There are a number of areas we look at with any new or potential client for cost savings.  One of the most common comes in the form of software licensing.  Short of the occasional free application, almost all business class software requires the purchase of a license to use it.

In a recent discovery session with a potential client, we asked them about how they would go about procuring their licenses.  They told us that the licenses they need would come OEM (with the particular machines when they bought them) or they would buy them retail.  The retail purchase of licenses is always a bit of a red flag for us, as there are different ways to potentially get licenses other than “off the rack.”

Most commonly, and in this case, we told the potential client to look into partner programs for which they might qualify.  Often times in partner programs, you can get reduced pricing on licenses.  Concurrently, there are sometimes industry-associated or function specific avenues for software licensing.  A great example is a company called TechSoup that focuses on technology for non-profits and libraries.  They take advantage of software donations and things like Microsoft’s Non-Profit Donor Program to provide very aggressively priced licensing to these groups that qualify.

Finally, there are also circumstances where licenses can be leased if you are using a certified partner to provide technology services.  An example would be to take advantage of license leasing if you were using private hosting with a cloud provider.  This scenario provides good pricing as well as a lot of flexibility.

In the end, the potential client we mentioned earlier found a partner program for which they didn’t know they were qualified.  Through this program, their annual savings on licensing was about $25,000.  Just from finding a better way to source the products they needed.

So remember, just because you do it one way now, doesn’t always mean that’s the best way.  Understand your licensing situation and find the best route for you and your business.  No one wants to spend more than they have to.