TL;DR: Unchecked software buying creates shadow IT, license waste, and compliance exposure, according to Zluri’s guide to software asset management best practices. The real issue is governance drift, where procurement, usage tracking, and audit discipline fall out of sync with actual application sprawl.
Editorial analysis by NHI Mgmt Group, based on content published by Zluri: “8 Software Asset Management Best Practices”.
Key questions
Q: How should teams stop shadow IT in software asset management?
A: Teams should combine software discovery, procurement approval, and usage monitoring into one operating model.
Q: Why do unused software licences create security and governance risk?
A: Unused licences are not only a cost problem.
Q: What breaks when software usage is not audited regularly?
A: Without regular audits, organisations cannot tell whether installed software still matches approved contracts, active users, and policy conditions.
Practitioner guidance
- Define a software asset management policy Set ownership for procurement, IT, legal, and security so software intake, approval, renewal, and retirement follow one process rather than ad hoc buying.
- Centralize software inventory data Join discovery, licence records, contracts, and usage data into one inventory so the team can see installed applications and active entitlements together.
- Track usage against entitlements Review underused, duplicated, and unapproved applications on a regular cadence so licences can be reassigned or removed before renewals lock in waste.
Bottom line: Software asset management breaks down when organisations cannot keep procurement, usage, and approval data aligned with the live software estate.
Explore further
View Full Forum → | NHI Foundation Course → | Our Services → | Read the full analysis →
Software asset management fails first as a visibility problem, not a budgeting problem. Once teams cannot see what has been bought, installed, and actively used, every downstream control becomes reactive. That is why shadow IT is not a side issue but the point where governance and reality separate. Practitioners should treat discovery and inventory as the foundation of software control, not a reporting add-on.
A few things that frame the scale:
- Nearly 60% of IT leaders cite restrictive cost and complexity as a weakness of legacy identity governance, according to the 2025 State of Identity Governance Report.
A question worth separating out:
Q: How do procurement and IT teams govern software renewals more effectively?
A: They need a renewal decision process that combines spend, usage, and business ownership. If renewals are handled only as finance events, underused software keeps getting extended and shadow IT remains invisible. Governance works best when every renewal has an accountable owner and an evidence-backed decision.
👉 Read our full editorial: Software asset management best practices expose shadow IT risks