Top 8 software license management tools for 2025

If you're an IT manager, you already know the headache: someone in marketing needs access to Adobe Creative Cloud. A new hire in sales needs Salesforce. Engineering wants to try a new development tool. And somehow, you're supposed to keep track of it all while making sure you're not wasting money on unused licenses or, worse, violating compliance agreements.

Software license management might not be the most exciting part of IT, but it's one of the most critical. With businesses using an average of 371 different SaaS applications (and that number keeps growing), keeping track of licenses has become increasingly complex. Without the right tools, you're likely overspending, creating security risks, or setting yourself up for a painful cybersecurity audit.

This guide breaks down everything you need to know about software license management, from what it is, why it matters and the best tools to make it easier.

What is software license management?

Software license management (SLM) is the process of documenting, tracking, and controlling all the software licenses in your organization. 

In practical terms, it's how you make sure that you track software to ensure:

• You're only paying for software you actually use
• You're not using software you haven't paid for
• You know exactly who has access to what
• You can quickly adjust licenses when people join or leave

Think of it as keeping inventory for digital assets. Just like you wouldn't let physical inventory disappear without tracking it, you shouldn't let software licenses go unmanaged.

Beyond this, good software license management typically regulates several key aspects:

• Who can use the software: Ensuring only authorized employees have access
• How they should use it: Setting appropriate usage policies and restrictions
• Where it can be installed: Limiting installations to approved devices and locations
• When licenses need renewal: Tracking expiration dates to avoid disruptions
• Compliance with terms: Ensuring usage stays within legal agreements

Without proper management, you risk financial waste, security vulnerabilities, and potential legal issues from non-compliance.

The different types of software licenses

Not all software licenses are created equal. Understanding the different types helps you make better decisions about what works for your organization.

Subscription-based licensing

This is the model that's taken over the software world. Instead of a one-time purchase, you pay a recurring fee (usually monthly or annually) for continued access.

How it works: Think Netflix or Microsoft 365. You maintain access as long as you keep paying. These licenses often include regular updates and support as part of the package.

Best for: Organizations that need flexibility to scale up or down quickly and want predictable, operational expenses rather than large capital expenditures.

Perpetual licensing

The traditional "buy once, use forever" model dominated software sales before cloud computing.

How it works: You make a one-time payment and own the right to use that version of the software indefinitely. However, support and updates may be limited or require additional maintenance fees.

Best for: Organizations with stable, long-term software needs and the capital to make upfront investments.

User-based licensing

This type of licensing charges based on the number of individual users who access the software.

How it works: You purchase licenses for specific numbers of users (named users or concurrent users). The cost scales directly with your team size.

Best for: Organizations that need to closely track who has access to different software tools.

Open source licensing

This type is free to use, with source code available for modification.

How it works: The software is available at no cost, but comes with specific terms about how it can be used, modified, and distributed. Some open source licenses require you to share any modifications you make.

Best for: Organizations looking to reduce costs and maintain flexibility to customize software for their specific needs.

Benefits of using a software license management tool

Managing software licenses might seem like just another administrative task, but the right tools deliver significant value to your organization in the following ways:

Stay compliant and avoid costly penalties

IT audits are a reality for many organizations, and the penalties for non-compliance can be severe. Good license management tools provide compliance management reports that show exactly what software you have, who's using it, and whether your usage aligns with your license agreements. When the inevitable audit comes, you'll have the documentation you need instead of scrambling to piece together information.

Cut software spending without cutting productivity

Most organizations waste 30% or more of their software budget on unused or underutilized licenses. These IT management tools help you identify these opportunities for savings. By tracking actual usage patterns, you can downgrade licenses for infrequent users, consolidate duplicate tools with overlapping functions, and negotiate better deals when you understand your real needs.

Strengthen your security posture

Untracked software creates security vulnerabilities. Every unauthorized application is a potential entry point for attackers and may not receive critical security updates. SLM tools help close these gaps by providing visibility to monitor software running in your environment. This visibility allows you to ensure everything is properly patched and remove unauthorized applications that could pose security risks.

Streamline IT operations

Without proper management solutions, IT teams waste hours on manual tasks like tracking down license information, processing software requests, and preparing for audits. Automation through license management platforms frees your team from these repetitive tasks. Provisioning becomes faster, reporting becomes simpler, and your skilled IT staff can focus on more strategic initiatives.

