Key Takeaways
- License optimization translates insights from license management and usage data into decisions.
- Levers include quantity, tier, license model, and reassigning available licenses.
- Contract terms and notice periods determine when adjustments take effect.
- Optimization can also mean purchasing additional licenses when under-licensing threatens.
What levers exist in license optimization?
License optimization works with five levers that can be combined.
- Reassign available licenses instead of buying new ones
- Revoke inactive assignments after checking back
- Reduce license quantity at renewal
- Switch tiers when features are not needed
- Consolidate multiple tools with the same function
When is the right time for license optimization?
The right time is before the notice period of the next renewal. Reassignments are possible at any time, but quantities and tiers can often only be changed at the end of the contract term. Those who only review after automatic renewal usually pay for another full term of the old quantity.
How do small and medium-sized businesses optimize licenses without an IT department?
Without an IT department, a fixed, simple process helps: before every renewal, compare paid, assigned, and used licenses, clarify inactive accounts with the responsible person, and document the decision. Tools that bring together invoices, contracts, and usage per app shorten this review.
Example: License Optimization in practice
Example: A retail company with 65 employees reviews its office suite before renewal. 70 licenses are paid for, 62 assigned, and 55 active. 7 assignments belonging to departed employees are revoked, 12 people who do not need desktop apps switch to a cheaper tier, and the total quantity drops to 58.
License Optimization vs. Unused Licenses
| Aspect | License Optimization | Unused Licenses |
|---|---|---|
| Nature | Action | Finding |
| Result | Adjusted quantities, tiers, or assignments | List of candidates for review |
| Timing | Usually at renewal | Continuously identifiable |
Identifying unused licenses is the finding; license optimization is the decision and implementation that follows from it.
How does Sovaro help with License Optimization?
Sovaro provides the foundation for license optimization: paid, assigned, and used licenses per app side by side, flagging of licenses without usage for 30 days, costs per app from invoices, as well as contracts, renewals, and notice periods per subscription. Whether quantities are reduced or tiers switched is decided by the team.