TL;DR: Software license management best practices aim to reduce waste, compliance risk, and visibility gaps across SaaS estates, according to Zluri’s guidance on centralized inventory, usage monitoring, renewal tracking, and procurement controls. The deeper lesson is that software licensing is now an identity governance problem as much as a cost problem.
NHIMG editorial — based on content published by Zluri: SaaS Management Top 10 Software License Management Best Practices
Questions worth separating out
Q: How should organisations reduce software licence waste without creating access friction?
A: Start with a single inventory that ties each licence to an owner, an active user, and a renewal date.
Q: Why do software licences become a governance problem rather than just a cost issue?
A: Because licences are entitlements, and entitlements persist unless someone owns their lifecycle.
Q: What do security and IAM teams get wrong about software licence management?
A: They often treat licensing as a procurement task instead of a lifecycle control.
Practitioner guidance
- Create a single entitlement inventory Map every software licence to an owner, business purpose, renewal date, and usage status.
- Tie renewals to policy review Require a named approval step before automatic renewal, especially for high-cost or low-use applications.
- Automate utilisation-based reclamation Set thresholds for reclaiming, downgrading, or cancelling licences when usage remains below the agreed level.
What's in the full article
Zluri's full blog post covers the operational detail this post intentionally leaves for the source:
- Step-by-step software licence management tactics for centralising inventory and tracking renewals.
- Operational examples of how to detect underused or redundant SaaS licences across departments.
- Platform features for auto-reclaiming licences and automating renewal reminders.
- Procurement workflow guidance for standardising purchase approvals and reducing duplicate software.
👉 Read Zluri's guide to software license management best practices →
Software license management gaps: what IAM teams should fix first?
Explore further
Software licence management is now an identity governance problem, not just a finance exercise. Zluri’s guidance is framed around waste reduction and compliance, but the operational pattern is familiar to IAM teams: unmanaged entitlements accumulate when ownership, usage, and renewal are not tied together. The same structural weakness that creates overspend also creates access drift. Practitioners should treat licence administration as part of entitlement governance, not a separate procurement silo.
A few things that frame the scale:
- 70% of organisations grant AI systems more access than they would give a human employee performing the exact same job, according to The 2026 Infrastructure Identity Survey.
- 67% of organisations still rely heavily on static credentials despite the risks they pose to agentic AI deployments.
A question worth separating out:
Q: Who should own software licence governance in an organisation?
A: Ownership should sit across procurement, IT, security, and application owners, with a clear accountable lead. Procurement can manage commercial terms, but identity and access teams should govern entitlement assignment, review, and reclamation. Without shared ownership, licence sprawl becomes invisible and difficult to correct.
👉 Read our full editorial: Software license management best practices expose SaaS governance gaps