What are Software License Metrics ?

Managing license metrics are crucial for ensuring compliance

12/15/20232 min read

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In the complex world of software licensing, understanding and managing license metrics are crucial for ensuring compliance, optimizing resource utilization, and making informed purchasing decisions. License metrics are defined as the specific characteristics or factors that determine the number of licenses required for software usage. These metrics can vary depending on the software licensing model, but they typically fall into two broad categories: usage-based metrics and fixed-asset metrics.

Usage-based metrics are based on the actual usage of a software application. For instance, a metric for a desktop application might be the number of users or the number of active sessions. For a server-based application, a metric might be the number of CPU cores or the amount of memory consumed.

Fixed-asset metrics are based on the specific features or components of the software that are being used. For example, a metric for a CAD software might be the number of active drawings or the number of licensed templates. For a CRM software, a metric might be the number of active contacts or the number of licensed reports.

By tracking and analyzing license metrics, organizations can gain valuable insights into their software usage patterns and ensure that they are not over- or under-licensed. This information can then be used to optimize license allocation, negotiate better pricing with software vendors, and make informed decisions about future software purchases.

Common Software License Metrics

Here are some of the most common software license metrics:

  • Number of users: This is a basic metric that is often used for desktop applications. It represents the number of unique individuals who can access and use the software.

  • Concurrent users: This metric is more specific to server-based applications. It represents the maximum number of users who can access the software simultaneously.

  • Active sessions: This metric measures the number of active instances of the software that are currently running. It can be useful for identifying potential performance bottlenecks or licensing issues.

  • CPU cores: This metric is used for server-based applications that are resource-intensive. It represents the number of CPU cores that are required to run the software.

  • Memory consumption: This metric measures the amount of memory that the software is using. It can be helpful for identifying potential memory leaks or for determining the appropriate hardware requirements.

  • Storage consumption: This metric measures the amount of disk space that the software is using. It can be important for ensuring that there is enough storage capacity to accommodate future growth.

Benefits of Tracking License Metrics

The benefits of tracking software license metrics are numerous:

  • Reduce licensing costs: By ensuring that organizations are not over-licensed, they can save money on software purchases.

  • Improve license compliance: By tracking license usage, organizations can identify and resolve potential compliance issues before they lead to penalties or legal action.

  • Optimize resource allocation: By understanding how software is being used, organizations can make more informed decisions about resource allocation, such as server sizing and network capacity.

  • Make informed purchasing decisions: By tracking usage patterns, organizations can make more informed decisions about future software purchases.

Tools for Tracking License Metrics

There are a variety of tools available for tracking software license metrics. These tools can range from basic spreadsheets to sophisticated software asset management (SAM) solutions. The right tool for an organization will depend on its size, complexity, and budget.

Conclusion

Software license metrics are an essential part of any organization's software licensing strategy. By tracking and analyzing these metrics, organizations can gain valuable insights into their software usage patterns and make informed decisions about licensing, purchasing, and resource allocation.

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