Key Takeaways
- Unused means: paid for but unassigned, or assigned but without activity.
- Typical causes are departures, team changes, and completed projects without cleanup.
- Unused does not mean immediately cancelable; contract terms and minimum quantities still apply.
- Unassigned licenses can often be reassigned instead of buying new ones.
How do unused licenses arise?
Unused licenses usually arise when staff or tasks change, but the licenses do not.
- Departures without revoking the assignment
- Team changes after which a tool is no longer needed
- Completed projects with access left running
- Quantities bought generously for expected growth
- Multiple tools with the same function across different teams
How do you find unused licenses?
Unused licenses are found by reconciling three quantities per software: paid according to the contract, assigned according to the admin console, and used according to activity data. Unassigned licenses result from the difference between paid and assigned; inactive licenses result from assigned accounts without activity during the chosen period.
What should small and medium-sized businesses do with unused licenses?
Small and medium-sized businesses should first review unused licenses and then take targeted action. After checking with the responsible person, the license is reassigned, reserved for upcoming hires, or canceled for the next renewal. Contract terms and notice periods determine when a reduction actually saves money.
Example: Unused Licenses in practice
Example: A mechanical engineering company with 110 employees pays for 50 licenses of a visualization tool at 60 euros per month each. 8 licenses are unassigned, and 12 more show no activity for 30 days. After checking back, 15 licenses are canceled at renewal, saving 10,800 euros per year.
Unused Licenses vs. License Optimization
| Aspect | Unused Licenses | License Optimization |
|---|---|---|
| Nature | Finding | Action |
| Result | List of candidates for review | Adjusted quantities, tiers, or assignments |
| Timing | Continuously identifiable | Usually implemented at renewal |
| Cost impact | None yet | Savings or needs-based adjustment |
Unused licenses are a finding, whereas license optimization is the decision and implementation that follows from that finding.
How does Sovaro help with Unused Licenses?
Sovaro flags licenses without usage for 30 days. Contracts, renewals, and notice periods show you by when you can reduce the quantity.