SOFTWARE LICENSING ✅ BUSINESS ✅ SERVICES

Stage 1. Initial Software Usage Audit

Goal: Identify currently used software, license compliance and detect copyright infringement risks.

Auditor's Actions:

Collection of installed software data (asset scanning, contract analysis).

Comparison of actual usage with current license terms.

Identification of potential violations (overuse, pirated software, expired licenses).

Stage 2: Needs Analysis and License Strategy Development

Auditor's Actions:

Conducting interviews with IT department, accountants, and lawyers.
Determining the optimal licensing model (OEM, SaaS, subscription, etc.).
Calculating Total Cost of Ownership (TCO) for 1-3 years.

Stage 3: License Procurement Support

Goal: Properly formalize license agreements with suppliers.

Auditor's Actions:

Selection of authorized resellers/vendors.

Verification of End User License Agreement (EULA) terms.

Legal risk analysis (liability, restrictions, auto-renewal).

Preparation or approval of agreements, license transfer control.

Stage 4. Contract Signing and Licensing

Goal: Ensure proper activation and documentation.

Auditor's Actions:

Coordination with the IT department for installation and activation.
Recording data on keys, expiration dates, and users.
Briefing responsible personnel on compliance terms.

Stage 5. Implementation Support and License Activation

Goal: Ensure ongoing compliance with licensing terms.
Auditor's Actions:

Development of Software Asset Management (SAM) policies.

Conducting annual/quarterly usage reviews.

Support during external audits (e.g., by Microsoft, Adobe).

Duration: Ongoing (under annual maintenance terms)
Cost: $2,000–$5,000/year (or $200–500/month)

Software Licensing

A license is the right to use software according to specific rules. Without it — you risk fines, data leaks, and security issues. Proper licensing provides protection, updates, support, and organized software management.

Why Is This Important?

Legality. Without a license — copyright infringement and lawsuit risks.
Security. Licensed software receives patches and updates. Pirated versions often contain viruses.
Support. Only licensed customers get access to support and fixes.
Features and Performance. Updates and new features — only with valid licenses.
Long-term Savings. Proper licensing prevents overpaying and license shortages.

Types of Licenses

Commercial:

OEM — tied to specific hardware (e.g., Windows on a laptop).
Retail (Boxed) — for individual users.
Volume/Corporate — for organizations, easier multi-license management.
Subscription — regular payments for ongoing updates.
SaaS (Cloud) — online service access with usage-based payments.

Non-commercial:

Open Source/Free (GPL, MIT, Apache) — code is open but terms vary.
Freeware — free but source code closed.
Shareware — trial period followed by payment.

Licensing Process

Audit: review current installations and usage patterns.
Selection: choose model — purchase, subscription, or SaaS.
Acquisition: vendor/reseller agreement, keys, activation.
Implementation: installation and configuration per license terms.
Management: tracking, renewals, compliance monitoring, and updates.

Practical Tips

Conduct regular software audits — identify excess and missing licenses.
Choose enterprise agreements for >10 copies — often cheaper and more convenient.
For startups — SaaS may be faster and cheaper (no servers, no local support).
When using open-source — verify license restrictions (some require code disclosure).
Include software installation rules in IT policies — prevents risks.

Summary

Properly organized licensing means peace of mind, security, and savings. Fewer risks, less support work, more predictable costs.