Software license management has become an integral part of large as well as small businesses. Without proper software license management, businesses can lose large amounts of money and put their internal resources at risk.
As more SaaS tools make their way into our workflows, software license management becomes even more important. Software is sold and rented through licenses, and the validity of the licenses proves the validity of your software ownership.
A robust system to manage your business’s software licenses can benefit small businesses in terms of money and productivity. Let’s learn more about the six benefits of software license management for small businesses.
Here are the 6 main ways in which your small business can benefit from a robust software license management system.
The primary cost-saving element of software licensing management tools is their ability to prevent over-licensing. Simply put, Over-licensing refers to purchasing more software licenses than necessary for a business's needs. This can be a costly mistake for small businesses, as software licenses can be expensive and purchasing unnecessary licenses waste a significant portion of the business's budget.
Small businesses can save money on software costs by avoiding over-licensing and investing that money in other areas.
There are several reasons why a small business might over-license software, including:
By being proactive and carefully managing their software licenses, small businesses can avoid these pitfalls and save money on software costs.
Apart from that, small businesses can negotiate more favorable license terms with software vendors through a software license management system. It also results in cost savings and budget optimization.
Most small businesses struggle financially, and unused or unnecessary licenses only add to the burden. When you have a robust software license management system in your small business, you can avoid several money-losing traps associated with software use.
If not anything else, use software license management to save money for your business.
Software license management can help improve productivity by ensuring that only the necessary licenses are in use in your small business. Moreover, it also checks if the licenses are up-to-date. By making sure no license is wasted, companies can simultaneously improve productivity and save money.
On top of that, software license management systems boost productivity in the workplace in the following ways:
Most importantly, it also eliminates the need to manually manage and track each license, allowing companies to save valuable time and resources.
Small businesses typically use software tools to automate and streamline tasks, capture data more accurately and quickly, and provide insights into customer behavior and preferences. However, this wouldn’t be possible if the business has to spend a large chunk of time and resources on software license management.
Using an automated system also improves communication and collaboration between stakeholders and reduces the time and effort needed to manage software licenses. As a result, the interaction between different wings of the business becomes smoother and less conflicting. These are the reasons more and more small businesses are leaning toward software license management tools.
If you’re trying to make your workforce more productive, software license management can be a valuable addition to your workflow.
Every business, small or large, has to comply with domestic and international regulations. While many regulations are financial in nature, some also concern the use of software resources. For example, using software with an expired license is considered a breach of regulatory guidelines.
Companies must ensure that they thoroughly understand the regulations that apply to their business and that they are compliant with those regulations at all times. They can do this by:
Additionally, companies should ensure that any changes to their software resources are compliant with the relevant legislation by consulting an expert or obtaining appropriate legal advice. While there are many ways of doing this, using a software license management system is one of the most effective approaches.
Software license management systems enable companies to manage their software licenses in a secure, automated manner. They provide features, such as:
This helps ensure that companies have access to the latest versions of software, licenses are valid and up to date, and their software usage is in accordance with applicable laws.
If you’re using unsafe or unauthorized software, you are making your business vulnerable to online threats.
Unsafe and unauthorized software can contain malware, viruses, and ransomware that can damage or disable your system, put your confidential data and customer data at risk and increase your risk of security breaches. Additionally, software that is not approved and maintained can cause slowdowns, errors, and system crashes.
All of these can have a negative impact on your business operations and even your reputation. It is important to ensure that all software used by your business is safe and secure and is regularly updated to maintain its security.
Using a license management tool is the best way for small businesses to protect their data, customers, and resources.
License management tools help businesses know what software is being used and what isn’t. It can also alert businesses when unauthorized software is being used, when unauthorized activities are occurring, and when there are any other security risks.
Using a license management tool helps improve software security and reduce the risk of data theft and other security threats. To ensure the safety of your business, it is important to always use licensed and approved software. The use of a license management tool can help protect your business and its data by monitoring and tracking all software usage, as well as helping to keep you up-to-date with the latest security patches and updates.
If you run a small business, scalability should be a guiding factor in every decision you make. You may have a demand of 100 units this month, but it can shoot to 1000 units the next month. Scalability refers to the ability to be able to meet increased demand without hindering the usual workflow.
Software license management tools help small businesses become more scalable.
These tools enable businesses to grow their customer base, quickly add new users, and scale their product offerings with ease. For example, a software license manager can help manage license agreements and provisioning, quickly assign new users to additional applications, and provide consolidated billing.
Scalability should also be considered when making infrastructure decisions. Investing in scalable technology, such as the cloud or virtualization solutions, can help small businesses manage growing demand without taking on additional resources or personnel.
If you’re looking for a scalable solution for your small business, using a software license management tool is a no-brainer. It can help you increase customer satisfaction, eliminate the need for manual license management, and simplify your infrastructure. The overall benefits of software license management will make your business more capable of meeting sudden spikes in demand.
It’s essential for small businesses (and large businesses) to have a system for effective decision-making that takes into account every relevant variable. Doing this without any automated, data-driven solution can be extremely difficult.
The connection between better business decision-making and using software license management systems is not intuitive. However, it’s one of the key reasons more businesses use license management tools.
Software license management systems can help increase data accuracy and make better decisions. Data-driven decisions are based on real-time insights, accuracy, and cost savings. This means businesses can make decisions more quickly and efficiently.
For example, a business can use license management software to track its subscription costs, expiration dates, and license renewals. This information can help businesses make faster, better decisions about their software investments. Additionally, with greater visibility, it can help them optimize their use of existing software licenses and avoid overspending.
If you’re struggling with data-driven decision-making in your business, a software management tool can come to your aid. It can help you keep track of your license agreement details, automate license management tasks and boost data accuracy. All of these improvements to your data collection and analysis can help you make better business decisions.
Does your small business have a software license management system?
If not, you’re missing out on each of the abovementioned benefits. Use a software license management system for your small business to maximize efficiency and profitability.
Atreyee Chowdhury is a freelance content writer with more than 10+ years of professional experience. She is passionate about helping SMBs and enterprises achieve their content marketing goals with her carefully crafted and compelling content. She loves to read, travel, and experiment with different cuisines in her free time. You can follow her on LinkedIn.