The short answer
This article compares three options for handling software procurement and licensing risk: relying on your internal team, hiring an outside license consultant, or engaging LicenseFortress, one provider in the license advisory and managed-service market. The right fit depends on your in-house expertise, how much risk you're willing to carry, and what responsibilities each party takes on in writing.
Why software procurement keeps getting harder
| Factor | What it means for buyers |
|---|---|
| Licensing models | Perpetual, subscription, concurrent and user-based licenses each carry their own terms. |
| New technology | Virtualization, cloud, containers and IoT create deployments that older license terms don't clearly cover. |
| Vendor-specific terms | Each vendor counts usage differently and sets its own transfer and virtualization rules. |
| Audits | Vendors audit licensees and expect detailed proof of entitlements and usage. |
| Global operations | Different jurisdictions, privacy laws and export rules add obligations. |
| Business change | Mergers, divestitures and upgrades change what you need to license. |
| Cost management | Avoiding over- and under-licensing takes careful analysis and negotiation. |
The three options compared
| 1. Internal team | 2. Outside license consultant | 3. LicenseFortress | |
|---|---|---|---|
| Who does the work | Your IT and procurement staff | The consultant advises; who carries out the work depends on the engagement | LicenseFortress helps review and manage licensing, optimization and negotiation within the agreed engagement scope |
| Expertise needed in-house | Full license expertise for each vendor | Enough to manage the consultant and act on advice | Enough to meet your responsibilities under the agreement |
| Independence from vendors | Depends on whose advice you rely on | Varies; check for vendor ties | Positions itself as independent of software vendors |
| Responsibility and liability | Stays with your organization | Set by the engagement agreement | Set by the engagement agreement. Financial guarantee listed for ArxProtect®; coverage and responsibilities depend on the applicable agreement. |
| What it costs | Internal staffing and tools | Consulting fees plus your implementation effort | Service fees plus the responsibilities your organization keeps |
Option 1: Your internal team
How it works: You buy software and support, then rely on your own staff (and sometimes the vendor's sales rep) to decide which products and how many licenses you need, and to deploy within the license terms.
Works best when:
- Your team has deep, current knowledge of each vendor's license rules
- Your estate is small and stable
- You can show entitlements and usage on demand
Watch out for:
- Relying on vendor advice, which can leave you paying for products and support you don't need
- Losing negotiating ground when an audit arrives
Read how one customer's go-it-alone approach cost them negotiating ground in an audit.
Option 2: An outside license consultant
This section describes license consultants in general. It doesn't describe LicenseFortress.
What consultants typically offer:
- License position reviews against your contracts
- Guidance on vendor license rules and deployment choices
- Tools, reports and training so your team can manage licensing
Questions to ask before hiring one:
- Does the consultant have commercial ties to the vendors they're advising on?
- What does the engagement agreement say about responsibility and liability if advice proves wrong?
- Will they stay involved, or hand over tools and leave your team to carry out the work?
Key point: Responsibilities and liability depend on the engagement agreement. Read it before you rely on the advice.
For more on choosing an adviser, read How to Choose a Software License Consultant and How to Avoid Conflicts of Interest in Software Asset Management.
Option 3: Engaging LicenseFortress
This section describes LicenseFortress's specific services.
What LicenseFortress does:
- Helps review and manage software licensing, optimization and negotiation within the agreed engagement scope
- Catalogs products and workloads across production, staging, UAT and disaster recovery
- Works to reduce software costs by optimizing active licenses and identifying licenses no longer in use for retirement
- Covers cloud, virtual and physical deployments
Financial protection: The published service comparison lists a financial guarantee under ArxProtect®. Confirm the coverage and customer responsibilities in the applicable agreement.
Related services:
- Software License Compliance and Optimization Review
- Software License Audit Defense
- Software License Contract Negotiation
- SAM Managed Services
Which option fits your situation?
| Situation | Questions to settle first |
|---|---|
| Upcoming renewal | Do you know your real usage and which products you no longer need? |
| Audit notice received | Who will respond to the vendor, and what does each agreement make them responsible for? |
| Cost optimization | Can you show what's deployed against what you're entitled to? |
| Complex or multi-vendor purchase | Does anyone in-house understand each vendor's metrics and virtualization rules? |
Before you engage anyone: checklist
- ☐ Gather current contracts, order documents and entitlements
- ☐ Inventory deployments across all environments
- ☐ Find out whether any adviser has ties to the vendors involved
- ☐ Read the agreement's scope, responsibilities, liability terms, conditions and exclusions
- ☐ Set the scope: renewal, audit, optimization or ongoing management
