This is my latest article, “Soft Audits, Hard Consequences: The Danger of Soft Audits”, published in Big Data Quarterly and co-authored with Don Sullivan. At LicenseFortress, we’re seeing an increasing number of companies reach out to us after inadvertently triggering formal audits—simply by answering what seemed like harmless vendor questions. These “soft audits” can lead to serious consequences when sensitive information is disclosed prematurely. It’s a topic every organization should understand. Here’s a brief excerpt from the article:
In April 2022, we composed an article titled, “The Weaponization of Software License Audits.” It focused on how software license audits have long been used as a successful, revenue-generating tool for software vendors. Gartner has noted that vendor-driven, revenue-motivated audits are on the rise across all industries and company demographics.
Gartner also noted that the percentage of revenue generated by the software companies when using this technique is increasing dramatically. Publications such as InfoWorld and CIO confirm this trend, emphasizing the increasing frequency and aggressiveness of audits. Software vendors constantly update their audit playbooks to streamline the process and accelerate revenue.
The Fine Print—Understanding Software Audit Rights, on Both Sides of this Brutal Playing Field
As we have consistently emphasized during the last decade, vendors have the right to protect their intellectual property. Vendors also have the right and the fiduciary responsibility to their shareholders to maximize profitability. Patents exist to encourage and reward innovation by granting inventors exclusive rights for a limited time, helping them recoup investments.