Software License Management Market Trends

Growth Drivers

• Cost Optimization & Reduction - Software licenses can represent a significant portion of an organization's IT budget. Effective license management helps organizations identify unused or underutilized licenses, enabling them to optimize costs by reallocating or discontinuing unnecessary licenses.  By 2024, 40% of enterprises will use software license management (SLM) as the primary mechanism for reducing SaaS contract costs with "dominant" vendors.
• Rise of Cloud and SaaS- The shift toward cloud computing and Software as a Service (SaaS) enterprise applications have changed the way software is deployed and licensed. Businesses and activities are moving towards cloud technology, which will continue to give SaaS a strong position in the evolution of digitalization. Consequently, it is projected that the spending on SaaS will reach 195 billion U.S. dollars in 2023, growing the need for software license management solutions
• Globalization of Businesses – Organizations with global operations often need to manage software licenses across different regions and jurisdictions. Software license management solutions provide centralized control, enabling businesses to maintain compliance across diverse geographical locations.

Challenges

• Complex Licensing Model - Software vendors often use complex and varied licensing models, including per-user, per-device, subscription-based, concurrent user, and more. Managing these diverse models can be challenging for organizations, leading to confusion and potential over-purchasing.
• Shadow IT & Unauthorized software.
• Inaccurate Reporting