How software licence compliance unlocks operational resilience

What if your software was the weak link that cyber criminals exploit to breach your organisation’s defences?

Half of UK businesses experienced a cyber breach or attack in 2024. Outdated software can leave you vulnerable to cyber threats, so it is essential to close these gaps before cyber criminals enter through them.

A business is only as efficient and protected as the software it relies on. However, if your software licences are not effectively managed, they can end up hindering, rather than helping, your business.

Software can pose a significant threat to your business; failing to comply with software licence agreements carries substantial legal penalties and security vulnerabilities, as well as inefficient processes, reputational damage, disruptions to business continuity, and financial losses. Here is how actively managing the compliance of your software licences boosts your organisation’s operational resilience.

You minimise legal and financial risks

One of the main reasons companies take a proactive approach to maintaining software licence compliance is to reduce the risk of legal disputes and fines. Software vendors conduct regular audits, and any discrepancies in licence usage can result in hefty fines or legal action. Companies that do not manage their licenses properly may face:

• Unexpected financial burdens due to fines
• Legal action from software vendors
• Damage to your reputation and loss of customer trust if knowledge of this enters the public domain

Software licence compliance ensures operational resilience as your business is not at risk from the reputational damage and inflated costs associated with falling afoul of the terms of your software licence agreement.

You promote business continuity

If you are found to be non-compliant with your software terms, this can lead to sudden software deactivation, disrupting essential processes. Licence expirations, revoked access, or vendor-imposed restrictions due to non-compliance can cause:

• Downtime and reduced productivity
• Interruptions to workflows, leading to reduced standards of service
• Increased recovery costs and delays

A well-structured software asset management strategy means you can track and renew licenses on time, ensuring you have uninterrupted assets to your essential tools.

You strengthen your cyber defences

Unauthorised or outdated software usage increases the risks of cyber-attacks and data breaches. Non-compliant software may:

• Lack security updates, making your systems vulnerable to cyberattacks
• Open doors to malware and data breaches
• Lead to data compliance violations with industry regulations such as GDPR and DORA

By adhering to licence agreements and ensuring software is up to date, businesses can enhance their cybersecurity posture and reduce cyber threats.

You optimise your IT operations and costs

Non-compliance often leads to over-licensing or under-licensing, both of which waste your budgets. Over-licensing is common among organisations who are concerned about being fined and lack the expertise or time to sort through their licences; 76% of companies over-license their software to avoid penalties from audits. By understanding the compliance terms of your software, you can:

• Avoid paying for unused software
• Reduce unnecessary licence costs
• Allocate resources effectively
• Build better relationships with vendors

A proactive compliance approach ensures you only pay for the software you actually use, while maximising the value of your IT investments.

How to make sure your software licences are compliant

If you want to ensure your organisation maintains operational resilience through its software, software licence compliance is critical. This can be costly and time-consuming for internal teams to manage alongside business as usual. This is why we specialise in Managed Licence Compliance as a Service; this means that we:

• Leverage automation to seamlessly manage your software estate and save costs on manually managing your software tasks
• Explore your licence agreements, ensuring your teams have an enhanced understanding of them
• Identify areas where you can streamline processes and reduce software costs

Investing in your software licence compliance today ensures long-term business stability and protects your reputation. Ensure your organisation is not derailed by software licence issues and maintains a competitive edge in the digital economy with our expert Managed Licence Compliance as a Service.