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Microsoft Licensing and SAM: Optimising Software Costs

Enterprise software licences are usually a line item that nobody can state precisely. The gap between the licences you bought, the licences you use and the licences you overpay for reaches hundreds of thousands of euros a year in larger organisations. Software Asset Management (SAM) makes that gap visible.

Reading licence types correctly

In the Microsoft licensing model the basic distinction is between the scope (core) and the usage right (user or device). Licences bought through Volume Licensing usually cover an agreed number of users for a period, and getting the measurement right makes a significant difference in an audit.

  • Core based licences: Calculated on the number of servers and virtual machines.
  • Perpetual licences: They grant permanent usage rights; upgrade cover is bought separately.
  • Subscription licences: An annual agreement provides current versions and support.
  • Cloud bundles: A virtual desktop infrastructure changes the licensing model as well.

The steps of a SAM programme

An effective SAM programme has four stages: discovery, reconciliation, optimisation and continuous monitoring.

  • Discovery: Systems, software, versions and usage data are collected automatically across the network.
  • Reconciliation: Deployment data is compared against purchase records to produce the real picture.
  • Optimisation: Unused licences are reclaimed, missing ones are detected and the correct bundle is restructured.
  • Monitoring: Reporting is repeated for new purchases and environment changes.

The most common mistakes

Licence optimisation projects usually arrive at the same table: too many licences, too few licences and the wrong bundle. It is hard to decide which bundle a combined installation requires. Whether a virtual machine inherits the licensing entitlement of its physical host, and how licence mobility works in a cloud environment, are the details that cause trouble.

Preparing for an audit

Preparing the data before an audit is the hardest part of the process. A complete inventory, historical data retention and accessible purchase documents are preconditions for a correct reconciliation. Serventa licensing consultancy prepares this together with your own team.

Licensing is an invisible cost line that hits the budget directly. A well executed SAM programme returns as much to the infrastructure investment budget as it saves on renewals.

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Expert Engineer

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