A license management system is a computer application used by end-users or independent software vendors to manage where, how and who software products can run. Licenses, which are unique to each individual program, may grant the user permission to use it on a particular server, while preventing others from using it. This is in contrast to a typical licensing model, where there is no limit as to how much a license user can license. Because of this, a license management system allows users to accurately trace and control licensing compliance within a business.
Companies use the sw license management systems to track and trace their license assets, particularly those associated with sensitive intellectual property. For example, a software license management system can provide an easy way to trace back a software product's original developer and its subsequent distributors. In addition, an effective license management system can prevent an errant employee or vendor from using the asset in ways not authorized by the company. A key feature of an effective license management system is its ability to block or record unnecessary upgrades or changes to license code that may otherwise alter the legal value of the software. This feature can be extremely important for companies that produce or sell intellectual property that is licensed through source code requirements. Additionally, effective license management systems can help ensure that licensed intellectual property remains the property of the original assignor, even after it is transferred to a third party purchaser.
Asset management is one of the top license management uses. Assets are defined by two things: what the person owns (assets) and what they are entitled to (rights). Asset management involves the collection and tracking of all known rights to the same product. In asset management, people own the goods that they have rights to. But they may also own other things like software, computer programs, database or network resources that are related to the product in question. The goal of an effective license management system is to keep track of the people and things associated with the software or product.
Software licensing is another important aspect of asset management. Once an item has been sold or purchased, a person owns the right to use the item forever more - at least within the scope of the original agreement between the buyer and the seller. But what about those who do not have the monetary means to purchase the software? If there is no money involved, how do you track the software usage? License management software provides this service by allowing a company to keep tabs on license usage so that the company is never short on licenses and can always fulfill their end users' needs. Check it out here for more information about getting a compliant SAP security license management automation integrated with automated user provisioning that gives your organisation authority to optimize complex licenses.
Some software license management vendors offer true-up reporting. True-up reporting identifies specific software usage events - which category, when, and by which a user or program. For instance, a particular software package has thousands of reviews and only five percent of them were created by buyers. This kind of software license management allows companies to identify potential license misuse before they happen. True-up reports also tell companies which licenses are being held by employees that aren't being used.
With a license management system, companies can increase their efficiency by reducing manual data entry and tracking of license purchases and re-sales. License management systems can track software usage by program, license type, user, and license period. License management systems can be customized to meet business needs. By using proper license management software, companies can increase profitability and maximize the value of their software licenses. Here is an alternative post for more info on the topic: https://en.wikipedia.org/wiki/License_manager.
