How do I audit my software licenses for unused seats

Valentina’s company almost lost its renewal for a critical design suite – a $27,000 mistake – because they hadn’t realized five of their 10 licenses were consistently unused for six months. It’s a surprisingly common problem. Many businesses overpay for software simply because they’re not actively tracking usage and reclaiming those dormant licenses. Let’s walk through a comprehensive audit process, not just as an IT task, but as a direct impact to your bottom line.

Why Audit Your Software Licenses?

Before diving into the “how,” let’s solidify the “why.” It’s not just about saving money, although that’s a significant benefit. A regular software license audit:

Reduces Costs: Reclaiming unused licenses is the most immediate win.
Improves Budget Accuracy: Knowing exactly what you use allows for more precise forecasting and budgeting.
Ensures Compliance: Many software licenses are tied to actual usage, not just purchase. Violating these terms can lead to hefty fines and legal issues (NRS 598.0915 – Deceptive Trade Practices – applies if you’re claiming usage you don’t have).
Optimizes Resource Allocation: Understanding how software is used helps identify opportunities for consolidation or switching to more cost-effective solutions.
Strengthens Security Posture: Unused accounts are potential security vulnerabilities. Removing them minimizes your attack surface.

What Tools Do I Need for a Software License Audit?

The complexity of your audit will depend on the size of your organization and the variety of software you use. Here’s a breakdown of tools, ranging from free to enterprise-grade:

Software Inventory Tools: These are the foundation. They scan your network to identify installed software. Popular options include:
PDQ Inventory (Free/Paid): Excellent for basic inventory and reporting.
Lansweeper (Paid): More comprehensive, offering detailed asset tracking and license management.
ManageEngine AssetExplorer (Paid): A robust solution for larger organizations with complex IT environments.
Software Usage Monitoring (SUM) Tools: These go beyond simply identifying what is installed and track how often software is actually used.
SolarWinds SAM (Paid): A powerful SUM tool with advanced features for license optimization.
Flexera One (Paid): A comprehensive solution for software asset management, covering everything from discovery to optimization.
OpenLM (Paid): Specializes in license monitoring for engineering and scientific applications.
Native Reporting within Applications: Many applications (like Microsoft Office 365, Adobe Creative Cloud) have built-in usage reporting features. Don’t overlook these! They can provide valuable data without requiring additional software.
Spreadsheets (Excel, Google Sheets): For smaller organizations, a well-maintained spreadsheet can be surprisingly effective, especially when combined with data exported from other tools.

How Do I Perform a Software License Audit? A Step-by-Step Guide

• Step 1: Compile Your License Inventory: Gather all your software license agreements, purchase records, and subscription details. Include information like the software title, vendor, license type (per-user, concurrent, etc.), number of licenses purchased, and renewal dates.
• Step 2: Discover Installed Software: Use your chosen software inventory tool to scan your network and identify all installed software.
• Step 3: Monitor Software Usage: Implement a SUM tool or leverage native reporting to track actual software usage over a defined period (at least 30-90 days is recommended).
• Step 4: Analyze the Data: Compare your license inventory with the software usage data. Identify licenses that are significantly underutilized or not used at all.
• Step 5: Reclaim Unused Licenses: Work with your IT team to uninstall unused software and reclaim the licenses. This might involve revoking user access or adjusting subscription levels.
• Step 6: Document Your Findings and Update Policies: Create a report summarizing your audit findings, including cost savings achieved. Update your software procurement and usage policies to prevent future overspending.

Beyond Cost Savings: The Cybersecurity Advantage

For 16+ years, I’ve seen businesses focus solely on the cost-reduction aspect of license management. That’s shortsighted. Removing unused software isn’t just about money; it’s about reducing your attack surface. Dormant software, even if seemingly harmless, can contain vulnerabilities that attackers can exploit. By proactively identifying and removing unused applications, you’re significantly strengthening your security posture – a far more valuable return than just a few dollars saved. Furthermore, ensuring you only have necessary software running aligns with “reasonable security measures” as required by NRS 603A.215, protecting personal information.

What About Virtual Desktop Infrastructure (VDI)?

VDI adds complexity. You need to track license usage within the virtual desktops, not just on the physical machines. SUM tools that support VDI environments are essential, as are clear policies regarding license assignment and usage within the virtual infrastructure.

Automating the Process

A one-time audit is good, but ongoing license management is better. Consider automating the process with a SAM solution that can continuously monitor software usage, identify unused licenses, and generate alerts. This will save you time and ensure that you’re always getting the most value from your software investments.

To expand your knowledge on these critical IT subjects, check out these resources:

Key Topic	Common Question
Continuity	How can a business continuity plan protect my company during a disaster?
Strategy	What is a technology roadmap and why does my business need one?

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About Scott Morris and Reno Cyber IT Solutions LLC.

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Reno Cyber IT Solutions LLC.
500 Ryland St 200
Reno, NV 89502
(775) 737-4400

Hours: Open 24 Hours

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