What challenge does software license renewal present?

Software license renewal poses a significant challenge because it often necessitates a careful alignment of the licensing terms with the actual use of the software. This means that organizations must evaluate how the software is being utilized within their operations, ensuring that the quantities and types of licenses reflect current usage.

This alignment process can involve analyzing various data points, such as user activity, software deployment, and changes in the organization’s needs. If the organization's usage has changed since the last renewal—perhaps due to increased employees, new projects, or a shift in business direction—then the licensing terms must be adjusted to avoid over-licensing or under-licensing. Failing to align these terms correctly could lead to compliance issues or unnecessary costs, thus making the renewal process complex and critical for effective Software Asset Management.