Multi-cloud environments have become the new standard for IT infrastructure, bringing both opportunities and challenges to software license management.
As businesses increasingly adopt a mixture of on-premises infrastructure, cloud computing services, Software as a Service (SaaS), and cloud-based management portals, navigating the complexities of licensing and subscriptions in these environments becomes crucial. In this article, we explore how multi-cloud is changing software license management and what IT decision-makers need to know to navigate this transformation.
Experienced IT decision-makers are well aware of the differences between traditional on-premises licensing and cloud-based models. However, the reality of multi-cloud licensing brings an added complexity that requires careful consideration. Unlike the perpetual licenses of the past, multi-cloud often involves subscription or pay-as-you-go models from multiple vendors, which offer flexibility but require a different approach to management.
Subscription-based cloud licensing provides a unique opportunity for organisations to optimise costs by only paying for what they use, reducing overhead associated with underutilised software. However, managing licenses across multiple clouds and on-premises environments can lead to unexpected costs if usage isn't closely monitored, making multi-cloud license management a careful balancing act.
With the transition to multi-cloud services, enterprises are often confronted with new cost structures that differ from traditional licensing. Instead of hefty upfront investments, multi-cloud services typically involve recurring payments across multiple vendors. While this can spread costs out more evenly, it also means that IT leaders must think beyond the immediate licensing fees to encompass related costs such as scaling resources, support, and additional features.
One of the major challenges in multi-cloud environments is keeping track of consumption to reconcile payments effectively, especially when dealing with different compliance requirements from each vendor, users consuming services via credit card, or simply forgetting to switch things off. According to a study by Flexera, one of the major concerns for IT teams is the risk of "cloud sprawl" - the uncontrolled growth in cloud services - which can lead to inflated spending if licensing isn’t properly managed (Flexera, 2024). This makes it essential to continuously monitor and optimise licensing to ensure that the business doesn’t overspend on unused or underutilised services.
Managing licenses in a multi-cloud world requires leveraging the right solutions to maintain control and visibility. Traditional software asset management (SAM) tools often fall short when applied to multi-cloud environments, where licenses are fluid, and resources can be spun up and down at a moment’s notice. OneTeam IT offers Licensing Management as a Service, providing organisations with the expertise and tools needed to ensure compliance, track usage, and prevent unnecessary spending across complex multi-cloud environments.
The risk of non-compliance is real, and the costs can be significant.
Our Licensing Management as a Service solution supports automation, which is crucial for maintaining an efficient and compliant multi-cloud license environment. Automating routine tasks, such as deprovisioning unused licenses or monitoring consumption patterns, can save both time and money. A recent report by Worldmetrics highlighted that optimising cloud usage can save on operational costs by as much as 25% (Worldmetrics, 2024). For companies moving towards a multi-cloud environment, implementing such automated solutions is a necessary step in managing the complexities of license reconciliation and compliance.
Multi-cloud adoption is not just a technical shift - it's also a strategic change that affects licensing and cost management across the board. To effectively manage mutli-cloud consumption, IT leaders need to foster an ongoing process of monitoring, optimising, and renegotiating. This requires not only an understanding of the licensing or subscription differences but also an approach centred on proactive management and the use of suitable tools to keep costs in check.
If your organisation is navigating a multi-cloud environment and facing challenges with recurring cost management, OneTeam IT can help. As a trusted partner with deep expertise in IT infrastructure and cloud environments, we offer Licensing/Subscription Management as a Service to ensure your technology requirements align perfectly with your business goals, driving both efficiency and cost savings. Get in touch today to learn how we can support your journey.
