Gartner Research

Capacity-Based Software Licensing Needs Continuous Optimization to Save Money and Stay Compliant

Published: 17 February 2016

ID: G00299450

Analyst(s): Jo Liversidge , Rob Wilkes


Technology procurement leaders must keep current on software licensing, governed by capacity metrics, in order to negotiate the best terms and pricing and to remain compliant.

Table Of Contents
  • Key Challenges


  • What's at Risk
  • Capacity Licensing Has Many Variations


  • Determine Whether Vendor Changes to Capacity Licensing Metrics Will Require Additional License Purchases or Cause Noncompliance
    • IBM Mainframe-Based Capacity Metrics
    • Distributed Systems Licensing
    • The PVU
    • Processor/Core Licensing Is Based on the Capacity of the CPU or Other Hardware Factors
  • Carefully Analyze How to Apply Definitions of All Licensor's Governing Capacity Metrics and Pricing Models
    • Hardware Upgrades Usually Increase Software Licensing Fees
    • Virtualization Can Present Challenges
    • Continuously Monitor, Manage and Optimize Capacity to Optimize Spending
  • In Advance of the Next Budgetary Period, Review Budget Plans With IT Leaders to Avoid Unbudgeted Compliance Costs From Vendor License Audits

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