Software license management tools: 12 picks for smart businesses in 2024

They told you, ‘You’ll need software management as your company grows.’ They were right. But which license management app offers the smartest solution?

License management software may not have previously been at the top of your must-have list. From project management tools to accounting software…your growth has exploded your SaaS stack. Suddenly, action must be taken to harmonize your tools. 

Software license management offers an effective way to organize and optimize your company’s app subscriptions. The best tools are underpinned by a fierce cost-optimization strategy and give you the best chance to thrive in a competitive market. 

If you’re still debating whether or not to stick with your dusty spreadsheets, it’s time to acknowledge the red flags.

When is the right time for license management software?

Businesses thrive with more efficient software. Software that increases productivity and work-life balance creates company-wide positivity. It’s no wonder, then, that rose-tinted SaaS glasses can lead to a delay in rigorous license management. But it’s critical to the financial growth of your business to get your licenses under control. 

These are some key indicators that your licenses need more holistic management. 

• Chaotic spending. The design department has begun procurement of a new app, and you’re left wondering why. It’s not part of your company goals for this quarter, and it doesn’t align with the direction of your brand. These types of emotions-driven decisions result from a lack of a centralized approach and last-minute manual approval policies. 

• Misallocated budgets. If you’ve had a similar budget for each department since your business began, you’re likely to be missing development opportunities. However, it’s difficult to see where opportunities are without an in-depth analysis of app performance and usage. For instance, if you can’t see that an app plan needs scaling up due to high usage, you may underallocate funds for its renewal. Later, a department may end up purchasing costly additional storage or seats.

• Unused or duplicate licenses. SMEs can lose an average of $2 million annually on unused licenses. Perhaps 150 licenses were purchased when only 50 employees needed to access the software. Even worse is the gut-wrenching moment you discover different departments have purchased the same software, doubling your costs. 

• Unidentified vendor risk. Unmanaged licenses can be susceptible to risk, such as operational inefficiencies, reputational issues and cybersecurity threats. Regularly scheduled vendor evaluation is part of effective SaaS management.

• Internal access threats. Not all employees need to access every bit of software. If licenses are unmanaged, however, employees could potentially expose sensitive data, threatening your security compliance. 

• Non-compliant software. The best license management tools provide a structured and reliable procurement process. When you purchase SaaS with a haphazard approach, you could put your company at risk of a data breach or affect compliance legislation, such as GDPR. 

These concerns can be easily addressed with an automated approach to SaaS management. Thankfully, there are many tools that can take care of your license management needs… but too many options cause analysis paralysis. 

How do you know that a software license management tool is high-quality?

The key features of an effective SaaS license management tool

Of course, there’s more to SaaS management than neatly categorized software. Here are some of the must-haves for your new license management tool.

• Centralization. Bringing your SaaS stack into the light on one platform is a game-changer. You can immediately identify duplication or unauthorized Shadow IT and remove it. Clear visibility for all employees means shared responsibility for SaaS and less chance of future inefficiencies. Imagine the cost that can be regained from just a few unnecessary app subscription cancellations. 

• SaaS analysis. You’ll no longer need a string of formulas and slow, manual scrutiny of a spreadsheet to gather SaaS feedback. License management software can provide a granular analysis of SaaS usage, performance and ROI across your company. Together with qualitative feedback from employees, this informs your evidence-based approach to business goal-setting.

• Budget management. With a clear understanding of your tech stack’s performance, SaaS waste is a thing of the past. Now, your budget allocation will align with the needs of the company. You can right-size software that has overlapping features and eliminate underperforming software or inactive licenses. You’ll discover more budget for innovation in the process. 

• Risk and security management. Unwanted apps that create SaaS sprawl and potential data breaches can be culled. A management platform makes security information and updates easily visible to those employees who need it. For those who don’t, limits can be placed on access with permission sets. 

• Procurement procedure. A complex process like procurement requires time and a committed workforce, but the best software licensing tools offer support in this area, too. They use best practices for renewals, including timeline reminders, automated workflows and on/offboarding procedures. You can save big on time and save smart on cost when you’re no longer stuck with auto-renewed SaaS or overspending on unnecessary app features. Invest this time into building mutually profitable vendor relationships to secure even more deals and discounts on future SaaS. 

In a high-quality SaaS license management tool, each important feature works together to maximize cost-efficiency and ROI. 

Unfortunately, no business has a limitless budget. You want to ensure you get the best value from your licensing tool. To make an informed decision that boosts your company’s growth, the finer details of each tool must be compared. 

12 best software license management tools

There’s no doubt that cost is a key consideration for modern businesses when choosing a new license management tool. But security is equally important, with 70% of enterprises currently prioritizing this factor. 

Here’s your at-a-glance ranking of the best software license management tools.

With a clear overview of price, potential savings and security standards, you’re closer to choosing your licensing management software. Now, let’s explore the specific benefits of each tool to solidify your perfect choice. 

