In today’s fast-paced digital landscape, small businesses are increasingly relying on technology to streamline operations, enhance productivity, and stay competitive. However, the rapid growth of IT tools, software, and services can make it challenging for small businesses to keep track of their IT subscriptions and licenses. Failure to stay on top of these subscriptions can have serious consequences, ranging from financial inefficiencies to legal risks.

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In our last article, we discussed the items that SMBs should prioritize when formulating their budget for the next year. One of the topics we highlighted was the cost savings that may be associated with managing licenses and subscriptions. Here’s why your organization should put this task on your priority list.

6 Benefits of Staying on Top of Subscriptions

  1. Cost Control and Budget Efficiency: One of the primary reasons small businesses must manage their IT subscriptions and licenses is to ensure they are not overspending on unnecessary services or duplicating subscriptions. Many software platforms offer similar functionalities, and businesses may unknowingly pay for overlapping services. Without regular audits of subscriptions, businesses may continue paying for tools they no longer use, are underutilized, or have been replaced by more efficient solutions.Did You Know? Many subscription-based services operate on a “pay-as-you-go” or renewal model, meaning that if a business misses a renewal date or forgets to cancel an unused plan, they could end up paying for services they don’t need.
  2. Legal and Compliance Risks: Many software licenses come with terms and conditions that businesses must adhere to, including how many users can access the software, what kind of use is allowed, and whether the business can transfer the license. If a small business is not compliant with these terms, it could face serious legal repercussions, including fines or lawsuits.This practice is even more important if you operate in highly regulated industries such as healthcare, finance, and education.
  3. Security Vulnerabilities: Outdated or unlicensed software can introduce serious security vulnerabilities into a business’s IT infrastructure. When businesses don’t keep up with software updates or continue using expired or unlicensed versions of software, they may expose themselves to cybersecurity risks. Software vendors regularly release patches and updates to fix security flaws, improve functionality, and address bugs.By staying on top of IT subscriptions and licenses, small businesses can ensure they’re using the most up-to-date and secure versions of software, minimizing their exposure to cyberattacks, data breaches, and other security threats. Furthermore, many software vendors refuse to provide security support or updates for unlicensed or expired versions, leaving businesses vulnerable. Related: Support for Windows 10 expiring next year.
  4. Operational Continuity: A small business depends on its IT systems to function smoothly. If a software license expires or a subscription goes unrenewed, it can disrupt business operations. Employees may suddenly lose access to critical tools, leading to delays, decreased productivity, and potential loss of revenue. In the worst-case scenario, a lack of access to important software could halt operations entirely.
  5. Vendor Relationship Management: Maintaining active and accurate records of IT subscriptions can also help small businesses build and maintain good relationships with their vendors. Timely payments and renewals show vendors that the business is reliable, which could open the door for better terms, discounts, or customer support. Additionally, businesses that regularly engage with their software providers for renewals or upgrades are more likely to stay informed about new features, product updates, or changes in pricing models.
  6. Scalability and Future Planning: As small businesses grow, their IT needs change. Managing IT subscriptions and licenses allows businesses to proactively scale their software and infrastructure in line with their growth. This could involve upgrading existing licenses to accommodate more users, adding new features, or even shifting to different platforms that better align with the business’s evolving needs. Staying on top of these details gives small business owners the flexibility to adapt to changes and avoid the complications of seeking last-minute solutions when new technology needs arise.

Ultimately, effective management of IT subscriptions and licenses is not just about keeping costs in check—it’s about building a robust, scalable, and secure foundation for long-term success. But you don’t have to do all the work on your own. If you would like to learn more about how managed services can help you to get more organized and cost efficient in the new year, call Alliance IT. We help SMBs grow, thrive and compete in today’s marketplace.