The Importance of Efficient Software License Management (SLM)

The Importance of Efficient Software License Management (SLM)


In this technology age, most organizations are partially or wholly dependent on software to function and remain viable. As per 2018 Gartner reports, IT spending on software grew by 8.7{483d20f9b5ef4c93edb0dddfa055a450f2e5eb51b1599e744973a70352d76753} in 2017 and is expected to continue. While growth is the critical driver in IT spending, most companies do not manage their software assets efficiently. In the Deloitte ITAM global survey 2021, one of their key findings is that about 84{483d20f9b5ef4c93edb0dddfa055a450f2e5eb51b1599e744973a70352d76753} of the respondents believe that they are still lacking in IT asset management tools or initiatives in the organization. This results in a waste of money and hampers overall productivity. The solution to this issue rests in Software License Management (SLM).

In this blog, we’ll explore why a Software License Management solution is vital for any business and why every company should practice it.

Importance of Software License Management

Software License Management is undeniably the critical aspect of IT Asset Management (ITAM) whose main goal is to ensure that your organization complies with all the regulations concerning the end-user and enterprise license agreements. In short, it is the practice of tracking and monitoring the usage and deployment of software licenses within the organization. With this, here’s why software licensing is critical for your business:-

Ensuring software is being used legally

It makes sure that you use the legal and licensed software in your organization as unlicensed software makes your company vulnerable and exposes to potential threats and risks. In these cases, the software owner or copyright owner can take legal actions against you, making you liable. Also, the government can obligate you to pay for the damages on your part.

Better Protection Against Cyber Security Threats And Risks

Unlicensed software is the primary issue behind malware and other types of cyber attacks and threats. It means that the devices that use such software will face more cyber attacks as compared to the licensed software.

Helps You Save Money And Time

You can save time and money through software licensing in an organization, leading to better efficiency and productivity. Cyber threats and risks are expensive in terms of losses and damages, and it takes time to tackle these problems, which will set your business back.

Managing the relationship between the software company and users

The software licensing agreement is the legal document that sets out the requirements that must be adhered to for the end-user to be granted permission to use specific software. This helps in managing the relationship between the software owner and users.

Detailing how they are protected

Software license management protects the software developers’ intellectual property and trade secrets based on copyright laws. The limit also limits the vendor’s liability, at other parties can do with the software code as well.

Why is a Software license necessary for business?

  • Using Unlicensed software is Against the Law

The unlicensed software exposes the business to legal and financial risk. It is considered the unauthorized use, duplication, or distribution of copyrighted software. In this case, the copyright owners can take legal action, and the government can force them to pay damages.

According to the Business Software Alliance, software companies lose about $46 billion annually due to unlicensed software.

  • Offers Better Protection from Cybersecurity Threats

Licensed software is often more secure than unlicensed software, which can help to protect businesses from security threats.

  • Improved productivity and Save Money

Licensed software is often more reliable and efficient than unlicensed software, which can improve productivity and optimize business costs.

  • Enhanced customer satisfaction

Customers often prefer to use businesses that use licensed software, as this indicates that the company is taking steps to protect their data and systems.


While many businesses try to use free tools and services to save money, they take a step back and rethink, but it is not worth the worries and future costs. Software licensing is the perfect and legal way of using software for your business and, thus, will save money and enhance productivity within your company. By working with technology procurement service providers like Infraon, you can get licenses for your business’s essential and helpful software.

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