Software license compliance is a major problem for organizations that grant third-party software licenses. If you obtain a software license for multiple users in your organization from an external provider, you may be subject to external audits.

All companies must comply with licensing agreements to avoid possible problems in the future as they can represent your business, expensive expenses and large fines

To ensure that you comply with the terms of your service level agreements, be aware of the situation since your organization could be affected by:

• "True-ups": pending fees that must be paid if it is discovered that the organization is using licenses that exceed what is allowed in its service level agreement.
• Additional financial penalties for violating the terms of the service level agreement.
• An invoice for the cost of the software audit that discovered the breach issues.
• Retroactive license charges if there is a long history of improper software implementation that violates the service level agreement.

Good IT asset management software allows automated detection of what software is installed on each computer connected to the business network and helps ensure compliance and avoid significant penalties associated with a bad software audit.

For example; When the business purchases 10 software licenses but installs the software 15 times, it could be subject to fines for violating its service level agreement with the software provider.

But if the business buys 15 licenses and only uses 10, it generates a cost that should not exist, because it hurts the business economy.

Software applications can be used to track the number of machines on which a particular application has been installed, as well as actual application usage statistics. After all, a paid license is still wasted if the application is never touched by the user, and this is a good opportunity for your business to reduce costs.

Organizations are using IT asset management software to evaluate software installation and analyze software usage data, which helps eliminate the excessive costs associated with unused software licenses.