What does the over-licensed amount indicate in the Product Results?

The over-licensed amount represents the difference between the total number of software licenses that an organization has purchased and the number of installations that are actually in use. This metric is critical for organizations because it highlights the extent to which they have acquired more licenses than necessary for their current usage.

Having a clear understanding of over-licensing is essential for effective Software Asset Management; it helps organizations identify opportunities for cost savings by potentially reducing their number of licenses or reallocating excess licenses to areas where they may be needed.

Recognizing over-licensing thus enhances compliance efforts, as it minimizes the risk of audits and potential penalties associated with under-utilizing purchased software. Properly managing this balance allows organizations to ensure they are only paying for software that is actively being used, leading to more efficient budgeting and resource allocation.