Must-have features in a software license management tool

With so many options available, knowing what features matter most can help you choose the right tool for your needs.

Complete license inventory

The foundation of any good SLM tool is a comprehensive inventory that tracks all your software assets in one place. Look for inventory solutions that automatically discover installed software across your network, capture all license details (purchase dates, renewal terms, costs, type of license), and maintain historical records of changes over time. This central repository becomes your single source of truth for all software-related questions.

Real-time usage tracking

Knowing what you own is only half the battle. Understanding how it's actually being used is what delivers real value. Effective tools monitor actual usage patterns, showing you which users are active, how frequently they access various applications, and which features they utilize most. This data helps you optimize license allocation and identify opportunities for training or consolidation.

Automated compliance monitoring

Manual compliance checks are time-consuming and error-prone. The best tools handle this automatically. Look for features that continuously compare your usage against license terms, alert you to potential compliance issues before they become problems, and generate audit-ready reports that demonstrate your compliance status.

Proactive alert system

License management isn't something you should have to actively monitor every day. Good tools work in the background and alert you only when action is needed. Key alerts include upcoming license renewals, compliance risks, unusual usage patterns, and unauthorized installation attempts. These notifications help you address issues proactively rather than reactively.

Seamless integration capabilities

License management doesn't exist in isolation. It needs to work with your existing IT infrastructure. Prioritize tools that integrate with your directory services, procurement systems, expense management platforms, and cloud services. These integrations create a more complete picture of your software environment and enable automated workflows across systems.

Top 8 software license management tools for 2025

Finding the right software licensing solution depends on your organization's specific needs. Here's our analysis of the leading options:

1. Rippling

Rippling stands out by integrating license management with broader IT, HR, and identity management capabilities. It's ideal for companies wanting to unify employee identity, device management, and software access in a single platform.

Key strengths

• Manages application access based on employee attributes like role, department, and status
• Provides real-time visibility into software usage and costs
• Simplifies onboarding and offboarding with automated access provisioning
• Integrates with over 600 apps for seamless license management
• Identifies unused or underutilized licenses to reduce unnecessary expenses
• Offers customizable reporting templates to track resource usage
• Enables custom workflows and approval chains for access requests based on company policies

2. Jamf

Jamf specializes in managing Apple devices and the software that runs on them.

Key strengths

• Licensed software records for tracking installations across Apple devices
• Software license compliance monitoring through inventory collection
• Application usage analytics to identify underutilized software
• Support for software identification (SWID) tags for accurate license counting

3. ManageEngine AssetExplorer

AssetExplorer provides core license management functionality as part of its IT asset management platform.

Key strengths

• Complete software license inventory and tracking system
• Support for most license types (OEM, concurrent, enterprise, volume, etc.)
• Compliance monitoring with under/over-licensed status tracking
• Unauthorized software installation alerts and notification capabilities

4. FlexNet Manager

FlexNet Manager by Flexera provides enterprise-scale software license management and optimization. 

Key strengths

• Automation of effective license positions using an entitlement library with 900,000+ applications
• Deep understanding of product use rights for optimal license configuration
• Specialized optimization for major vendors like Microsoft, IBM, Oracle, SAP, and Adobe
• Verified usage metering to identify savings opportunities across all deployment models

5. Zluri

Zluri focuses on SaaS subscription management with strong optimization capabilities. 

Key strengths

• 360-degree spend visibility across expense tools, finance systems, and contracts
• License utilization analysis with one-click optimization actions
• Automated license reclamation based on usage threshold policies
• Forecasting models to predict future licensing needs and prevent overspending

6. ServiceNow Software Asset Management

ServiceNow offers software license management as part of its comprehensive IT service management platform.

Key strengths

• Integration with the ServiceNow platform for unified IT management workflows
• AI-powered publisher compliance summaries and management recommendations
• Comprehensive SaaS license management capabilities
• Pre-built publisher packs for complex license optimization

7. Snow License Manager

Snow License Manager is another software asset management (SAM) tool from Flexera.

