Few expenses grow as quietly as software. A new tool here, an extra user there, and by year's end there is a number on the invoice that nobody can quite explain. The good news: reducing software costs is rarely about going without. Most of the time companies pay for things they no longer need, or on terms nobody ever renegotiated.
We trade in licences and manage them, and the same patterns keep coming back. So we have collected the levers that work most reliably in practice. There is no magic trick among them. But together they often make the difference between a budget that runs away and one you can defend. One note first: how much you get out of this varies from one company to the next. The figures below are there to illustrate the point, not to promise a result.
The levers at a glance
Before the detail, here is the short version. Each lever stands on its own, and you rarely need all seven at once. Start at the top. Shelfware and poor contracts almost always pay off fastest.
| Lever | What it is | Effort | Impact |
|---|---|---|---|
| Kill shelfware | Find and cancel unused licences | Low | High |
| Subscription vs perpetual | Match the model to how long you use it | Medium | Medium to high |
| Used licences | Legally transferred second-hand licences | Low | Medium to high |
| Consolidate | Merge duplicate tools, standardise | Medium | Medium |
| Renegotiate renewals | Check prices, defuse auto-renew | Low to medium | Medium to high |
| Reclaim & reassign | Reuse freed licences instead of buying new | Medium | Medium |
| True-ups & metrics | Control back-charges and counting rules | Medium to high | High where risk exists |
1. Kill shelfware
Shelfware is the quickest win. It means licences you own and pay for that nobody actually uses. It builds up on its own: an employee leaves, their licence stays. A project ends, the tool keeps running. A bundle gets bought even though only half the modules are needed. On subscription models you pay for these dead seats every single month.
Here is how to tackle it. For each application, pull a list of assigned licences next to real usage. Many vendor portals show the last login. Anything cold for months goes on the review list. Then revoke or cancel in waves, not all at once, and watch to see if anyone speaks up. To illustrate: if 18 out of 100 licences have not been touched in six months, that is the first line item to cut.
Tip
Usage is not the same as logging in. Someone can sign in daily and still use only one feature that a cheaper edition would cover. Don't just check whether a tool is used, check how much of it is.
2. Right-size subscription versus perpetual
The subscription won out because it is convenient and keeps the barrier to entry low. Convenient does not automatically mean cheap. For changing or short-term demand a subscription is ideal, because you can scale up and down. For software you run steadily over years, a perpetual licence can end up considerably cheaper.
The mistake sits in the comparison. Many people look at the monthly price and miss the total across the planned period. Work out both models over the time you genuinely need the software. A subscription usually carries annual price rises; a perpetual licence often has optional maintenance costs. Only then is the comparison fair.
| Model | Year 1 | Years 2–5 | Total over 5 years |
|---|---|---|---|
| Subscription (per seat) | €240 | 4 × €260 | €1,280 |
| Perpetual + maintenance | €700 | 4 × €120 | €1,180 |
| Perpetual without maintenance | €700 | €0 | €700 |
The numbers above are invented and only there to illustrate. The point is the pattern: with long, stable use the seemingly cheap monthly price flips against you. With short or uncertain use, the subscription wins. Decide per application, not across the board.
3. Use legally transferred used licences
Used software licences are one of the most underrated levers. In the EU, resale is expressly permitted under the case law of the European Court of Justice, as long as the transfer is clean and the seller stops using their copy. Especially for perpetual licences of established programs, prices often sit noticeably below new ones.
What matters is the chain of evidence. Without clean documentation of origin and transfer, the low price does you little good, because the paperwork is missing when an audit comes. That is exactly what we watch for when trading: a legally sound transfer with proof, so the saving still holds years later. There is more on this in our guide to used software.
Caution
Not every "used" offer is above board. Steer clear of split volume packages with no clean documentation, or licences with no traceable origin. A bargain that fails an audit turns out to be the most expensive option of all.
4. Consolidate and standardise tools
In many companies three tools run for the same job because different teams each decided independently. That costs twice: once on licences, once on maintenance, training and administration. Consolidating means capturing the sprawl and bringing it onto a common line.
Start with an inventory. Which categories show up more than once? Where do features overlap? Often a suite you already licence can cover a job that a separate extra tool is being paid for alongside. Standardising also brings bargaining power: one vendor with 200 seats gives you better terms than five vendors with 40 each.
