Phantom licenses and real savings: the software audit your CEO needs

Recover up to 30% of your software budget.

For many chief executive officers (CEOs) and chief financial officers (CFOs), spending on software software represents a significant and often uncontrolled cost line. In the age of underwriting ( SaaS) and per-user licenses, it is common for companies to pay for assets that are not being used, are duplicated or have simply been forgotten: the so-called "phantom licenses". "phantom licenses"..

The challenge of Software Asset Management Software Asset Management (SAMSoftware Asset Management (SAM), Software Asset Management) lies in inventory complexity. The proliferation of departmental applications, high employee turnover and lack of communication between IT, procurement and finance create a breeding ground for waste. It is estimated that companies could recover between 15% and 30% of your annual of your annual software software simply by optimizing the use of your licenses.

The solution to this problem is not simply to reduce spending, but to carry out an audit. Software Software Audit audit that combines technical accuracy with financial insight, an audit that truly captures the attention and meets the information needs of the CEO.

Detection of "Phantom Licenses".

A "phantom license" is any software license that is software license for which the company is paying, but which is not being used by an active employee or which is installed on a device without anyone using it.

To combat this problem, the IT Asset Management (ITAM ) must evolve from a static inventory to a dynamic financial optimization tool.

The Fundamental Role of Automatic Discovery and the CMDB

The basis of a software audit software audit effective is the accuracy of the data. Without knowing what software is installed whereaudit is just a guess.

Automatic discovery and traceability

A robust ITAM solution, such as the one offered by Proactivanetuses Discovery tools and agents installed on the endpoints endpoints to continuously scan the network. This process of Discovery does much more than simply list the devices; it details all the software installed on each machineincluding version, installation date and, crucially, the last date of use. last date of use.

This real-time traceability allows the SAM team to identify immediately:

• Unused Facilities: A software installed six months ago that has not been run once.
• Unnecessary Assignments: An employee who is assigned a high-cost graphic design license, but whose last activity with that application was four months ago.

2. The CMDB as a single source of truth

The CMDB (Configuration Management Database) acts as the central repository and "single source of truth" for all audit data. It correlates three vital data sets:

• Inventory Data (Reality): What is installed and where (coming from the Discovery).
• Contractual Data (Rights): The licenses that the company has purchased and their terms and conditions (coming from the Purchasing record).
• Usage Data (Utilization): Who is using it and how often.

By cross-referencing this data, the system can automatically generate an effective license position (ELP). effective license position (ELP) and alert on cases of over-licensing (over-licensing) and under-licensing (risk of non-compliance).

Generating direct and quantifiable savings

The audit of software should be seen as a revenue-generating initiative (by avoiding unnecessary expenses), not as an administrative expense. The positive impact on the company's balance sheet is direct:

Strategy 1: Reclaiming and reallocating licenses

Once the tool identifies a phantom license (software unused software on an endpoint or license assigned to an inactive employee), the SAM team can take immediate action:

• Uninstallation: The software unused software is remotely uninstalled to free up the asset.
• Reallocation (Harvesting): The released license is placed in a pool available to be reassigned to a new or existing employee who needs it, avoiding the need to purchase a new license.

Strategy 2: Contractual optimization

Accurate knowledge of usage allows the company to negotiate better terms on contract renewals. If the audit reveals that only 60% of the 1,000 licenses of a key application are actively used, the CEO can order a reduction in the number of licenses to be renewed, or negotiate a pricing model based on actual usage, generating significant structural savings.

The Compliance Mitigating financial risk

Beyond savings, an accurate audit is the only effective defense against compliance risk. compliance. Surprise audits of the manufacturers of software (such as Microsoft, Oracle or Adobe) can result in millions of dollars in fines if the company is under-licensing its software. under-licensing (using more software than it has paid for).

The role of the strategic MAR is twofold:

1. Avoiding Under-licensing: The system issues preventive alerts before the number of licenses purchased is exceeded, allowing the Purchasing team to acquire the necessary additional licenses.
2. Justify the Over-licensing (Savings): Provide accurate and documented usage data to justify licensing reduction decisions, demonstrating to the CEO that the organization is not wasting capital on unnecessary assets.

In short, investing in an ITAM solution that integrates DiscoveryCMDB and license management is a financial decision with a clear return on investment (ROI).ROI). It allows the company to migrate from uncertainty to control, transforming data from uncertainty to control. software into a powerful tool for cost savings and risk mitigation, a critical need on the agenda of any modern business leader.