What is indicated by the status 'Not Compliant' for retired software entitlements?

The status 'Not Compliant' for retired software entitlements signifies that the entitlement has allocations without corresponding rights. This situation typically arises when the software entitlement, even though labeled as retired, still has associated licenses or usage allocations that do not align with the actual software rights held by the organization.

In the context of Software Asset Management, compliance is closely tied to having the proper licenses for the software that an organization is using or managing. When software entitlements are retired, it may suggest that the organization no longer actively uses the software or has unallocated licenses. However, if those retired entitlements indicate 'Not Compliant,' it implies a disconnect where the licenses do not adequately cover the allocations – often because the company might think it has the rights to use a particular software version when it actually does not.

This status helps organizations identify potential issues that could arise during audits or compliance checks, ensuring that they maintain proper licensing practices even for retired software. Engaging in regular reviews of entitlement status and aligning them with actual software utilization helps mitigate risks associated with software audits and compliance.

In contrast, the other options do not accurately capture the significance of the 'Not Compliant' status. For example, active use of software or removal of the entitlement does not explain