Software License Management - 071-0527-22

Description of Agency

Software license management is the process to ensure that the required data concerning software licenses, license entitlements, and license usage is accurately recorded for all IT assets. Proper software license management helps ensure that licenses are used in accordance with licensing agreements and are cost-effectively deployed and that software purchasing and maintenance expenses are properly controlled.

Software licenses are the rights to use software with certain terms and conditions. Licenses may be paid for or free but are normally required whenever externally-sourced software is installed or executed on a computer device. Licenses may be defined in enterprise terms, such as number of workstations or users, in which case a license is required for each qualifying unit or individual regardless of actual usage.

The State acquires software based on an agency-determined need for a software solution. After applicable review and negotiation of the corresponding software licensing agreement, purchase of the software is made directly from the publisher or through an approved software reseller in the Michigan Master Computer Program (MMCP). After the software is acquired, the Department of Technology, Management, and Budget (DTMB) installs the title on the appropriate workstation or server. As of October 2021, the State had installed approximately 3,200 commercial software titles from 650 software publishers on the State’s workstations and servers.

Software license management is the primary responsibility of DTMB’s Information Technology Asset Management Software Asset Management and Optimization (ITAM SAMO) team and Central Procurement, in conjunction with State agencies.

Audit Objectives

  1. To assess the sufficiency of DTMB’s software license management controls.
  2. Timing

    Estimated Release Date: June 2022

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