Sherlocked Security – Software License Compliance Audits
Ensure Compliance and Mitigate Risk with Proactive Software License Management
1. Statement of Work (SOW)
Service Name: Software License Compliance Audits
Client Type: Enterprises, SMEs, Public Sector, Technology Firms, Educational Institutions
Service Model: One-Time Audit & Ongoing Monitoring
Compliance Alignment: Software Vendor Licensing Agreements, ISO/IEC 19770, SOX, GDPR, ITIL
Software License Compliance Audit Covers:
- Comprehensive review of software usage and licensing across the organization
- Assessment of compliance with vendor-specific software agreements and licensing terms
- Identification of unlicensed software and unauthorized usage
- Evaluation of software installation across devices and systems
- Review of open-source software compliance and third-party components
- Validation of license tracking and software asset management processes
- Recommendations for rectifying license gaps, reducing software spend, and ensuring compliance
- Documentation for audit trails and evidence to support vendor audits
- Ongoing monitoring of software usage and renewals
2. Our Approach
[Inventory Collection] → [License Usage Analysis] → [Compliance Assessment] → [Audit Report Generation] → [Recommendations & Remediation Plan] → [Ongoing Monitoring]
3. Methodology
- Inventory Collection:
- Gather details of all software installed across the organization, including licenses, versions, and installation locations.
- Utilize asset management tools to compile an accurate inventory of software across physical and virtual environments.
- Include cloud-based and third-party software in the inventory assessment.
- License Usage Analysis:
- Assess actual software usage against the terms of licensing agreements, including user counts, devices, and server instances.
- Compare the number of licenses purchased versus the number of software installations and active users.
- Identify any software that is over-licensed (purchasing more licenses than needed) or under-licensed (using more licenses than acquired).
- Compliance Assessment:
- Cross-check software usage with vendor agreements to identify any non-compliance issues, such as using unlicensed or unsupported versions.
- Evaluate software inventory management practices to ensure proper tracking and documentation for compliance.
- Review licensing restrictions, such as geographic, device, or user-specific limits.
- Audit Report Generation:
- Generate a comprehensive audit report documenting findings, including software compliance status, risks, and violations.
- Include detailed recommendations for rectifying non-compliance, including purchasing additional licenses or deactivating unused installations.
- Recommendations & Remediation Plan:
- Provide actionable recommendations to improve license management, including tools, processes, and best practices for software asset management (SAM).
- Develop a remediation plan to address license shortfalls or violations and suggest cost optimization strategies.
- Ongoing Monitoring:
- Set up continuous monitoring to track software usage and ensure compliance with ongoing license requirements.
- Provide periodic check-ins to verify compliance, especially during software renewals or updates.
4. Deliverables to the Client
- Software License Compliance Audit Report: A comprehensive document detailing compliance status, risks, and identified violations for each software title.
- License Usage Analysis Report: A summary report comparing actual software usage to purchased licenses.
- Non-Compliance Identification: A clear identification of under-licensed, over-licensed, or unlicensed software and its associated risks.
- Remediation Recommendations: A detailed remediation plan with specific actions, such as purchasing additional licenses, removing unauthorized software, or updating asset management practices.
- Audit Trail Documentation: Documentation that supports the audit findings, including license agreements, usage reports, and vendor communications.
- Ongoing Compliance Monitoring Plan: A plan for setting up continuous software license tracking and compliance monitoring.
5. What We Need from You (Client Requirements)
- Current Software Inventory: Access to current software inventory lists, including both on-premise and cloud-based systems.
- Software License Agreements: Copies of software licensing agreements for all major software products in use.
- Asset Management Systems: Access to tools or systems used for software asset management and license tracking.
- Vendor Communication: Any existing communications or agreements with software vendors related to licenses, audits, or renewals.
- Stakeholder Interviews: Availability of IT, procurement, and finance teams to discuss software usage patterns, budgeting, and procurement practices.
6. Tools & Technology Stack
- Software Asset Management (SAM):
- Flexera, Snow Software, ServiceNow SAM, Lansweeper
- License Compliance:
- Voxware, Certero, Aspera
- Audit & Reporting:
- Power BI, Excel, Tableau (for reporting and data visualization)
- Cloud License Management:
- AWS License Manager, Azure Cost Management, Google Cloud License Management
7. Engagement Lifecycle
- Kickoff & Scoping: Initial meeting to define the scope of the audit, identify key software, and agree on deliverables.
- Inventory Collection & Analysis: Gather software inventory data from asset management tools, procurement records, and installation logs.
- Compliance Review: Cross-reference actual usage against licensing agreements and review vendor terms for compliance.
- Audit Report Generation: Create detailed reports highlighting compliance status, risks, and gaps.
- Remediation Plan: Provide a set of actions to remedy non-compliance issues and optimize license usage.
- Ongoing Monitoring Setup: Establish an ongoing process for monitoring license compliance and usage.
- Final Review & Recommendations: Provide a final report with recommendations for improving software license management and preventing future non-compliance.
8. Why Sherlocked Security?
| Feature | Sherlocked Advantage |
|---|---|
| Thorough License Tracking | Complete visibility into license usage and compliance for all software. |
| Vendor-Agnostic Approach | Expertise in managing licenses across diverse vendors and platforms. |
| Comprehensive Audit Reports | Detailed reports outlining risks, violations, and remediation actions. |
| Optimization Strategies | Actionable recommendations for reducing software spend and improving license management. |
| Ongoing Monitoring & Support | Continuous tracking of software licenses and compliance post-audit. |
9. Real-World Case Studies
Large Technology Firm – Software License Optimization
Client: A multinational technology firm with complex software licensing needs.
Findings: The client had a mix of over-licensed and under-licensed software, leading to inefficiencies and compliance risks.
Outcome: We identified significant license over-purchasing, which led to a cost-saving recommendation of 15% through optimization. We also rectified under-licensed software, reducing the risk of audit fines.
Healthcare Provider – Ensuring Compliance with Medical Software
Client: A large healthcare provider using specialized medical software.
Findings: The client was using outdated versions of software without the necessary licenses for extended functionality.
Outcome: We identified software versioning issues and ensured proper licensing for updates. The provider was able to avoid non-compliance penalties and secure the latest versions of critical software.
10. SOP – Standard Operating Procedure
- Initial Assessment: Define audit objectives, gather software inventory, and review software license agreements.
- Inventory & Usage Analysis: Conduct a detailed analysis of software installations and license usage.
- Compliance Verification: Compare actual software usage against licensing terms to identify violations.
- Reporting & Recommendations: Generate reports on compliance status, risks, and remediation actions.
- Remediation & Optimization: Suggest corrective actions and license optimization strategies.
- Continuous Monitoring: Set up systems for ongoing software license tracking and compliance verification.
11. Software License Compliance Readiness Checklist
1. Pre-Audit Preparation
- [ ] Up-to-date software inventory lists
- [ ] Copies of software licensing agreements
- [ ] Access to asset management and procurement systems
- [ ] Historical license usage data (if available)
2. During Engagement
- [ ] Collect software inventory data from all systems and environments
- [ ] Verify compliance with vendor terms and licensing restrictions
- [ ] Identify potential unlicensed or unauthorized software
3. Post-Audit Actions
- [ ] Deliver detailed compliance audit report
- [ ] Implement corrective actions to address non-compliance
- [ ] Establish continuous monitoring of software licenses and renewals