CHECKLIST

WHAT TO DO WHEN YOURE

ABOUT TO BE AUDITED

THE
SOFTWARE
AUDIT
DEFENSE
CHECKLIST

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THE SOFTWARE AUDIT DEFENSE CHECKLIST

So youve received a license audit letter from

one of your software vendors. Two choices: you
can sit back and let them have their way (which
could cost you a fortune); or take action and
come out ahead.
At 1E, were big believers in the active approach.
Weve helped lots of companies throw light on
their software usage and discover some serious
savings in licensing and maintenance.

1E.COM

THE SOFTWARE AUDIT DEFENSE CHECKLIST

Heres a quick checklist to help you negotiate

your next audit. You might even think about
it as the IT health check you need to get your
software estate in order.
1. Initial Contact
As soon as youve received an exploratory,
we want to help you letter from the software
auditor or vendor:
I nform your legal department some audit letters are quite specific
and not to be ignored; others are complete fishing expeditions.
Based on legal advice, either prepare your reply or carry on regardless.
 et an immediate picture of your actual software usage.
G
This is a critical step and guess what AppClarity makes it easy.
 erform an initial SWOT analysis of the vendors software footprint within
P
your IT estate, noting any boundaries that the audit letter indicates
(this could play to your advantage if a hot spot is out of scope).

2. First Response
After conducting the SWOT analysis:
I nform senior management of an impending audit, including
a summary of your SWOT.
Contact the vendor confirming the following information:
The scope and products being audited
What constitutes proof of licence
What constitutes an install of the software under audit
 schedule for auditing accept theirs if convenient;
A
if not, stipulate your own
 our agreement (if relevant) that the third party can
Y
conduct the audit on behalf of the vendor.

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THE SOFTWARE AUDIT DEFENSE CHECKLIST

3. Preparing for the Audit

As soon as youve received a reply from the
vendor, take these steps:
 emove unused/ rarely used software AppClarity will show you
R
exactly where it is
I nform senior management of the precise audit schedule and scope;
aligning this to your initial SWOT
Start to collate all requisite proofs of entitlement relating to the vendor audit
 chedule the installation and running of any scripts making sure they only
S
run on devices specified in the scope of the audit
Schedule any on-site audit (if required).

4. Conducting the Audit

Chaperone your auditor or vendor.
Nows the time to get close!
Let the auditor conduct an on-site inspection (if required)
Ensure the auditor copies you on the findings of the audit
 nsure that platform usage is factored into audit findings
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(e.g. test/ development/ academic)
Ask the auditor to validate the licence metric and interpretation of any shortfalls
 repare a summary report for senior management and set expectations
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of potential liability.

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THE SOFTWARE AUDIT DEFENSE CHECKLIST

5. Negotiation Prep
Dont ignore the small print:
 ecome a subject matter expert in the license Terms and Conditions
B
to counter any potentially outlandish claims by the auditor.
 erify that the auditors server core/ processor specifications are accurate
V
(some inventory systems wont accurately pick up the core/ processor count
and that could adversely affect your license position).
 se 1Es licensing expertise (including vendor-specific knowledge) to review
U
license and install data were here to help!

6. Final Meeting
Its time for negotiation
Bring in 1E License Negotiation experts. You dont have to go it alone.
 ffer feedback on the how the audit was conducted and how the audit
O
experience was for you remember, youre the customer.
 ome to an agreement on any fees due (if any) using all the data at your disposal.
C
Remember: this is a negotiation; make a strong case and argue it.
 chedule an agreed payment plan. Again: youre the customer, so negotiate
S
on terms here too.

And for the future

Prepare yourself for your next biggest
software vendor audit to come along
the world of SAM is notoriously small,
and if you got stung on your first audit
then word will undoubtedly get out that
you might have weak IT controls in place.
An active approach always pays dividends.

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THE SOFTWARE AUDIT DEFENSE CHECKLIST

THE
BOTTOM
LINE
Software audits dont have to be bad news.
They can be a great catalyst for getting your
estate in order, removing unused software and
redeploying licenses where theyre needed.
Dont bury your head in the sand software vendors thrive on paralysis.
Dont let the audit go beyond the agreed scope.
Fully understand what information is being relayed back to the vendor.
Understand the role of the platform (dev/ test/ production etc.) in your IT estate.
Dont be afraid to ask for help at any time.
Longer term, think about what business as usual activity will make it easier produce
the required reconciliation report yourself to counter the next vendor audit.

For more help and advice, visit our Software Audit Defense site.

GOOD LUCK,
AND DO GET
IN TOUCH.
WE CAN HELP.

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About 1E
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Efficient IT solutions. 1Es mission is to
identify IT waste, help remove it and
optimize everything else. 1E Efficient IT
solutions help reduce servers, network
bandwidth constraints, software licenses
and energy consumption.

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info@1e.com

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1E shall not be liable for technical or editorial errors or omissions contained herein.