Software asset management best practices are the habits that keep an organization’s software legal, affordable and under control. They decide whether a vendor audit is a week of spreadsheets or an afternoon of exporting evidence, and whether the next renewal is negotiated from real install counts or from the vendor’s numbers.
Most organizations do not lose control of software in one step. Licenses are bought by different teams, installs drift away from what was bought, people leave without handing anything back, and nobody owns the gap. This guide sets out what software asset management (SAM) is, ten best practices that close that gap, the license types you need to understand, the metrics to watch, and how to put it all in place.
What Is Software Asset Management?
Software asset management is the practice of tracking the software an organization installs and uses against the licenses it has bought, across the software’s whole life from request to retirement. It keeps the organization within its license terms, removes spend on software nobody uses, and gives IT and security a list of what is running on every device.
SAM is one part of IT asset management. ITAM covers hardware, software and cloud; SAM focuses on software entitlements, installs and usage. For the difference in more detail, see ITAM vs SAM.
SAM has three goals:
- Compliance: every install is covered by a license, so a vendor audit finds nothing to charge for.
- Cost: you pay only for software that is used, and reassign licenses before buying new ones.
- Security: unapproved and outdated software is found and removed.
10 Software Asset Management Best Practices
These software asset management best practices are in the order most teams can apply them. The first four build the foundation; the rest keep it working.
| # | Best practice | What it prevents |
|---|---|---|
| 1 | Name an owner for SAM | Gaps nobody is accountable for |
| 2 | Write a short software policy | Unapproved purchases and installs |
| 3 | Build the inventory from discovery | Counting from memory or invoices |
| 4 | Normalize product names | One product counted as three |
| 5 | Record entitlements with evidence | Paying twice because proof is missing |
| 6 | Calculate the license position regularly | Surprises at audit or renewal |
| 7 | Tie licenses to people and devices | Licenses lost when people leave |
| 8 | Keep allowed and blocked lists | Risky or unlicensed software spreading |
| 9 | Prepare for vendor audits before they happen | Rushed, costly settlements |
| 10 | Retire and reclaim unused software | Renewing what nobody uses |
1. Name an owner for SAM
Software spend is spread across IT, finance, procurement and individual departments. Make one person or team responsible for the license position of each major publisher. They do not need to buy everything, but they need to know about everything that is bought.
2. Write a short software policy
A policy that fits on two pages gets read. It should say who can request and approve software, where it is bought, who may install it, which products are standard, and what happens when someone leaves. Train new staff on it as part of onboarding.
3. Build the inventory from discovery
The installed software list must come from the devices themselves, not from purchase records. Discovery agents on Windows, macOS and Linux machines report what is installed and which version. A network sweep alone usually cannot list installed software, so agents or device management data are needed. See IT asset discovery for the methods.
4. Normalize product names
Raw discovery data is messy. The same product appears under different publisher spellings, editions and version strings. Map each raw name to one catalog product, so counts are accurate and comparable with what you bought.
5. Record entitlements with evidence
For every purchase, record the product, the license metric, the quantity, the term and the agreement or order number, and keep the license certificate or contract with it. An auditor will ask for proof of purchase, and an invoice nobody can find is a license you pay for twice.
6. Calculate the license position regularly
The license position compares entitlements with installs (or users) for each product. Run it monthly for major publishers and before every renewal.
| Product | Metric | Owned | Installed | Position |
|---|---|---|---|---|
| Design suite | Named user | 40 | 46 | 6 short |
| PDF editor | Device | 300 | 212 | 88 unused |
| Database server | Site | 1 site | All installs at that site | Covered |
A shortfall needs a decision: buy more, or remove installs. A surplus is money to recover at the next renewal.
7. Tie licenses to people and devices
Per-user licenses follow people; per-device licenses follow machines. Record the custodian on every device and the named users on every user license. When someone leaves or changes role, the record shows exactly which licenses to reclaim.
8. Keep allowed and blocked lists
Mark each product as allowed, blocked or not yet reviewed. Blocked software found on a device should raise an exception for IT to remove. This cuts both license exposure and security risk.
