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Software licensing: what you need to know before you install

29/04/2025 minute read Dave Wain

With a constant stream of new software releases and installations, it's easy to get swept up in downloading the newest tools without too much thought. However, before you click that "install" button, it's essential to take a step back and think about the licensing terms and conditions. Failing to do so can lead to security risks, legal issues, and inefficiencies that can have far-reaching consequences.

The risks of impulsive software installation

Installing software without proper consideration of licensing terms can lead to a range of issues. This can happen when a new tool or application is needed quickly, and the focus is on getting it up and running as soon as possible, rather than taking the time to consider the security impact and the licensing requirements. For example:

  • You may end up with software that's not properly licensed, leading to costly fines and penalties.
  • You may inadvertently expose your organisation to security risks, such as data breaches or malware.
  • You may struggle to manage and maintain the software, leading to inefficiencies and wasted resources.

The importance of thinking before you install

Taking the time to research and understand the software's licensing terms, can help you avoid costly mistakes, ensure compliance, and reduce the risk of security breaches. By asking yourself these key questions, you can make informed decisions and ensure a smooth and successful software installation process:

  1. Have you checked for any known security vulnerabilities in the software that could compromise your environment? Are there any security patches or updates that need to be applied before installation?
  2. Has the software been approved for installation by your organisation's IT department or security team?
  3. Are there any costs associated with the software? If so, ensure that a license is allocated before installation to avoid any potential issues or penalties.
  4. What type of license is required for the software? For example, if it's user-based, consider the total number of users who may have access to the software, even if they don't actively use it.

Engaging managed IT support services can help answer these questions and provide oversight during the software deployment process.

Understanding license types

Different types of licenses can have a significant impact on your organisation's operations. Here’s a breakdown of the most common types to help you navigate your options:

User-based licensing

This type of license is based on the number of users who will be accessing the software. Licensing models may vary, but some require a licence for each user who has been assigned a login or account, while others are based on actual usage data, such as log-in information or application metrics. Even if a user doesn't actively use the application, they may still require a licence, which can lead to significant costs for large organisations with many users.

Device-based licensing

This type of license is based on the number of devices that will be using the software. The cost of this type of license is typically calculated per device, so it's essential to ensure that you have a licence for each device that will be accessing the software.

Core-based licensing

This type of license is based on the number of CPU cores in the server, per socket. The cost of this type of license is typically multiplied by the number of sockets, so it's essential to consider both the number of cores and sockets when determining the total licence cost.

Edition-based licensing

This type of license is based on the specific edition of the software being installed. Even if you're only adding a subset of components or features from an earlier edition, you may still be required to purchase a licence for the full edition, which can result in significant additional costs.

Managed IT service providers offer tools and expertise to help navigate these license models efficiently.   

The benefits of a thoughtful approach

By taking a thoughtful and informed approach to software installation, you can avoid many of the risks and problems associated with impulsive installation. You'll be able to:

  • Reduce the risk of security breaches and data loss.
  • Ensure compliance with licensing terms and conditions.
  • Improve the efficiency and effectiveness of your software deployments.
  • Make informed decisions about software purchases and investments.

Need additional support?

When it comes to software installations, pause before you proceed. Thoughtful, informed decisions reduce risks, prevent inefficiencies, and ensure compliance. By taking this approach, you can tailor decisions that benefit your organisation in the long term, leading to increased productivity, reduced costs, and improved overall security and performance. Whether you work with IT managed service providers or handle such tasks internally, a calculated approach will always lead to better outcomes.

If you’d like expert assistance or need tailored advice on managing software installations, feel free to contact us.