Software asset management is the business practice of monitoring and optimizing the cost, purchase, deployment, usage and maintenance of software licenses. Successful software asset management ensures a business pays only for the same number of licenses it actively uses.
A discrepancy between installed licenses and paid licenses leads to unnecessary costs. Software vendors often audit a business’s license usage to make sure it isn’t overpaying or underpaying for the software licenses it’s using. Software asset management helps businesses pass audits by tracking software usage, renewal dates, installation and areas of over- and under-utilization.