9. Prepare for vendor audits before they happen
Treat each major publisher as if an audit letter arrived today. Keep the entitlement evidence, the latest license position and the list of devices behind any shortfall ready to export. Run your own internal audit at least once a year.
10. Retire and reclaim unused software
Before every renewal, check which licenses have not been used and which installs belong to devices that no longer check in. Uninstall, reassign or cancel. When retiring a product, back up any data, tell users and end the contract so the fees stop.
Software License Types You Need to Track
The license metric decides how compliance is counted, so record it on every entitlement.
| License metric | How it is counted | Watch out for |
|---|---|---|
| Per device | One license for each machine it is installed on | Virtual machines and reimaged devices |
| Per named user | One license for each person allowed to use it | Leavers who still hold a license |
| Concurrent | A maximum number of people using it at the same time | Needs usage data to prove peak use |
| Site | Unlimited installs at one location | Installs outside the site |
| Enterprise | Unlimited installs across the organization | Subsidiaries and contractors may be excluded |
Subscription software follows the same rules for the metric, but renews on a fixed date, so reclaiming unused seats before the renewal date matters most.
The Software Asset Management Process
- Request and approve. A user requests software; the owner checks for spare licenses before approving a purchase.
- Buy and record. Procurement buys, and the entitlement is recorded with its evidence.
- Deploy. IT installs and the device or user is linked to the license.
- Discover and reconcile. Discovery reports installs; the license position is recalculated.
- Optimize. Unused licenses are reassigned; shortfalls are fixed.
- Retire. Software is uninstalled, licenses are reclaimed and contracts are ended.
SAM Metrics to Track
- License position by product: owned vs installed, short or surplus.
- Installed but not entitled: installs with no license covering them.
- Entitled but not installed: licenses you pay for and no one uses.
- Blocked software installed: devices running software that is not allowed.
- Devices not checking in: machines whose software data is out of date.
SAM Best Practices by Organization Size
Small businesses
Start with the five or six publishers that cost the most. A simple inventory, a named owner and a yearly review before renewals deliver most of the value.
Mid-size companies
Add discovery agents on every computer, a normalized catalog and a monthly license position for major publishers. Tie licenses to custodians so offboarding reclaims them.
Large enterprises
Expect several license agreements per publisher, subsidiaries and regional purchasing. Centralize entitlement records with evidence, run internal audits on a schedule and treat audit readiness as a standing process.
How Asset Infinity Supports Software Asset Management
Asset Infinity’s software license management counts what you bought against what your devices report, inside the same register as your hardware.
- Installed software comes from discovery agents on Windows, macOS and Linux and from Microsoft Intune. See IT asset discovery.
- A catalog maps raw publisher and product names to one product.
- License metrics: device, user, concurrent, site and enterprise.
- Per-user licenses follow custodians, so assigning a laptop settles its license.
- Allowed, blocked or unreviewed status on every product, with blocked installs raised as exceptions.
- Evidence on file: each entitlement keeps its agreement number, term and certificate.
- Reports: software license position, installed not entitled, entitled not installed, blocked software installed and devices not checking in.
Concurrent seats are recorded with their quantity and term, but usage is not metered. Software and hardware share one IT asset management record, so a device’s custodian, contracts and installed software are on the same page.
Frequently Asked Questions
What is the main goal of software asset management?
To make sure every install is covered by a license, no money is spent on unused software, and IT knows what is running on every device.
How often should we check our software license position?
Monthly for your largest publishers, and always before a renewal or when a vendor audit letter arrives.
What is the difference between SAM and license management?
License management tracks entitlements and compliance. SAM is broader: it also covers requests, deployment, usage, security and retirement of software.
What should a software asset management policy include?
Who approves and buys software, who installs it, the standard and blocked products, how licenses are reclaimed from leavers, and how often the license position is reviewed.
Does SAM help with security?
Yes. The software inventory shows unapproved, blocked and outdated software, which are common ways into a network.