Navigating the New Era of Software Licence Audits

Software licence compliance audits have long been perceived as a necessary, albeit unpleasant, aspect of IT governance. In 2025, however, these audits have evolved into a strategic battleground where vendors not only enforce compliance but also uncover lucrative revenue opportunities. While the “big four” vendors—Microsoft, IBM, Oracle, and SAP—remain dominant players in this space, a growing number of other software providers are implementing increasingly sophisticated audit programmes. This expansion demands that organisations rethink their approach to licence management and compliance preparation.

As software vendors diversify their audit strategies and enforcement mechanisms, organisations must navigate an increasingly complex terrain. This op-ed explores the evolving audit landscape, highlighting key players beyond the usual suspects, emerging trends reshaping compliance practices, and actionable strategies for organisations to stay ahead of the curve.

The Growing Cast of Audit Players

While Microsoft, IBM, Oracle, and SAP are well-known for their rigorous audit programmes, many other vendors have adopted aggressive compliance enforcement strategies. These companies range from industry stalwarts like Adobe and Autodesk to niche players such as OpenText and Reprise Software. Each vendor brings its own unique approach to audits, creating a diverse and challenging ecosystem for organisations to manage.

OpenText: A Complex Web of Acquisitions

OpenText has emerged as a formidable force in the audit space, particularly through its acquisitions of Micro Focus and Attachmate. Micro Focus audits are notoriously complex due to varied licensing rules inherited from legacy contracts. Attachmate’s approach is even more aggressive, often escalating quickly to legal action and imposing punitive measures such as retroactive charges with high interest rates. Organisations working with OpenText must navigate a labyrinth of contractual nuances to avoid costly compliance gaps.

Adobe: From Piracy Prevention to Subscription Enforcement

Adobe’s audit practices have evolved alongside its shift toward subscription-based licensing models. Leveraging third-party auditors like the Business Software Alliance (BSA), Adobe focuses on verifying legitimate serial numbers, ensuring proper upgrades, and identifying pirated software installations. As subscription services like Creative Cloud dominate its portfolio, Adobe’s audits increasingly target usage discrepancies in cloud environments—a trend that mirrors broader industry shifts.

VMware: Systematic Compliance Checks

VMware employs a structured audit framework that begins with questionnaires and data collection before progressing to reconciliation and resolution phases. Common compliance issues include hosting limitations, territory restrictions, and unintentional upgrades that violate licence terms. VMware’s reliance on automated tools like vCenter highlights the growing role of technology in modern audit practices.

Autodesk: Design Software Under Scrutiny

Autodesk’s audits often centre on its flagship design tools like AutoCAD and Revit. Using proprietary inventory tools to gather usage data, Autodesk targets organisations using outdated software or exceeding licence entitlements. Non-compliance can lead to significant penalties, making proactive licence management essential for businesses reliant on Autodesk products.

Siemens: Industrial Software Challenges

Siemens’ audits focus heavily on its industrial software suites such as SIMATIC WinCC/Audit. These audits often involve geographic restrictions and specific usage limitations tied to industrial applications—a level of complexity that demands meticulous documentation from customers.

Dassault Systèmes: Server-Client Licensing Models

Dassault Systèmes enforces strict compliance through server-client configurations tied to its design software products like CATIA. Organisations face penalties if unauthorised usage exceeds 5% of entitled usage—a threshold that underscores Dassault’s stringent approach to enforcement.

Quest Software: A Phased Audit Process

Quest Software employs a methodical four-phase audit process that includes scope definition, data collection, reporting, and resolution. This structured approach allows Quest to identify compliance gaps with precision while offering customers clear pathways for remediation.

Emerging Trends Reshaping Audits

The software audit landscape is no longer static; it is rapidly evolving in response to technological advancements and shifting business models. Several key trends are reshaping how vendors conduct audits—and how organisations must prepare for them.

The Rise of Remote Auditing

The pandemic accelerated the adoption of remote auditing practices, which have now become standard across the industry. Vendors leverage AI-driven tools to analyse deployment data remotely while maintaining audit quality and efficiency. However, remote audits also introduce cybersecurity risks as sensitive organisational data is shared across digital channels—a challenge organisations must address proactively.

AI-Powered Compliance Tools

Artificial intelligence is revolutionising licence compliance by automating routine tasks such as data collection and analysis. Vendors increasingly use AI to identify patterns in software usage that may indicate non-compliance or security vulnerabilities. For organisations, investing in AI-powered compliance tools offers a proactive way to monitor deployments continuously and reduce exposure during audits.

Subscription-Based Licensing Models

The shift toward subscription-based licensing has fundamentally altered the nature of software audits. While these models simplify access to software products, they also introduce new complexities related to usage tracking and cost optimisation—particularly in hybrid cloud environments where deployments are fluid and dynamic.

Security Integration into Audits

Modern audits now extend beyond traditional licence verification to include assessments of cybersecurity measures such as incident response capabilities and supply chain resilience. As security vulnerabilities increasingly overlap with compliance risks, organisations must adopt holistic approaches that integrate both domains seamlessly.

Strategic Guidance for Organisations

Navigating the expanding landscape of software audits requires more than reactive responses; it demands proactive strategies that transform compliance from a liability into an opportunity for optimisation and efficiency.

Build Robust Governance Frameworks

Organisations must establish clear governance structures with defined roles for IT procurement teams, legal departments, and executive leadership in managing software licences effectively.

Embrace Continuous Monitoring Solutions

Investing in automated tools that provide real-time visibility into software deployments can significantly reduce compliance risks while streamlining audit preparation processes.

Develop Comprehensive Audit Response Protocols

Standardised response protocols—including designated teams for handling audit requests—can improve outcomes by ensuring consistency in communication and documentation.

Conduct Regular Internal Assessments

Proactive self-audits allow organisations to identify compliance gaps before vendor scrutiny begins—a strategy that mirrors best practices employed by top-performing businesses.

Maintain Detailed Documentation

Complete records of licence entitlements, deployment configurations, usage patterns, and historical compliance activities serve as the foundation for effective audit defence.

Conclusion: Turning Compliance into Opportunity

The expansion of software licence audits beyond the traditional “big four” vendors reflects a broader industry shift toward more sophisticated enforcement mechanisms—and greater financial stakes for organisations found non-compliant. In this evolving landscape, businesses cannot afford to treat compliance as a reactive exercise; instead, they must embrace it as an integral component of IT governance. By investing in proactive strategies such as continuous monitoring solutions, robust governance frameworks, and comprehensive documentation practices, organisations can transform audits from adversarial events into opportunities for optimisation—and even innovation.

As we move deeper into 2025 and beyond, those who succeed will be those who view compliance not merely as a defensive measure but as a strategic advantage in navigating the complexities of modern software ecosystems.