Whether through Software Asset Management (SAM) or FinOps, effective management of software licenses is essential for maintaining compliance, reducing costs, and streamlining operations. With all the new and exciting features available in the cloud, licensing can often be overlooked. In one of our recent blogs, we explored How to leverage Microsoft licenses with BYOL on AWS, demonstrating how you can transfer your existing licenses to the cloud. We also pointed out that the biggest risk in this process is non-compliance.

Amazon Web Services (AWS) License Manager emerges as a critical tool in this context, facilitating efficient Software Asset Management (SAM) and enhancing FinOps practices. This article dives into the functionalities, benefits, and best practices associated with AWS License Manager, focusing on its role in SAM and FinOps.

What is AWS License Manager?

AWS License Manager is a service that enables organizations to manage their software licenses across AWS and on-premises environments. It helps in tracking and controlling software licenses, ensuring compliance, and optimizing license usage, which can lead to significant cost savings.

The need for a solution like AWS License Manager has grown with the increased adoption of cloud computing. As organizations migrate to the cloud, they often bring along their existing software licenses. Managing these licenses in a hybrid environment (cloud and on-premises) can be challenging due to the complexity of different licensing models and the need for compliance across various jurisdictions.

AWS License Manager provides a centralized solution for managing licenses, making it easier to track, manage, and report on software usage. It supports a wide range of licensing models, including bring-your-own-license (BYOL), subscription-based licenses, and more.

Key Features of AWS License Manager:

AWS License Manager makes it easier to manage software licenses across your organization. It offers several useful features that help you stay compliant, use licenses efficiently, and keep better control of your software assets. Here are some key features that make AWS License Manager a valuable tool for managing licenses effectively:

• Centralized License Management: AWS License Manager offers a centralized platform for managing software licenses, eliminating the need for multiple tools and spreadsheets. This centralization simplifies tracking and compliance, providing a single source of truth for license entitlements and usage.
• Automated License Tracking: The service automates the tracking of software usage, helping organizations maintain compliance with licensing agreements. By continuously monitoring license usage, AWS License Manager reduces the risk of non-compliance and potential penalties.
• Integration with AWS Services: AWS License Manager seamlessly integrates with other AWS services. This integration enhances visibility and control over software assets across multiple accounts and environments.
• Custom License Rules: Organizations can define custom license rules tailored to their specific licensing agreements. These rules help ensure that software is used in accordance with the terms and conditions of the licenses, preventing overuse or misuse.
• License Consumption Reports: Detailed reports on license consumption provide insights into software usage patterns. These reports aid in optimizing license allocation and identifying opportunities for cost savings.

The Role of AWS License Manager in Software Asset Management

Software Asset Management (SAM) is a set of practices aimed at managing and optimizing the purchase, deployment, maintenance, utilization, and disposal of software applications within an organization. AWS License Manager plays a crucial role in enhancing SAM with AWS environments by providing the following capabilities:

• Visibility and Transparency: AWS License Manager offers comprehensive visibility into software assets across the organization. This transparency enables better decision-making regarding software procurement, deployment, and retirement.
• Compliance Management: Ensuring compliance with software licensing agreements is a significant aspect of SAM. AWS License Manager’s automated tracking and custom license rules help organizations adhere to licensing terms, reducing the risk of non-compliance and associated penalties.
• Cost Optimization: By providing detailed insights into license usage, AWS License Manager helps organizations identify underutilized or unused licenses. This information is valuable for optimizing software spend, negotiating better licensing agreements, and reallocating licenses where needed.
• Streamlined Audits: Preparing for software audits can be a challenging task. AWS License Manager simplifies this process by maintaining accurate records of license entitlements and usage, making it easier to demonstrate compliance during audits.

To maximize the benefits of AWS License Manager in Software Asset Management (SAM), organizations should adopt several best practices. First, it is important to regularly review license usage to identify any discrepancies or underutilized licenses, ensuring software assets are used efficiently and avoiding unnecessary costs. Clear policies and procedures for software procurement, deployment, and usage should be defined and communicated to all stakeholders to ensure consistent adherence. Leveraging AWS License Manager’s custom license rules is crucial for enforcing compliance with specific licensing agreements, and these rules should be updated regularly to reflect any changes. Additionally, integrating AWS License Manager with existing SAM tools can enhance visibility and control over software assets, providing a more comprehensive view of license management. For further insights into SAM tooling, you can read our blog about the benefits of SAM Tooling.

Supporting FinOps with AWS License manager:

FinOps is an operational framework and cultural practice which maximizes the business value of cloud, enables timely data-driven decision making, and creates financial accountability through collaboration between engineering, finance, and business teams. Here is how AWS License Manager could contribute to FinOps:

• Cost Transparency: AWS License Manager offers detailed reports on software license usage, providing transparency into where and how licenses are being utilized. This visibility helps FinOps teams understand software-related spending and identify opportunities for cost optimization.
• Optimized License Allocation: By tracking license consumption, AWS License Manager enables organizations to allocate licenses more efficiently. FinOps teams can use this information to ensure that licenses are assigned to the right users and applications, avoiding over-provisioning, and reducing waste.

In our latest blog we wrote about how persona-based licensing can optimize the licensing costs . A great article to delve deeper into License Allocation

• Budgeting and Forecasting: Accurate data on license usage is essential for budgeting and forecasting software-related expenses. AWS License Manager provides the necessary insights to project future license needs and costs, aiding in more accurate financial planning.
• Negotiating Better Deals: Detailed insights into software usage patterns can be leveraged during vendor negotiations. FinOps teams can use this data to negotiate more favorable licensing agreements, ensuring that the organization gets the best value for its software investments.

To effectively integrate AWS License Manager into FinOps practices, organizations should adopt a few key best practices. Start by establishing clear communication channels to foster collaboration between IT, finance, and operations teams, ensuring that everyone is aligned on software usage, costs, and optimization strategies. Regularly monitoring license usage is crucial, as it helps track consumption and identify any anomalies, maintaining control over software spending. Utilizing the detailed reports generated by AWS License Manager can aid in making informed decisions about software procurement, deployment, and retirement; these reports should be reviewed regularly to spot trends and optimization opportunities. Additionally, aligning license management practices with broader business goals ensures that software investments are prioritized to deliver the most value to the organization.

Pricing

The use of AWS License Manager falls under the Free Tier. Organizations can track an unlimited number of licenses at no additional cost. However, please remember that any related applications or services used may incur additional charges. For example, generating standard reports and storing them in an S3 bucket will incur storage costs.

If you want to know more about choosing the best storage option for this solution? Read our blog about Demystifying aws s3cost

Conclusion

AWS License Manager stands out as a powerful tool for enhancing Software Asset Management and supporting FinOps practices. By providing centralized license management, automated tracking, and detailed reporting, AWS License Manager helps organizations maintain compliance, optimize software spend, and drive financial efficiency. Adopting best practices for SAM and integrating AWS License Manager into FinOps workflows can significantly enhance an organization’s ability to manage software assets effectively and maximize the value gained from software investments. As the digital landscape continues to evolve, leveraging tools like AWS License Manager will be essential for organizations aiming to stay competitive and financially efficient.

Want to know more about AWS and/or licensing? Reach out and explore the possibilities together