License audit: Minimize risks, seize opportunities

Stefan Effenberger

IT Documentation Expert

last updated

07

.

 

April

 

2025

Reading time

3 Minuten

>

License audit: Minimize risks, seize opportunities

The most important thing in brief:

  • Automated license management reduces stress during license audits: The use of Docusnap enables continuous monitoring and documentation of software licenses, which means companies are better prepared for license audits and can avoid potential license violations.
  • Avoiding over- and sub-licensing saves costs: By precisely recording and managing the software licenses used with Docusnap, companies can ensure that they have neither too many nor too few licenses, which ensures both financial savings and compliance with license terms.
  • Transparent license management strengthens IT compliance: A complete and up-to-date overview of all software licenses helps companies meet legal and contractual requirements and minimize the risk of penalties or legal consequences.
  • A license audit is one of the more unpleasant but regularly occurring events in the everyday IT life of many companies. But with the right preparation and suitable tools, IT managers can not only avoid risks, but also draw valuable insights from an audit.

    What is a license audit?

    A license audit is an audit by a software manufacturer or an authorized partner to ensure that a company uses the software products it uses in accordance with the license conditions. This often affects manufacturers such as Microsoft, Oracle, Adobe or SAP.

    The aim of the audit is to uncover installations or uses that do not comply with the license. Violations are not only imminent high post-licensing costs, but also contractual or even legal consequences.

    Why are license audits relevant for IT departments?

    From the point of view of many IT managers, a license audit is initially a time-consuming, stressful interruption of regular operations. The causes of license discrepancies are often banal: lack of overview, incomplete documentation, shadow IT or historically developed infrastructures.

    A practical example:

    A medium-sized company with several locations was invited to a Microsoft audit at short notice. The IT department had to compile inventory lists, license certificates and usage reports in just a few days. The result: numerous old installations and test systems were not properly documented — there were considerable back payments.

    With a well-thought-out license management and suitable tools, such scenarios can be avoided.

    Preparation is everything: Your checklist for emergencies

    A successful license audit starts not just with the official announcement, but with the continuous maintenance of IT documentation. The following checklist shows what IT managers should pay attention to:

    License audit preparation checklist:

    1. Complete software inventory
      • Which software products are in use?
      • Which devices and systems are they installed on?
    2. Centrally document license proofs
      • Purchase receipts, contracts, license keys, and EULAs
      • License types and models (e.g. user vs. device licenses)
    3. Check consumption against existing licenses
      • Avoid over-licensing — prevent sub-licensing
    4. Identify test and development systems
      • Otherwise, they are considered productive
    5. Uninstall installations you no longer need
      • Inactive installations can also be considered a license violation
    6. Clarify responsibilities internally
      • Who is the contact person for audits? Who provides which data?
    7. IT documentation update regularly
      • At least quarterly, preferably continuously

    Risks of a license audit

    • High post-licensing costs
    • Contractual penalties or legal action
    • loss of image among customers or partners
    • Increased internal expenditure and resource commitment

    Audit opportunities

    Despite the seriousness of the situation, an audit can also positive effects Bring along — provided that it has been well prepared:

    • Optimizing license inventory
    • Identification of over-licensing and savings potential
    • Improving internal processes and IT transparency
    • Basis for strategic licensing decisions

    License audit: Neither sub- nor over-licensing desired

    In the past, there were usually manageable licensing models, but today over-licensing can also occur. In other words, more rights to use programs than we might have users.
    But the classic old-fashioned reason of having too few licenses can still occur. This often happens with volume licensing, which still does not purchase an exact number of licenses, but is licensed “from — to.” Virus scanners as enterprise volume licenses immediately come to mind.
    Be that as it may, from a company perspective, neither sub-nor over-licensing is desired. Is used at a over-licensing It quickly becomes clear that you paid too much, when sublicensing, you quickly turn away from the legal path and from then on you depend on the goodness of the manufacturers as to how they handle it. At best, when you become aware, you will only be asked to buy more licenses.

    The obligation to provide information as part of the license audit

    At the latest during a license audit, the person responsible is then not only in the manufacturer's line of fire, but can also deal with the management and explain why too many licenses are being paid for and why no one sees this. Either way, meticulous monitoring and listing of the licenses used is one of the most basic tasks of IT managers.

    Don't be afraid of license audits — thanks to Docusnap

    With its integrated license management, Docusnap offers a simple solution to this problem. Since licenses can be assigned to individual systems with Docusnap, evaluations of the corresponding licensing of these systems are no problem and a clear report can be created quickly. And unless management requests a complete list of all licenses used, licenses can of course also be grouped by manufacturer. As a result, a license audit quickly loses its horror because all licenses are immediately available and can be displayed graphically.
    But even without your own license audit, it has its advantages if you can quickly visualize an overlicensing or sub-licensing in Docusnap.

    Watch our short video to show you how easy it is to do this in Docusnap (only in German).

    Additional information

    Here you can find more information

    Conclusion

    A license audit doesn't have to be a bogeyman. Anyone who does their homework benefits in the long term — through greater transparency, efficiency and security in IT. With the right preparation and a powerful tool like Docusnap by your side, you're ready for any exam.

    The next steps:

    A license audit often comes as a surprise and with a short lead time. It is therefore all the more important to set the course at an early stage. With continuous, automated IT documentation, you create the basis for successful license management — regardless of whether an audit is pending or not.

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