Software and licensing, without surprises
Software is the category where costs creep quietly: a subscription renewing automatically, twenty licences for people who no longer work there, and a package paid for twice because two departments bought it separately. This page sets out the kinds and says where it goes wrong.
What falls under it
Six kinds of licence
The distribution taxonomy lists sixteen. This is what they come down to in practice.
- Operating systemsWindows, supported Linux, and the server licences underneath. With Linux you are not buying software but a subscription to support and updates.
- Office and collaboration softwareMicrosoft 365, Google Workspace and what hangs around them. Usually the largest line and the one where licence count drifts from headcount fastest.
- SecurityAnti-malware, mail filters, password vaults and endpoint detection. Almost always per user or per device, and almost always per year.
- Virtualisation and infrastructureHypervisors, container platforms and management tooling. This is the category where licensing models have changed hardest in recent years, so a renewal deserves a conversation.
- Backup and recoveryPer machine, per user or per terabyte. Work out which of the three it is, because that decides whether the bill grows with the organisation or with the data.
- Trade-specific softwareDesign, accounting, sector packages. Here the machine or the industry often decides the package and there is little to choose.
Where it goes wrong
Three things that cost money unnoticed
All three are avoidable with a list that is correct.
- Licences nobody uses any moreSomebody leaves and the account stays. On a monthly licence that is money every month, and it only shows up when somebody puts the invoice next to the staff list.
- Renewals that happen by themselvesA subscription renewing quietly at a rate agreed a year ago. Put the renewal dates in a calendar, because the supplier will not do it for you.
- The same thing twiceTwo departments separately buy a package that does the same job. One overview of what runs, and who uses it, takes this out in an afternoon.
What belongs with this
Licensing hangs off management and off security.
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