What is a compliance gap analysis?

A compliance gap analysis focuses on evaluating the differences between the software licenses an organization has and the actual usage of that software. This process is essential for understanding whether an organization is compliant with licensing agreements and regulations. By comparing the number of licenses purchased with the actual installations or use of software, businesses can identify areas where they may be over-licensed or under-licensed.

This analysis helps organizations manage their software assets more effectively, ensuring that they do not face potential legal risks due to non-compliance or unnecessary expenses from maintaining licenses they do not fully utilize. Ultimately, the goal is to achieve better alignment between software licenses and actual use, helping companies optimize their software portfolio and reduce costs.

The other options focus on different aspects of software management. A review of software installations may provide insights into how software is deployed but does not directly address licensing compliance. Similarly, assessing software performance examines the functionality and efficiency of software applications rather than the compliance with licensing agreements. Creating new software licenses involves the formulation of licensing agreements rather than analysis of current compliance status, making it unrelated to the gap analysis concept.