Every day it becomes more evident the control organizations must exercise on its technology platform in regards to software licensing. In this sense, brands / manufacturers, government agencies and organizations protecting intellectual property are applying more pressure, increasing every year the number of companies that are audited or subjected to some kind of licensing analysis. These audits or analyzis range from SMB’s to large organizations, highlighting the challenges the market has in the areas of licensing.
In the chart below, originated in a study by Ernst & Young, about why software manufacturers audit, it appears that 63% of compliance programs are aimed at never realized revenue recovery, due to multiple reasons associated with weaknesses in their licensing processes.
These reasons can include: lack of studies previous to sale, customers misinformation, unclear licensing policies, urgency in the negotiations, budget constraints, etc. At the same time, this phenomenon within software consumer organizations, presents its own challenges that often leads to overruns beyond the licensing itself. Taking preventive and / or corrective action at an early stage is a good first step to prevent unnecessary spending due to software licensing inefficient administration.