Are you feeling overwhelmed with how much money you’re spending on IT licensing? Are there too many fees, renewals, and upgrades to keep track of, making it difficult for your organization to manage day-to-day operations efficiently? With the ever-changing landscape of technology comes the complexity of IT licensing and compliance. Keeping up with the necessary updates can be a full-time job in itself—but one that is worth the effort if handled correctly. Let’s take a look at what you need to know when considering options regarding IT licensing.

Signs That Your Business May Be Spending Too Much On IT Licensing

You are paying for licenses that you don’t use

Are you spending money on software or services that no one is using? Are you aware of how much IT licensing your company has purchased? If not, it’s time to take stock. Reviewing your IT licensing periodically will help you save money by getting rid of services and software that you don’t need. Those funds can be used elsewhere to benefit the company. Don’t be caught wasting money on subscriptions and features that are sitting idle when they could be put to better use. Keep an eye out for unused spending within your IT license budget so you don’t run into surprising charges when it’s time to renew. It takes minimal effort but goes a long way towards better leveraging company resources.

Your IT costs are growing faster than your business

Are your IT costs climbing faster than the growth of your business? If so, it could be a sign that you’re overspending on licenses. To stay mindful of this and ensure you’re staying on budget, remember to review your IT expenses regularly. Making sure that your technology funds are in line with your organization’s progress is key for a prosperous future. That way, you can keep track of your costs and focus on the growth of your business.

You are not taking advantage of volume discounts

Are you running a big business? If so, then there are plenty of reasons to be extra happy—you have the opportunity to get great discounts on software licenses. Many software vendors offer volume pricing for larger orders, so if you’re not taking advantage of this discount system, it may be costing you. Instead of paying full price for licenses, checking out these great discounts could mean major savings! After all, cutting corners and saving money is an important part of running a vibrant business.

You are paying for licenses that are not being used to their full potential

Are you only coming close to scratching the surface with regards to taking advantage of the full potential of a particular software solution or service? If so, that could mean you’re overspending for a license for something you’re barely benefitting from! Instead of trudging through an expensive unwieldy contract, pause and take stock to ensure you are reaping the most bang for your buck. Review your usage from time to time. This will make sure you’re getting the best out of what’s available through your licenses.

You are constantly paying for upgrades

Do you seem to find yourself constantly forking out money to order upgraded versions of the software or services you use? Well, it might be a sign that you are spending way too much for different sorts of licensing fees. It’s worth taking the time to go over those licensing agreements once more and make sure that you aren’t paying too much just to get hold of something that isn’t actually necessary.

Overall, it’s important to regularly review your IT licensing to ensure that you are only paying for what you need and that you are getting the best value for your money.

To conduct an honest review of all your IT expenses, you should:

  • Gather all IT expense data

The first step is to gather all the data related to IT expenses, such as invoices, receipts, contracts, and any other relevant documents.

  • Categorize expenses

Categorize the expenses into different categories, such as hardware, software, licenses, and maintenance. This will make it easier to analyze the data and identify any areas where expenses may be higher than expected.

  • Evaluate contracts and agreements

Review all contracts and agreements with IT vendors to ensure that the business is getting the best possible deal. Look for any hidden fees, penalties, or unnecessary services that can be eliminated.

  • Analyze usage and cost

Analyze the usage and cost of each IT expense category to identify any areas where expenses may be higher than expected. Compare the cost of each IT expense to industry benchmarks to determine if the business is paying too much.

  • Consider alternatives

Consider alternative options for each IT expense category, such as switching to open-source software, cloud-based services, or outsourcing IT support. This can help the business reduce expenses without sacrificing quality.

  • Create a plan

Create a plan to reduce IT expenses based on the findings of the review. This plan should include specific actions that the business will take to reduce expenses in each category.

  • Monitor progress

Monitor progress regularly to ensure that the plan is working and that IT expenses are being reduced as expected. Make adjustments as necessary to ensure that the business is on track to meet its goals.

At Gryphon Consulting, we can help you with your licensing audit. Reach out to us today by calling 301-789-1029.