- Identify duplicate tools for each job
- Use suites you already own fully before adding anything new
- Agree on one standard per category
- Pool volume to negotiate better
5. Renegotiate renewals, defuse auto-renew
Automatic renewal is convenient for the vendor and expensive for you. Contracts roll over quietly, often with a price bump, and nobody negotiated. The lever is simple, yet constantly missed, because the dates slip past unnoticed.
Build a calendar with every cancellation and renewal deadline. Set a reminder 60 to 90 days ahead, so you still have room to negotiate. Ask actively for discounts, flag reduced demand, get a competing quote. And check whether automatic renewal is even in your interest, or was simply set up for convenience.
| Topic | The question you ask |
|---|---|
| Demand | Do we still need every seat the contract lists? |
| Price | How big is the increase against the last period? |
| Deadline | By when must we cancel or reduce? |
| Alternative | Is there a competing quote or a used option? |
| Lock-in | Does the renewal tie us in longer than needed? |
6. Reclaim and reassign licences
This is where software asset management earns its keep. Instead of buying more the moment new demand appears, you reclaim freed licences from your own stock and reassign them. It sounds obvious, yet it is rarely done systematically, because the overview is missing.
The routine: when someone leaves, their licence is not forgotten but pulled back and placed in a pool. When new demand arrives, you reach into that pool first, before ordering a new licence. For larger estates it pays to tie this to the HR process. Build clean licence management and you save not once, but continuously.
Key takeaways
- Shelfware and contracts almost always deliver results fastest.
- Compare subscription against perpetual over real usage, not the monthly price.
- Legally transferred used licences cut costs with no compliance risk.
- A pool of reclaimed licences saves money on every new request.
7. Review true-ups and metrics
The last lever is the most technical and often the most consequential. Large contracts reconcile once a year against what you actually used, the so-called true-up. Anyone who does not understand the counting rules pays extra without knowing why. And licence metrics are rarely intuitive: sometimes per user, sometimes per device, sometimes per processor core, sometimes per concurrent access.
Check how each important contract counts, and match it against your reality. Are you paying per device even though many users share one? Are virtual machines being counted twice? Details like these decide four- or five-figure back-charges. Before you sign a true-up, a close look pays off, with expert support if needed.
Tip
Keep your own count throughout the year instead of relying on the vendor's numbers only at true-up time. If you can do the maths yourself, you negotiate as an equal and avoid nasty surprises.
Checklist: uncover your savings
This list is the quick way in. What you can tick off here is already handled. What stays open is your next lever.
- Usage data per application is available and current
- Unused licences are identified and being cancelled
- Subscription versus perpetual is calculated for long-lived software
- Used licences considered as an option for suitable programs
- Duplicate tools captured per job category
- All renewal and cancellation deadlines in the calendar
- Auto-renew consciously confirmed or switched off
- A process for reclaimed licences tied to staff departures
- Licence metrics and true-up counting understood and checked
You don't have to take on everything at once. Tackle the top three levers, do them cleanly, and you will see the effect on the next invoice. The rest follows once the overview is in place. And if you are unsure at any point whether a switch or a used licence pays off, that is exactly what we are here for, vendor-neutral and with no sales pressure.
Frequently asked questions
How much can you realistically save on software costs?
It depends heavily on how tidy your licence position is today. Where shelfware has piled up and contracts have never been questioned, double-digit percentages are common. Where things are already well managed, it is more about fine-tuning. A serious figure only comes after looking at what you own and what you actually use, not as a blanket promise upfront.
What is shelfware and why does it cost money?
Shelfware is licences you own and pay for but nobody uses. It builds up through staff turnover, overestimated demand, or bundles where modules were bought along for the ride. On subscriptions you keep paying for it every month. The first lever is almost always to find these unused licences and switch them off.
Is a subscription or a perpetual licence cheaper?
It depends on how long you use the software. A subscription is flexible and good for changing or short-term demand. A perpetual licence can pay off over several years if you run the software steadily for a long time. Work out both options across your planned period instead of trusting the lower monthly price.
Are used software licences legal?
Yes. Trading in used software licences is permitted in the EU under the case law of the European Court of Justice, provided the transfer is properly documented and the previous owner stops using their copy. Done right, used licences often save noticeably against new ones with no compliance risk.
We trade in software licences on a vendor-neutral basis: new, volume and legally transferred used. Plus licence management, compliance and honest advice, with no sales talk.
