1. Overlooking the Total Cost of Ownership (TCO)
Many businesses focus solely on the initial cost of licenses without considering the Total Cost of Ownership (TCO), which includes ongoing expenses such as updates, support, and training. This oversight can lead to budget overruns. To avoid this, businesses should conduct a comprehensive cost analysis that includes all potential expenses over the license’s lifespan.
2. Ignoring Scalability and Flexibility
SMBs often underestimate the importance of scalability and flexibility in their technology licenses. As your business grows, your technology needs will change. Opting for licenses that do not accommodate growth or adapt to changing business needs can lead to costly upgrades or migrations. Seek out licenses that offer scalable options and flexibility to switch plans or features as needed.
3. Failing to Understand the Licensing Agreement
A common mistake is not fully understanding the terms and conditions of licensing agreements. This can result in non-compliance, unexpected restrictions, or additional charges. It’s crucial to thoroughly review and understand the licensing agreement or consult with a legal expert to ensure compliance and to clarify what is and isn’t allowed under the terms.
4. Neglecting Compliance and Audit Risks
Many businesses fail to keep track of their software licenses, which can lead to compliance issues and put them at risk during audits. Regularly auditing your software licenses and maintaining accurate records can help avoid legal penalties and fines associated with non-compliance.
5. Not Considering Open Source or Alternative Solutions
Overlooking open-source or alternative software solutions is a mistake that can lead to unnecessary spending. These options can offer comparable features at a lower cost or even for free. It’s worth exploring open-source software and alternative solutions before committing to more expensive proprietary licenses.
6. Underutilizing Licensed Features
Purchasing licenses with a wide array of features might seem like a good idea, but it can lead to wasted resources if those features are underutilised. Assess your business’s specific needs and choose licenses that match those needs without paying for unnecessary extras. Regular training for staff on the full capabilities of your software can also help maximise your investment.
7. Overlooking User Experience and Support
Selecting technology based solely on its capabilities without considering the user experience and support can hinder productivity and lead to frustration. Choose products that are user-friendly and come with reliable customer support. This ensures your team can effectively use the technology and receive help when needed.
8. Making Decisions Without IT Consultation
Finally, a critical mistake is making licensing decisions without consulting IT professionals. IT experts can provide valuable insights into how a product fits within your existing technology infrastructure, its compatibility with other tools, and its long-term viability for your business.
Choosing and managing technology product licenses requires careful consideration and strategic planning. By avoiding these eight common mistakes, SMBs and IT professionals can ensure they choose the most appropriate licenses for their needs, stay compliant, and optimise their technology investments. Remember, the goal is to empower your business with technology, not to be encumbered by it. Regular reviews, consultations with IT professionals, and keeping abreast of new software developments can help your business navigate the complexities of technology licensing successfully.
