Software licensing is rarely a problem caused by one bad decision. More often, it’s the result of lots of sensible, reasonable decisions made over time, each one small enough to feel harmless in isolation.
This is why licensing issues often surface late, usually when:
- Costs feel higher than expected
- Finance asks for clarity
- A renewal is due and nobody is fully confident what actually is in use
This blog looks at how licensing drifts, why it’s so common in internal IT environments, and how organisations can regain visibility without creating unnecessary work.
Why Licensing Drift Happens
Most organisations don’t set out to mismanage licensing. In fact, the causes are usually practical:
- Change happens faster than reviews
Users join, leave, or change roles. Projects start and stop. Temporary access becomes permanent. Licensing rarely keeps pace with this level of operational change. - Ownership is unclear
In many businesses:
– IT manages the systems
– Finance pays the bills
– Department heads request accessWhen responsibility is split, licensing reviews can quietly fall into the gaps between teams. - Renewals become routine
Once a licence agreement is in place, renewals often become an administrative task rather than a strategic review. If nothing has broken, it’s easy to assume everything is still appropriate. - Platforms evolve continuously
Vendors like Microsoft update:
– Plans
– Feature sets
– Bundles
– Pricing structuresWhat made sense two years ago may no longer be the best fit today, even if user numbers haven’t changed.
What Licensing Drift Looks Like in Practice
Individually, these issues are rarely dramatic:
- Users on higher-tier licences than their role requires
- Former staff still assigned licences
- Add-ons enabled for one project and never removed
- Overlapping tools performing similar functions
- The challenge is cumulative impact.
By the time licensing is reviewed properly, the cost difference is often significant.
Why The Issue Often Surfaces Late
Licensing drift is quiet. There’s no alert to say “this no longer makes sense”. There’s no system failure. There’s no security incident. The trigger is usually external:
- A budget review
- A finance query
- A new IT leader asking basic questions
- A renewal quote that doesn’t align with expectations
At that point, the conversation is reactive rather than planned.
The Real Cost Isn’t Just Financial
While wasted spend is the obvious issue, there are wider impacts:
- Time spent answering last-minute questions
- Pressure on internal IT teams to justify historical decisions
- Reduced confidence in cost forecasting
- Friction between IT and finance
Licensing becomes a source of stress rather than a managed asset.
What Effective Licensing Management Looks Like
Good licensing management doesn’t mean constant reviews or heavy process. It usually involves:
1. Clear ownership
One role or team is accountable for:
- Licence allocation
- Role-based standards
- Regular sense-checks
This doesn’t mean doing everything alone — just owning visibility.
2. Lightweight, scheduled reviews
Quarterly or biannual reviews are often sufficient.
The goal isn’t perfection; it’s preventing drift from compounding.
3. Role-based licence standards
Defining:
- What a typical user needs
- What elevated roles require
- When exceptions apply
This makes changes easier to manage and justify.
4. Separation of access and entitlement
Just because someone can access a feature doesn’t mean they need a permanent licence for it.
Temporary access should be treated as temporary.
When It Makes Sense To Get External Support
For many internal IT teams, licensing reviews sit low on the priority list, not because they’re unimportant, but because they compete with:
- User support
- Projects
- Security responsibilities
- Vendor management
External support can help by:
- Providing an objective view
- Highlighting misalignment early
- Translating technical licensing into commercial clarity
The key is that support should complement internal IT, not replace it.
Final Thought
Licensing rarely becomes a problem overnight. It becomes one slowly, quietly, and usually with the best intentions.
A small amount of regular visibility is often enough to prevent a much larger conversation later on.
If licensing hasn’t been reviewed in a while, that doesn’t mean something is wrong, it just means now is probably a good time to look.
