Every time your organisation installs or subscribes to software, it accepts a licence agreement that defines who may use it, where it may be installed and how it may be deployed. One agreement is easy to follow. Hundreds of them, spread across departments, laptops, servers, phones and cloud subscriptions, are not.
Without active oversight, two things happen at once: you pay for licences nobody uses, and you run software you are not properly licensed for. Software license management (or licence management, as it is usually spelt in Ireland) closes both gaps. This guide gives you a practical audit checklist, then looks at the Microsoft 365 details that most often catch Irish businesses out.
Why licences drift out of control
- Joiners and leavers: new starters get licences quickly; leavers’ licences are often never reclaimed.
- Departmental buying: teams sign up for online tools on a company card, outside IT’s view.
- Automatic renewals: subscriptions renew at the same quantity year after year, whether or not the seats are used.
- Over-specified plans: everyone gets the top tier when many roles need far less.
- Mixed environments: the same product may be licensed per user in the cloud and per device or per server on premises.
The main licensing models
| Model | How it is counted | What to watch |
|---|---|---|
| User licences | Per named person, often across several devices | Leavers and shared accounts |
| Device licences | Per machine, whoever uses it | Replaced and re-imaged machines |
| Subscriptions | Per seat, per month or year | Renewal dates and minimum terms |
| Server and core-based | Per server, processor or core | Virtual machines and hardware upgrades |
| Perpetual with maintenance | One-off purchase plus support renewals | Which versions you are entitled to run |
A software licence audit checklist
Work through these steps in order. The first audit takes the longest; after that, keeping the position current is far easier.
1. Gather every agreement
Collect contracts, order confirmations, reseller invoices and online subscription records. For each one, note the product, edition, quantity, licensing model, term and renewal date. Check finance and expense records for tools bought on company cards.
2. Find out what is actually deployed
Use your device management and inventory tools to list installed software on laptops, desktops and servers. For cloud services, export the list of assigned licences and, where available, sign-in and usage reports.
3. Compare purchased rights with real use
Match what you own against what is installed, assigned and used. This is the heart of the audit: the gap between the two lists is where both the waste and the risk live.
4. Identify waste
- Licences assigned to people who have left.
- Unassigned seats you are still paying for.
- Duplicate tools doing the same job in different teams.
- Premium plans for users who only need the basics.
5. Identify gaps
- Software installed without a matching licence.
- The wrong edition for the features in use.
- Contractors or temporary staff using someone else’s account.
- Virtual servers that changed how a product should be counted.
6. Correct and document
Remove or reassign unused licences, buy what is missing, and record the proof of entitlement for each product in one place. If a vendor ever asks to audit your usage under the licence terms, this record is what you will rely on.
7. Give it an owner and a rhythm
Assign someone to own licensing, tie licence changes into your joiner and leaver process, and review the position regularly, especially ahead of each renewal date.
Where Microsoft 365 spend leaks
Microsoft 365 is the largest software subscription for many Irish businesses, and a few licensing rules make a real difference to the bill.
The 7-day window for reducing licences
Under Microsoft’s current commerce rules for subscriptions bought through a partner, you can reduce the number of licences on a subscription only within seven days of buying it or of it renewing into a new term. After that window closes, the quantity is locked until the next renewal. Annual subscriptions therefore need a licence review before each renewal date, not after it.
Monthly versus annual terms
Annual-term subscriptions cost less but lock the seat count for the year. Monthly-term subscriptions cost more but can be reduced at each monthly renewal. A mix often works best: a stable core on annual terms and seasonal or uncertain headcount on monthly.
Leavers’ mailboxes
When someone leaves, their mailbox can often be converted to a shared mailbox. A shared mailbox can hold up to 50 GB without a licence of its own, so the user’s licence can be removed or reused. Larger shared mailboxes, archiving and litigation hold do require a licence, so check before converting.
Matching plans to roles
Not every user needs the same plan. Frontline or light users may need far less than finance, management or staff handling sensitive data. Review who has which plan, and why, at least once a year.
Paying twice for security tools
Some Microsoft 365 plans include security and device management features that businesses also buy separately from other vendors. Before renewing a standalone tool, check whether a plan you already own covers the same need.
Frequently asked questions
How often should we review licences?
At least once a year in full, and before every renewal date for the subscriptions that matter most. Connect licence changes to your joiner and leaver process so the position stays accurate in between.
Can a software vendor really audit us?
Many licence agreements give the vendor the right to verify your usage. A clean record of what you own and where it is deployed turns that from a stressful exercise into a routine one.
Is licence management only about saving money?
No. It also reduces compliance risk, helps you choose the right software for how people actually work, and gives you a clearer view of what is installed across the business, which supports security too.
Get a clearer view of your software
Everything IT’s software licence management service reviews the software, subscriptions and agreements you already have, compares them with real users, devices and cloud deployments, and corrects the gaps. We then keep the position under review as staff, devices and business requirements change.
Talk to us about software licence management →