Software Asset Management
What to check before a software renewal
A renewal is the one moment each year when a subscription can be changed cheaply. Most pass without anyone looking.
· 4 min read
A subscription renewal is the only point in the year when the seat count, edition and term can be changed without a prorated adjustment or a commercial conversation. It is a genuine decision point, and it is routinely treated as an administrative one.
The checks worth making
Seat count against current headcount. Not last year's count carried forward. The count you need on the renewal date, based on who is employed now and who is joining in the next quarter.
Assignment against usage. Which assigned seats have not been signed into in ninety days. Those are either leavers who were never reclaimed, or people who genuinely do not use the product.
Edition against requirement. Which users are on a higher tier than their role uses. This is the least visible source of overspend because nothing is obviously wrong — the licences are assigned and being used, just at a tier above what is needed.
Term against stability. If your headcount is stable, a multi-year term is usually cheaper per year and protects against price increases. If it is not, the annual term's flexibility is worth the premium.
Overlap with other tools. Whether another subscription in the organisation now covers this need. Departmental purchases made independently converge more often than anyone expects.
The timing problem
All of this requires the renewal to be visible far enough ahead to act on. A renewal notice that arrives two weeks before the date leaves no time to reclaim seats, agree a reduced count internally and get a revised quotation.
The practical fix is a renewal calendar with a review reminder set sixty to ninety days ahead of each date. That is enough time to do the checks above and act on what they find.
Without it, renewals happen at last year's count by default — which is a decision, just not one anybody made.