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One Advantage of Subscription Licensing: Less Chance of a Software Audit

By Mae Kowalke, TMCnet Contributor

One advantage of subscription licensing is that it cuts down on software audits; it is a lot harder to mess up software licensing compliance with a cloud model, since software in the cloud cannot be pirated or used out of compliance, and software installed on local machines but licenses on a subscription basis is regularly checked via the cloud.

Some businesses grumble at the downsides of the subscription model, since it usually comes at a greater total cost for the business. But avoiding a software audit is a big upside to the subscription model, as any business that has faced an audit can attest.

Not only are software audits invasive, they also can be quite costly. Making matters worse, many businesses respond to audit requests in precisely the wrong way.

For instance, many businesses will immediately purchase all the necessary software licenses to remedy compliance issues when an audit has been initiated. Purchasing new software licenses after an audit has been initiated can show guilt and jeopardize a company’s ability to resolve the matter, however.

So too can uninstalling the software in question and ignoring an audit request. This constitutes spoliation, and it entitles the publisher to damages for destruction of evidence. It also is rare for a business to resolve an audit without proffering a response.

Another mistake that businesses make in the face of an audit is purchasing consumer licenses for software that will be used for commercial purposes. Potential copyright infringement damages for purchasing the wrong license could be in excess of several hundred thousand dollars, according to experts.

These goofs can make the hassle and cost of a software audit much worse, turning a bad situation into a horrible one.

Better to avoid the issue of a software audit entirely, which is what the subscription model helps a business do.

There still are situations where businesses can run afoul of software licensing even if they use the subscription model, of course. But subscription licensing and the cloud model greatly reduces the likelihood of an audit.

This is one benefit of the cloud and the subscription model that often is overlooked.