Automated software license management is a common practice in the IT industry. It may seem overkill to build a server based application just to monitor and account for software that is installed on computers on a network, but the task of keeping track of software licenses in use remarkably challenging. There are deeply rooted accuracy issues in trying to manage licensing without the use of an automatic process. The manual method of software license management has many opportunities to introduce inaccurate information. The manual method of software license management depends on a technician installing software, but the truth is not every item installed on every computer is installed through proper channels. In many companies, users have power user or even administrator level access and with those right, software can be added to their workstation by either downloading it from the internet or sharing disks among coworkers.

The automatic method of software license management will account for and capture any rogue software that might end up on a workstation regardless of the source. There are also times when a legitimate installation will go unrecorded due to human error, and with an automatic software license management system, all those random installs that slip through the crack will be added to the software license management database and can help to make sure that the company is not at risk of being out of compliance. There are legal risks associated with unlicensed software that can be easily mitigated with a software license management system that actively probes all the computers that it has access to and provides an exact inventory of the software and the versions of that software that can be referenced when purchasing licenses or comparing to existing, allowing administrators to give definitive counts if demanded to do so by an auditor.