Why is rightsizing important for your business?
Making sure that you have the right number of licenses to cover your needs might sound easy, but in reality, it isn’t. Having a “wrongly sized” licensing estate can result in increased financial risks. The main risk many companies face is related to non-compliance which leads to financial risk. Being audited is never a pleasant experience but being audited and found non-compliant is even less pleasant. If you’re not prepared for an audit, you may be faced with (high) unexpected costs, in addition to frustrations and time that you need to invest in fixing the non-compliance. When you know what you have, what you need and what you actually use, you can decide if a certain level of risk is acceptable or if you want to take precautions.
In addition to the financial exposure during an audit, there may be some hidden cost as well. As mentioned before, you might have purchased specific licenses or subscriptions that you needed at the time but are no longer using them, while you continue to pay for them. Understanding if you can get rid of this shelfware and under what conditions can lead to significant savings. Similarly, you can have licenses that cover more functionalities than your employees need or user types that provide more rights than needed. For example, everyone in the organization has editor rights, but only few or some employees really need that particular full functionality. This means that you are overpaying for the editor rights license for everyone, instead of adjusting your licenses to pay less for those that only need viewing rights.
Lastly, software vendors allow you to have both Cloud and on-premises licenses that cover the same usage. It’s your responsibility to ensure that you have the right licenses for your programs, but also that you don’t have duplicates. It can be very challenging to know when and what to terminate, if you don’t have a good overview of your estate.