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Organisations can always buy more but if they over-purchase; they cannot get a refund for unused licenses.
A majority of ERP cloud provides lock new customers into annual contracts depending on user counts for fully adopted systems, wasting customer's money on unused licenses.
The caps have also served to inflate the cost of licenses, as holders have engaged in roundabout and lucrative business deals to transfer licenses from one entity to the next, even though the law states that unused licenses revert to the municipality or state.
By understanding their level of software compliance and managing all software licenses, including SaaS and VDI software implementations, they can reduce cost by reclaiming unused licenses and reduce the risks associated with software management.
SAP and other vendors are facing various pressures on their maintenance revenue streams, as customers look at third-party services and seek to "park" unused licenses in order to stop paying maintenance on them.
One of our reference customers, an equipment manufacturing company with 50,000 employees, observed a 6X ROI within 9 months, by reclaiming and repurposing unused licenses," said John Juris, President, SCCM Expert.
The VMware View Rescue program targets customers unhappy with VMware's View technology by letting them trade up to 500 unused licenses for ones with VDI Suite and XenDesktop.
But during the rest of the year, they're left with unused licenses that waste money.
In addition, Johnson estimates the company has saved several thousand dollars in software licensing tees due to the ability to discover and harvest unused licenses.
Software usage information shows which of theses applications are actually being used and how often, enabling IT organizations to reclaim unused licenses, and reallocate them to other departments.
Organizations are trying to maximize the value of their existing purchases by deploying them further or pulling unused licenses into play, thereby further impacting IT spend.
By redistributing unused licenses and renewing maintenance only for those licenses still in use, IT organisations save money.