Top Factors to Consider When Licensing Software

Many of us go through our everyday lives accepting terms and conditions within apps, programs, and operating systems without a second glance. Clicking that “terms and conditions” box when a new program is installed is often automatic and pragmatic. Software licensing, however, is often a confusing thing because it requires more thought, particularly because there are different kinds of licensing agreements. What is software licensing and what are some ways that you can better understand the intricacies of these agreements? We answer these questions and more in this week’s blog.

What is Software Licensing?

First things first, a software licensing agreement is a legal contract between a company and its end-user. These agreements protect the intellectual property of the software developer and outline the type of use that is approved. Under copyright law, most software will fall within either proprietary (or closed source) or free and open-source software (FOSS). FOSS allows customers to reuse or modify software code.

Ensure Software Compliance

All Microsoft software products are proprietary. Purchases available at Trusted Tech Team are confined to usage-per-instance and per-user. It’s important that you and your company are in compliance. Large corporations, such as Microsoft, have teams of employees who ensure that their intellectual property is being used properly. No company wants to get a compliance report from Microsoft’s Software Asset Management (SAM) Team. Therefore, choosing the right licensing from the beginning provides you with peace of mind knowing that you’ve done everything correctly. We’ve provided multiple guides and resources that help you learn what digital software licensing is, as well as the Windows Server Licensing Calculator and Windows Server Licensing and Information.

Common Licensing Mistakes

Often, software licensing non-compliance is not done intentionally. The ramifications of non-compliance, even unintentional non-compliance, are great enough and often involve steep fines. There are common licensing mistakes made by companies that can result in non-compliance. Non-compliance can occur by forgetting to renew licensing and allowing it to expire. Under no circumstances should employees be allowed to purchase software for their work computers. This should only be done by IT professionals or the individual who is responsible within the organization for tracking purchases and documenting any updates that will need to be made.

Don’t Underestimate the Importance of Licensing

Many end-users and consumers underestimate the complexities of software licensing. This can be detrimental to your company and can land you in hot water. It is always a good idea to reach out to software professionals who are familiar with the software product you’re dealing with so you can be sure you’re selecting the product you need. This is even more important as companies transition to SaaS: licensing intricacies are likely to become more complicated as the software options, delivery methods and products become more varied.