Key strengths

• Visibility and control of technology use across the organization
• Specialized engineering application license management capabilities
• Automated data collection through Snow Inventory Agents and Integration Connectors
• Usage-based identification of optimization opportunities and cost savings

8. Ivanti

Ivanti provides comprehensive IT asset and software management solutions through its Neurons platform.

Key strengths

• Automated software deployment capabilities for rapid distribution to thousands of devices
• Software license tracking and reclamation for unused applications
• Complete asset lifecycle management from procurement to disposal
• Integration between asset management and service management software systems

Best practices for effective software license management

Beyond selecting the right tool, these practices will help you build an effective license management program:

• Centralize your license information: Maintain a single source of truth for all license data, including purchase details, renewal dates, and assigned users. This prevents information silos and ensures consistent tracking.
• Implement a formal software request process: Require all software purchases to go through IT, even for cloud applications. This prevents shadow IT and ensures proper evaluation of licensing requirements before purchase.
• Perform regular compliance checks: Don't wait for an audit notice. Schedule quarterly reviews of your license position to identify and address compliance issues proactively.
• Optimize before purchasing: Before buying new licenses, check if existing licenses can be reassigned from inactive users or replaced with less expensive alternatives that meet the same needs.
• Standardize software when possible: Limit the number of different solutions serving similar functions. Standardization simplifies management and often enables volume discounts.
• Tag licenses with business context: Associate licenses with departments, projects, or cost centers. This provides better visibility into how software costs align with business activities.
• Establish a clear renewal strategy: Create a calendar of upcoming renewals with 90/60/30 day review checkpoints to evaluate whether renewal, renegotiation, or replacement makes most sense.

Streamline your software license management with Rippling

Managing software licenses shouldn't be a full-time job. Rippling's IT management software offers an integrated approach that combines identity management, device control, and license tracking in a single platform, dramatically simplifying how organizations handle their software assets.

Unlike traditional license management systems that require manual tracking and provisioning, Rippling automates the entire lifecycle. When a new employee joins your organization, Rippling automatically provisions the appropriate software based on their role. When someone changes departments, their software access adjusts accordingly. And when an employee leaves, their licenses are immediately reclaimed.

This automation delivers significant benefits:

• Reduced administrative overhead: Eliminate the manual work of provisioning and tracking licenses across multiple systems
• Improved security: Ensure departing employees lose access to software immediately, closing potential security gaps
• Optimized spending: Gain visibility into actual usage and automatically reassign underutilized licenses
• Simplified compliance: Generate comprehensive reports showing exactly who has access to what software

With Rippling's role-based access controls, you can create dynamic policies that ensure the right people always have the right tools, without requiring constant IT intervention. This approach not only saves time but also improves the employee experience by providing faster access to needed resources.

Software license management FAQs

What is the ITIL software license management process?

The ITIL (information technology infrastructure library) approach to software license management follows a structured lifecycle that integrates with broader IT service management practices. 

It breaks down license management into identifying what software you need, purchasing appropriate licenses, deploying them correctly, monitoring usage regularly, and optimizing your license portfolio to reduce waste. The goal is to stay compliant with vendor agreements while avoiding overspending on unused licenses. 

How do companies keep track of software licenses?

Most well-managed organizations use a multi-layered approach to track their software licenses effectively. At the foundation lies specialized software license management tools that automatically discover installed applications, monitor usage patterns, and maintain a centralized inventory of all license details. Some companies prefer to implement formal approval workflows that ensure all software requests go through IT, preventing shadow IT and maintaining accurate records. 

How do you conduct a software license audit?

To conduct a software license audit:

1. Define the scope by determining which software products, departments, and systems to include
2. Gather documentation of all license purchases and agreements
3. Use inventory tools to scan your network and identify all installed software
4. Compare your entitlements (purchased licenses) against actual deployments
5. Analyze discrepancies to identify compliance gaps or optimization opportunities
6. Document findings and develop an action plan to address any compliance issues
7. Implement processes to maintain ongoing compliance

This blog is based on information available to Rippling as of April 29, 2025.

Disclaimer: Rippling and its affiliates do not provide tax, accounting, or legal advice. This material has been prepared for informational purposes only, and is not intended to provide or be relied on for tax, accounting, or legal advice. You should consult your own tax, accounting, and legal advisors before engaging in any related activities or transactions.