Hidden complexities. Unexpected costs.
"If you're going to fine us $4.5m, we're done. We'll just rip the software out."
That was one CEO's exasperated response when their energy company was confronted with an unexpected software audit bill. When the company initially received the audit letter, they'd expected it would be business as usual.
After all, they'd successfully managed audits from major, tier 1 software publishers. They also had what they considered to be a mature SAM/ITAM programme.
This time it turned out to be very different as the team discovered a piece of software— installed on clustered servers—required twice as many licenses as they'd originally thought, with each of their 300 users suddenly needing two licences instead of one. Worse still, the publisher demanded seven years of back-dated maintenance fees. What started as a "minor" compliance issue escalated into a Board-level crisis.
Their story illustrates what I see as a growing trend. While most IT leaders have robust processes for managing major publishers like Microsoft and Oracle, it's often the less common vendors that present the most complex challenges.
| Challenges of ‘weird’ software |
| Unclear licensing metrics |
Difficult to track and measure usage accurately, especially with staff changes and role transitions |
| Ambiguous language |
Essential terms like 'user', 'device', and 'seat' become open to costly misinterpretation |
| Hidden clauses |
Unexpected audit requirements and penalties that surface only when publishers initiate compliance checks |
| Cloud migration issues |
On-prem licences often can't transfer to cloud environments, creating unexpected costs and delays |
| Poor record-keeping |
Difficult to prove compliance or optimise spend when software is purchased outside standard processes |
| Security risks |
One-off purchases often lack ongoing security patches and updates, creating vulnerabilities |
| Vendor lock-in |
Migration to new solutions becomes increasingly expensive as dependency on specific tools grows |
These challenges and their associated overheads are insidious. When publishers calculate compliance gaps, they frequently include penalties, back maintenance fees, and mandatory upgrades. Even development tools can create significant headaches. One organisation built an internal application using Visual Studio, then published it company-wide—not realising this meant every user needed a $5,000 licence.
The problems compound when business units purchase software independently. A tool that seems inexpensive at first can suddenly require enterprise-wide licensing, creating unexpected costs and compliance risks that impact the entire organisation.
