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5 Signs You'll Face A Software Audit5 Signs You'll Face A Software Audit

When vendors spot these red flags, they may use them as reasons to run a licensing audit.

Doug Henschen

September 2, 2014

2 Min Read

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Software vendors have automated ways to monitor usage of their products, and the larger the company, the more they pay attention to "red flags" that it may be time to run an audit, says IDC's Amy Mizoras Konary. Here are five customer events that Konary says can tip a vendor to do a software audit:

1. Your company is involved in a merger or acquisition. Things can get messy amid such consolidations. Companies might consider calling in software vendor compliance teams for help in sorting out what software is licensed and needed, and what new buying discounts they might get.

2. You're doing virtualization and private cloud deployment. Get a clear understanding of virtualization licensing terms before you start spinning up virtual instances. Unaware administrators can scale up your licensing obligations in a hurry if you're not careful.

3. Your company is growing but not buying more software. "In some situations the sales rep may say, 'They've grown a lot' or 'They did this particular deal, so we should audit them because they should be spending more money with us,'" Konary says.

4. Your top licensing expert leaves the company. Just when you're ill-prepared to document and defend your compliance position, don't be surprised if that's when the audit letter arrives.

5. You're not managing your licensing position. If you betray uncertainty in dealing with software vendors or, worse, defiant-but-vague confidence that you "must be overspending," don't be surprised if those vendors want to verify your compliance position.

Related stories:

Software Licensing: Move From Defense To Offense

Cloud Won't Cure Licensing Woes

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About the Author(s)

Doug Henschen

Executive Editor, Enterprise Apps

Doug Henschen is Executive Editor of InformationWeek, where he covers the intersection of enterprise applications with information management, business intelligence, big data and analytics. He previously served as editor in chief of Intelligent Enterprise, editor in chief of Transform Magazine, and Executive Editor at DM News. He has covered IT and data-driven marketing for more than 15 years.

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