License Management: Control Your Software Assets

Effective license management provides significant benefits:

Legal compliance: Proper management avoids unnecessary license purchases and ensures respect for vendor agreements, protecting the company from potential legal sanctions.

Cost optimization: By knowing exactly what software is installed, who uses it, and how, IT managers can identify underutilized, expired, or duplicated licenses—reassigning or not renewing them leads to significant savings.

Risk reduction: Audit protection and clear documentation of license ownership and usage.

Operational efficiency: Streamlined processes for requesting, approving, and deploying software.

Budget planning: Accurate forecasting of software costs based on actual usage patterns.

Implement these practices for effective license management:

Continuous monitoring: Track license usage to ensure you don't exceed acquired license limits.

Clear policies: Define policies for software installation and use, ensuring only valid, authorized programs are used.

Periodic audits: Conduct internal audits to verify license compliance and detect potential irregularities.

Centralized tracking: Maintain a single source of truth for all license information.

Renewal management: Set up alerts for upcoming renewals to avoid service interruptions or auto-renewals of unused software.

Usage analysis: Regularly review whether you're getting value from each software investment.

Agencies have specific license management considerations:

Creative software: Design tools, development environments, and production software often have expensive per-seat licenses.

Project-based tools: Some licenses may be needed only for specific client projects.

Contractor access: Managing licenses for freelancers and temporary team members adds complexity.

Client billing: Some software costs should be passed through to clients.

Tools like Monton help agencies track not just employee time and projects, but also understand the full cost structure—including software—that impacts project profitability. When you know the true cost per hour including license overhead, you can price work accurately.