Use the form below to ask a question or send us a message!

Friday, 13 March 2020 19:19

Software licensing reviews during COVID-19

Can I still be under a software license audit during the COVID-19 pandemic?

The question has come up many times during the COVID-19 pandemic, are software publishers still auditing accounts. The answer in a word is ‘yes’.

While we can’t speak for all publishers, we are certainly seeing audits started prior to the pandemic continue and new software audit notifications being received by customers.

And yes, no one is immune.  Recently heard a hospital receive an audit letter, and that was when reported COVID-19 cases are hitting new highs. The reason software publishers are continuing to audit accounts, is likely because software sales are falling.  Most publishers had poor Q1 results, projects continue to be postponed due to COVID-19 or revenue problems that were already occurring have been magnified.

While sales people are unable to reach many of their accounts, and face-to-face meetings are rare. The audit teams are separate from the account teams, and they are coming.  So while many companies are now working remote, audit teams have been working remote for years.  So being remote has not been an issue.

With publishers struggling to keep up revenue growth, audits continue.  They are often considered by many people to be revenue generators, and have short ‘sales’ cycles.  

How companies can respond:

  1. If you are already in an audit, it might makes sense settle quickly.  Especially if a quick settlement can benefit the customer.  Most publishers would be happy with less revenue quickly then trying to settle for a greater amount. We have even seen the scope being reduced to settle quickly rather than going through all the installed products.   
  2.  If you have been notified of a pending license review, best to respond as required.  And postpone as necessary as most audit clauses state they must work around business needs and during COVID-19, there certainly can be more pressing business needs then responding to software reviews.
  3. Keep records and compliance up to date. It is not a debate if you will get an audit letter, it is just a matter of when.   

 

You can certainly undertake the above tasks in-house. However, given the on-going nature of changes and the nuances involved in many areas, you might consider hiring a consultant to help you identify these cost savings opportunities.  

If you have already received a software compliance review letter, findings may result in costly unbudgeted settlement demands that include penalties. 

Contact us at  to identify and address these issues proactively.

logo

NYC, Houston and San Francisco

Telephone: (914) 893-6736