Software Asset Management

Perpetual licenses grant the right to use a specific version of the software indefinitely. Once acquired, the organization can use the software for as long as they wish without additional fees. However, perpetual licenses might come with limited support and maintenance, and software updates may require additional costs. It is crucial for SAM professionals to track perpetual license entitlements and ensure that software usage complies with the agreed-upon terms to avoid any compliance issues.

Subscription licenses provide access to software for a fixed period, typically on a monthly or annual basis. These licenses offer more flexibility, as organizations can adjust their software usage according to their needs. However, it's essential to monitor subscription license usage carefully and renew or terminate licenses as required to prevent unnecessary costs or non-compliance due to expired subscriptions.

Cloud-based licenses, also known as Software-as-a-Service (SaaS) licenses, enable users to access software applications hosted in the cloud. These licenses often have a pay-as-you-go or subscription-based pricing model. SAM professionals must closely monitor cloud-based license usage and consider factors such as data privacy, security, and access rights to ensure compliance with vendor agreements and data governance policies.

Understanding the differences between these license types is crucial for making informed decisions during the software procurement process. SAM experts should assess the organization's needs, budget constraints, and future growth plans to determine the most suitable license type for each software application. Additionally, tracking license usage regularly and comparing it against the purchased entitlements ensures compliance and avoids potential risks associated with software audits.

Software Publishers offer different license models, each having its own benefits and drawbacks. Understanding them can help with over-licensing.

The Virtual and Physical license model is a critical consideration for organizations running virtualized environments. In this model, organizations pay for software licenses based on either virtual machines (VMs) or the number of physical processors or cores on which the software is deployed.

For virtual environments, SAM professionals must ensure that all VMs are adequately licensed to prevent compliance issues. Overlooking virtual instances could lead to under-licensing, exposing the organization to risks during vendor audits. Conversely, licensing more VMs than necessary results in over-licensing, incurring unnecessary costs.

In contrast, physical licensing involves counting the number of physical processors or cores in the server hosting the software. SAM experts must accurately track and report the physical hardware inventory to ensure compliance and cost optimization. Properly managing this license model ensures the organization only pays for the actual hardware capacity utilized.

IBM offers two licensing models, Full Capacity and Subcapacity, which apply to software products in their portfolio. Full Capacity licensing requires licensing all physical processors or cores on a server, irrespective of actual utilization. This straightforward model simplifies licensing management but might lead to over-licensing if servers run at lower utilization levels.

Subcapacity licensing, on the other hand, allows organizations to license only the actual processing capacity used on a server. It is particularly beneficial in virtualized environments where not all physical cores are fully utilized. To leverage Subcapacity licensing, organizations must accurately measure and report usage using IBM's approved tools. This model helps optimize licensing costs and promotes efficient resource allocation.

Read more about HCL BigFix certification for IBM: https://public.dhe.ibm.com/software/passportadvantage/SubCapacity/BFI_and_HCL_FAQ.pdf