Microsoft Software Licensing Audits – Are you ready?

Software audits are on the rise, ensuring that installed software = licensed software. So upon receiving an email from Microsoft that starts,

"Microsoft would like to work with your organization on a review of your Microsoft licenses.  This review process will be undertaken with all customers over a period of time and is intended to help you control your software assets."

you don't want to be surprised or go into shock.

It is a good idea to conduct an internal audit of your software to make sure you are using your software appropriately and have all of your license keys.  That way when the email arrives you will know you are ready.

Why you?

Up until a few years ago it was mainly large companies with 100's and 1000's of users that had to worry, but recently we've noticed smaller business' have received notificiations from Microsoft. These software audits are inquiries to ensure that every copy of software used is actually licensed. 

The process

How it begins. You usually receive an email addressed to you and your company requesting a review of your licenses. Attached to the email is a pdf of FAQ's and an Excel spreadsheet. You are asked to complete the spreadsheet detailing all the Microsoft software that is used by your company and return to Microsoft by a specific date. 

Your initial reaction may be disbelief followed by emotions of fear and anger, but if you have ever been through an audit, than you will know what a blessing it is to be organized and have all of your ducks in a row. You may wish to engage your IT Partner to assist you through or even manage the process on your behalf. 

Finding all of your license keys can be a problem.

Microsoft will ask for the serial numbers of all Microsoft products, 30 PC's = 30 serial numbers for Windows and 30 serial numbers for Office in addition to other software in use including Small Business Server, Microsoft Exchange, SQL Server, etc. All of those paper certificates need to be located because No certificate = No license.  There is always a record of license whether it is on a piece of cardboard, pdf to print out or your licensing portal. 

Workstations purchased with Windows and Office pre installed have a certificate for Windows stuck to each PC and come with paper certificates to confirm the MS Office license.  There is always a record, you just need to know where to find it, because a lack of details can make audits stressful and expensive.

Next problem is time. It is a lengthy process to understand, gather and manage all of the information Microsoft wants.   It is a lengthy process of communication ensuring your company is in compliance. If you are found to be out of compliance, you are required to buy the right licenses to make your company compliant and perhaps pay retroactive software fees. You can not just stop using Microsoft products that are not licensed, because you have the software installed and have been using the software means you have to pay.

How can they do this?

What gives the software publishing company the entitlement to audit, is within the sign off terms and conditions during the installation of the software. There is a section in there outlining and verifiing compliance that gives the license issuer the right to engage with a third party auditor to review your licenses under the terms of their agreement with you that you agreed too when the software was installed on your computer(s).

Asset tracking can help

Depending on your relationship with your IT partner, you may already have an in house management solution that includes asset tracking and appropriate controls incorporated into your business to prevent the business risks of uncontrolled softare installation resulting in unplanned liabilities.  This is a tool which makes it much easier to ensure you comply with license requirements from all software vendors.

If your business uses software published by Microsoft, Adobe, Autodesk, Oracle and SAP you may be at risk for a software audit... and nothing says "fun" like the word audit.  Having the steps and processes in place ahead of time makes it much less of a problem and avoids surprise costs and time expenditures.

   

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