Software Compliance is an essential aspect for every business. It is often discussed when talking about software asset management en software licensing. Being compliant means several things. The first is that it means you should make a complete list of all the software installed on your network. The next is to examine whether you are actually legally allowed to use the software. To do so, gather all the purchase documentation of the software you have bought to confirm your licensed software and that you really comprehend what the terms are. Matching your purchases with the installations is key in whether you are software compliant of not. It is often the case in organizations that IT managers are not sure what they have or have not purchased in the licensing area and that they are in turn often over- or under licensed. This blind purchasing of software can cause compliance issues and should not be understated.

Most common reasons business are not compliant

There are numerous reasons why business are not compliant. We list the most common reasons:

  • IT managers find it too complicated to fully understand what is necessary or don’t take the time to learn and understand. The complexity is too high and they are not educated enough.
  • Unintentional misuse. Mergers or acquisitions may make things even worse.
  • Absence of the correct processes and tools to define and monitor the situation.

In some situations businesses are also intentionally misusing their software assets.

Why is it so important?

Being entirely up to date about software inventory and management will not only minimize the risk of audit fines, but will also cut costs in general due to not overbuying on software installations. Properly performing regular software checks is very recommended and should always be incorporated in any company.

Noncompliance: the costs

Some industries like healthcare and financial services are highly regulated and should be extra aware when it comes to being compliant. It can be very costly to be non-compliant. The fines can be enormous and getting higher as time passes. Investing in being compliant is smart since the costs for this are far less than they are for not being so. Put differently: it makes great business sense to guarantee software compliance.

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