The Paradox of Trust: Software Asset Management and Data Privacy

Tuesday, 17 October, 2023

In the digital age, the safekeeping of data is paramount. Individuals and organizations alike rely on various software tools and asset management companies to protect sensitive information. The latter often claim to be vanguards of privacy and security, offering services to manage everything from software licenses to critical business data. However, a concerning trend is emerging within the industry — the questionable act of publishing client names for promotional purposes or “clout.”

The Allure of Name Dropping

When a software asset management (SAM) company boasts about their portfolio by name-dropping high-profile clients, it’s often done to gain credibility and attract more business. Having big names associated with a company can be a powerful marketing tool. Yet, it’s essential to ask: at what cost does this promotional strategy come?

Contradictions in Privacy Claims

The immediate issue with this practice is the blatant contradiction in terms. How can a SAM company claim to be a protector of data, responsible for safeguarding the most sensitive assets of a business, while simultaneously sharing client information for self-promotion? 

Sure, the company might argue that the client has given permission for their name to be used in marketing material. Even then, it’s still essential to consider the broader message being sent about how data might be used and who gets to make that decision.

Blurred Lines

In the SAM industry, companies juggling roles as both software resellers and protection consultants face ethical challenges. If they’re open to using client data for marketing, what’s stopping them from exploiting this insider knowledge for added profit? This dual role can cast doubts on the authenticity of their recommendations and erode client trust, making clients question the company’s true priorities: profits or genuine data protection?

Also Read: How to Avoid Conflicts of Interest in Software Asset Management

Undermining Trust

Consumer trust is hard to earn and easy to lose. Organizations entrust SAM companies not just with data but with their reputation. In an era where data breaches are commonplace, even the perception of lax data handling can be detrimental.

The Risks of Revenge

The most benign form of retaliation might involve a vendor scrutinizing the client more closely during compliance checks or audits. At the more extreme end, the vendor might take legal actions, cease discounts, or even terminate the business relationship altogether. These repercussions can have a considerable impact, especially if the software in question is critical to the client’s operations.

Related: Oracle used public data to pressure a power company into purchasing their hardware.

Third-Party Implications

Moreover, while a client may have given permission for their name to be used, have they also cleared this with all their stakeholders? A SAM company will often manage licenses and data that involve multiple third-parties, who might not be aware or in agreement that their business relationship is being publicized.

Ethical Quandaries

Aside from the inherent contradictions, there are ethical questions to consider. Transparency, confidentiality, and informed consent are crucial in any business but are especially sensitive in an industry built around managing assets that include proprietary and confidential data.

Redefining Marketing Practices

In light of these issues, SAM companies may want to reconsider their marketing strategies. Instead of using client names to build credibility, focusing on case studies where the names are anonymized but the results are quantified could offer a powerful alternative. This respects the privacy of clients while still showcasing the effectiveness of the service.


The practice of using client names for promotional purposes, especially in industries handling sensitive data, undermines the very foundations of trust and data privacy. Software asset management companies should evaluate the long-term costs of this approach and consider more responsible methods of showcasing their capabilities. After all, in a business where trust and confidentiality are the assets being managed, compromising those for short-term gains might prove to be a costly mistake.

LicenseFortress maintains a strict confidentiality and data privacy policy. By doing so, they provide a template for responsible behavior within the industry, focusing on long-term trust and effective service rather than short-term gains from marketing clout. Our approach serves as a model for other SAM companies, illustrating that it’s entirely possible to boast a robust track record without compromising on the core principles of trust, confidentiality, and ethical responsibility.

For more information on our services or to discuss how we can assist your organization in maintaining the utmost security and privacy, please contact us or schedule a meeting.