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Why Do Software Vendors Audit Customers?
And what to do when you receive a request



  Presented by:


     License Dashboard
Audits are on the up!

According to Gartner, your organization now has a

65% chance of being audited by at least one
software vendor this year. Software audits are
disruptive, slow and expensive – the last thing your
organization wants...
And the cost is big

With the average software audit tying-up resources
for at least three months and costing as much as

$500,000 / £315,000, understanding what
steps can be taken to avoid or minimize the
disruption caused by an audit could save your
organization a small fortune!
Are you ready?
To help you minimize the risks surrounding software audits, License
Dashboard has published this presentation along with a free guide to
help you understand:

    • Why software audits happen
    • How software vendors decide who to target
    • What to do to make your organization a less attractive target
    • How to respond to a software audit request
    • What to do to ensure audits do not become a regular occurrence

This presentation will give a brief insight into these points, but for a
comprehensive guide, download our free white paper.
Why do vendors audit?

  70%
  60%
  50%
  40%
  30%
  20%
  10%
   0%




    Source: E&Y, Compliance Without Tears, 2011
Audit Triggers

  80%
  70%
  60%
  50%
  40%
  30%
  20%
  10%
   0%
          Inconsistency in History of poor        Customer size    Mergers &     Global footprint
             purchasing     compliance                            Acquisitions



    Source: E&Y, Compliance Without Tears, 2011
The risks of an audit
 FOUR key areas of risk
     Financial – addressing shortfall costs money, unplanned expenditure is worst!

     Productivity – audits can divert resources for months on end

     Legal – risk of ending up court, requiring legal representation

     Reputational – hard to quantify, but equally dangerous



 Case Study:

     US Gartner Client – received audit request; no SAM tools or practices in place

     Audit process took six months; internal costs $500,000

     True-up cost circa $200,000
Best practices to avoid audit
 Use volume licensing agreements where appropriate
 Improve record-keeping and centralize contracts
 Define and document policies on software – who gets what
 Define and deploy standard software builds
 Deploy inventory solution to accurate monitor deployments
 Record licenses centrally and reconcile against usage
     Prepare ELP statements on a regular basis

 Negotiate audit clauses in license contracts – 60 days written notice
 DEPLOY A LICENSE MANAGEMENT SOLUTION!
www.licensedashboard.com

 Download our free guide

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Why Do Software Vendors Audit Customers?

  • 1. Why Do Software Vendors Audit Customers? And what to do when you receive a request Presented by: License Dashboard
  • 2. Audits are on the up! According to Gartner, your organization now has a 65% chance of being audited by at least one software vendor this year. Software audits are disruptive, slow and expensive – the last thing your organization wants...
  • 3. And the cost is big With the average software audit tying-up resources for at least three months and costing as much as $500,000 / £315,000, understanding what steps can be taken to avoid or minimize the disruption caused by an audit could save your organization a small fortune!
  • 4. Are you ready? To help you minimize the risks surrounding software audits, License Dashboard has published this presentation along with a free guide to help you understand: • Why software audits happen • How software vendors decide who to target • What to do to make your organization a less attractive target • How to respond to a software audit request • What to do to ensure audits do not become a regular occurrence This presentation will give a brief insight into these points, but for a comprehensive guide, download our free white paper.
  • 5. Why do vendors audit? 70% 60% 50% 40% 30% 20% 10% 0% Source: E&Y, Compliance Without Tears, 2011
  • 6. Audit Triggers 80% 70% 60% 50% 40% 30% 20% 10% 0% Inconsistency in History of poor Customer size Mergers & Global footprint purchasing compliance Acquisitions Source: E&Y, Compliance Without Tears, 2011
  • 7. The risks of an audit FOUR key areas of risk Financial – addressing shortfall costs money, unplanned expenditure is worst! Productivity – audits can divert resources for months on end Legal – risk of ending up court, requiring legal representation Reputational – hard to quantify, but equally dangerous Case Study: US Gartner Client – received audit request; no SAM tools or practices in place Audit process took six months; internal costs $500,000 True-up cost circa $200,000
  • 8. Best practices to avoid audit Use volume licensing agreements where appropriate Improve record-keeping and centralize contracts Define and document policies on software – who gets what Define and deploy standard software builds Deploy inventory solution to accurate monitor deployments Record licenses centrally and reconcile against usage Prepare ELP statements on a regular basis Negotiate audit clauses in license contracts – 60 days written notice DEPLOY A LICENSE MANAGEMENT SOLUTION!