The need for new software in companies is constantly increasing – not least due to the constant advance of digitalization. The fact that speed often falls by the wayside in the process puts IT managers and purchasers in a tight spot, as they are supposed to take care of cost savings, secure handling of applications and efficient working. In addition, software vendors often rely on complex license models, which can range from user numbers to usage. Therefore, determining the exact software license requirements is a critical factor for companies if they want to keep up with growing demands and costs.
Procedure for determining license requirements
Well-maintained inventory
The first step is an accurate inventory of all applications used in the company. A comprehensive catalog must be created, software cataloged and ideally estimated according to usage. The latter alone cannot be achieved without tools. An additional difficulty is the identification of browser-based applications in particular (which are gaining in popularity), as they usually do not require installation rights, which can be prevented by IT in advance for security reasons.
This inventory must be constantly checked to ensure that it is up to date and the corresponding license requirements must be checked with the purchasing department.
App Discovery
Analysis of usage and behavior patterns
Once you have created a comprehensive inventory, the next step is to check the individual applications themselves in detail. Are all modules, functions and extensions actually being used by all users? There are often hidden costs here that are often overlooked or cannot be identified in a superficial analysis or manual inventory.
Such an analysis not only increases the understanding of workflows and processes within software, but also provides an ideal basis for knowing all the details and cost reduction options on your side when selecting license models.
User Behavior Mining
Reporting to all relevant stakeholders
Detailed analyses of hundreds, even thousands of users in different applications (depending on the size of the company) result in a sheer unmanageable amount of data for evaluation. It is therefore advisable to transfer this data to evaluation tools or business intelligence programs so that not only can all relevant decision-makers access it, but they can also interpret these values independently of each other. This ensures a holistic perspective and helps to identify potential challenges and needs at an early stage.
Insights Center
Advantages of determining the exact license requirements
Cost savings
This aspect is the most obvious. An exact determination of the requirements makes it possible to optimize or reduce expenses for licenses. By determining the exact number of licenses required (including those for extra modules and functions) and selecting suitable license models, unnecessary costs can be avoided very quickly and sustainably.
In addition, knowing the precise number of licenses required helps you to take a stronger negotiating position with software providers in order to negotiate better contract conditions or to be able to weigh up the pros and cons of price packages that meet your own needs and the corresponding conditions offered.
Resource optimization
An analysis and the resulting insight into the use of software offers a completely new view and transparency of the application landscape, processes and teams. It also enables efficient resource allocation for targeted software investments. Namely those that actually meet the requirements. Ideally digitally verifiable and not based on manually created and evaluated questionnaires about what employees would like or what is ordered on demand. In addition, synergies and overlaps in software purchases between departments can be identified and used more quickly – even retrospectively.
Increasing efficiency
The global view of processes and precise knowledge of software usage (or license requirements) enables a more structured and therefore more efficient IT infrastructure. Companies can act faster, allocate resources more efficiently and ultimately significantly increase the performance and productivity of their employees, as they can work more productively and operational processes run more smoothly. But also share best practices, e.g. with international colleagues, or switch directly to efficiency.
Determine your own license requirements
Would you like to delve deeper into the use of browser-based business software and analyze its use? We will be happy to advise you or provide you with further information so that you can soon find out your exact license requirements and much more.
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AppNavi GmbH
+49 89 262 025 490
pr@appnavi.com
https://appnavi.com