How Does Software License Management Work?
Learn more about software license management and how Lumos can help you slash your SaaS spend.
Learn more about software license management and how Lumos can help you slash your SaaS spend.
Is your tech stack out of control? Odds are, it probably is. If your company is like many businesses, you probably have upwards of 130 applications in your tech stack…and that’s just the average for companies! SaaS management, when done right, doesn’t have to be a boring, difficult chore. In fact, your SaaS license management process can help you maintain compliance, maximize your investments, ensure your tech stack aligns with your operational needs, and even reduce the burden on your IT team. Sound too good to be true? With Lumos, it’s not. We like to think of our platform as the Gandalf of your SaaS journey, illuminating the path and giving you all the resources you need to optimize your software usage and slash your SaaS spend. So grab your walking stick, tuck an extra handkerchief in your pocket, and let’s get started on the road towards understanding software license management with Lumos in the lead.
A licensed model for SaaS refers to a legal and technical framework used to manage the use of software distributed over the internet. Your software license agreement sets out the terms and conditions under which you are legally allowed to use the software. These agreements define user rights, software functionality, maintenance, compliance measures, and limitations of use.
A simple analogy for software licenses is to think about how library cards work. You sign up for a license, and then you can borrow and use the software’s functionality for as long as your license is valid. When dealing with licenses for SaaS products, it’s important to actively manage your subscriptions in order to maximize your investment.
SaaS licensing models range from the familiar subscription-based to outcome-based and everything in between. Here’s a quick rundown of the common types of SaaS licensing models, each catering to different requirements and business models.
Cutting your software spend involves identifying and eliminating waste—odds are, you’ve got quite a few licenses in your tech stack that aren’t being used or are being underutilized. Your SaaS license management strategy should include:
With Lumos, you’ll find a simple, streamlined license management process flow. You’ll have visibility into your entire tech stack with detailed analytics, user audits, and more. You can quickly identify redundant software and unused licenses. Best of all? You’ll have a single source of truth for software vendor management and a clear view into when your contracts are due for renegotiation. It’s time to use one of the best software license management tools. It’s time for Lumos. Curious how much you could save? Check out our SaaS Management ROI calculator to find out. Ready to get started? Book a demo to see how you can cut your software costs and reduce the burden on your IT team.