be invested in strategic initiatives and innovation.

Enhanced compliance

Maintaining an accurate inventory of software licenses reduces the risk of audit penalties. Reclaiming licenses helps you stay compliant with software vendor agreements and industry regulations.

Increased security

Unused software installations can create security vulnerabilities. Reclaiming licenses reduces the attack surface and minimizes the risk of unauthorized access or malware infections.

Strategies for reclaiming software licenses

To effectively reclaim software licenses, IT teams should consider implementing the following strategies:

Usage monitoring and analytics

With a software asset management (SAM) or SaaS spend management tool, IT teams have real-time insights into software usage. These tools can identify underutilized licenses and generate reports on user activity.

No longer does IT need to ask users individually nor dig into each application separately. And paired with sentiment surveys, all relevant data is in one place.

Automated license reclamation

Automate the process of reclaiming licenses based on predefined criteria, such as inactivity or employee departures. This reduces manual effort and ensures timely license reallocation.

Regular audits and reviews

Conduct regular audits to identify discrepancies between installed software and purchased licenses. Review software usage patterns and identify opportunities for license optimization.

License reclamation with BetterCloud

With many organizations relying on SaaS applications, BetterCloud offers a powerful all-in-one platform to automate user lifecycle management, fortify file sharing, and streamline software license management. Key software spend features include:

• Total visibility into your tech stack: Accurately detect every SaaS app in real time via exclusive use of the world’s largest SaaS taxonomy (G2). All commercial SaaS apps are completely detailed and categorized in a unified dashboard, avoiding any guess work or heavy research.
• Automated license optimization: Identify underutilized licenses based on actual usage data, allowing you to downgrade or reallocate licenses as needed.
• Detailed reporting and auditing: Generate reports on license usage, compliance status, and cost savings, providing insights for informed decision-making and audit preparation.

With BetterCloud, organizations are seeing real savings, paying for BetterCloud instantly. To see how you can save, schedule a demo with us today.