1. Spendbase

Best for: Comprehensive, cost-optimized SaaS management

With an unlimited number of procurement requests, apps, integrations and licenses for you to manage, Spendbase provides value at every step. Price benchmark insights and exclusive vendor discounts set Spendbase apart in the license management field. 

Benefits

• Identify Shadow IT on your centralized platform to instantly save costs and protect your company’s security.
• Uncover areas of financial waste, such as unused and underperforming licenses, through automated SaaS spend analytics and in-depth reporting.
• Remain in control of your SaaS renewals with real-time updates and reminders.
• Optimize your procurement with automated workflows and Slack integration.
• Win SaaS discounts and deals with the help of Spendbase’s expert vendor negotiators.

Security

ISO 27001 , SOC 2, AWS Cloud encrypted data storage, Zero tracking of personal employee accounts

2. Cloudeagle

Best for: Streamlined processes

Cloudeagle’s drive to help you spend less on every app purchase is achieved through smooth SaaS governance and procurement processes. Their tool offers 100% visibility of your stack, meaning no more nasty cost surprises.

Benefits

• Detection and elimination of Shadow IT
• Spend, app usage and license insights
• Automated on and offboarding
• Slack approval workflows for speedy communication
• AI-powered renewal calendars to avoid missing deadlines

Security, ISO 27001, SOC 2, No data retention and no data sharing

3. LicenceOne

Best for: Preventing SaaS waste

LicenceOne have a simple yet effective approach to SaaS management. Their key pillars of detection, prevention and access management help you regain control of your software subscriptions. 

Benefits

• Quick initial analysis to detect SaaS waste
• Up-to-date information reporting on all applications
• Visibility on expenses and access, responsibility assignment by team and anticipation of renewals 
• Human customer support

Security

ISO 27001, SOC 2, Strict access controls to data

4. Zluri

Best for: Automation time-savers

Zluri offers a single source of truth for your SaaS stack. Their discovery process for Shadow AI and Shadow IT boasts nine unique methods for scrupulous SaaS auditing. 

Benefits

• App rationalization and redundancy
• Deep usage tracking for apps
• Auto-reclaim licenses
• Zero-touch SaaS onboarding

Security

ISO 27001, SOC 2, Near end-to-end encryption

5. Spendflo

Best for: Streamlined procurement

Spendflo put procurement front and center of their SaaS management agenda. Their procurement process provides spend control with seamless intake and vendor management, delivering value.

Benefits

• A cohesive platform to streamline your SaaS
• Identification of duplications and Shadow IT
• Rich SaaS insights data
• Automated, periodic surveys to gain employee SaaS sentiment

6. Torii

Best for: Speedy SaaS discovery

Torii not only helps you to discover 100% of your apps but also makes cost savings easier with AI-led SaaS-Ops management. 

Benefits

• Reduced SaaS spending with optimization
• Centralized contracts and renewals
• Customizable user application and cost-saving workflows

Security

SOC 2, AWS cloud-encrypted data storage, Confidentiality agreements

7.Vertice

Best for: Transparent SaaS purchasing

Vertice prioritizes three key areas to optimize your SaaS stack – transparency, predictability and cost-efficiency. 

Benefits

• Locate cost optimization areas
• Intelligent approval workflows
• Trusted expert SaaS buyers

Security

Not stated.

8.Cledara

Best for: Day-to-day task automation

Cledara’s mission is to put your software, cloud and ad spend in one place. They help you gain actionable insights to reduce your SaaS costs. 

Benefits

• Real-time directory of software and hosting
• Automated day-to-day access requests, budget changes contracts, invoices and manual accounting tasks
• Payments built for software

Security

ISO 27001, SOC 2, Tokenized virtual cards

9. Zylo

Best for: Efficient workflows

Zylo aims to give users answers to their questions about SaaS management and provides workflows to manage software with confidence.

Benefits 

• License level usage and right-sizing
• App-to-app comparisons
• SaaS renewal management

Security

ISO 27001, SOC 2, Third-party management

10.BetterCloud

Best for: Tracking and securing SaaS

BetterCloud offers a complete and insights-fueled platform for end-to-end SaaS management for IT. 

Benefits 

• Prevent overlap in subscriptions
• Optimize licenses against industry benchmarks
• Drag and drop workflow builder 

Security

ISO 27001 , SOC 2, OAuth 2.0 open standard authorization

11.ManageEngine Asset Explorer

Best for: Flexible asset categorization

Asset Explorer presents the essentials of enterprise IT asset management, with control from purchase to expiration of your SaaS. 

Benefits 

• Custom workflows to automate life cycles
• Purchase and vendor management
• CMDB to visualize the digital infrastructure

Security

ISO 27001, SOC 2, Encryption mechanism

12.FlexNet Manager by Flexera

Best for: Granular data reports

FlexNet Manager helps you reduce spend and compliance risk with license optimization. 

Benefits 

• Forensic-level insights into license performance and usage
• Right-size and manage assets
• Entitlement library to automate effective license positions

Security

ISO 27001, SOC 2, Transport Layer security setup