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8 Signs You’re About To Be Audited For Non-Compliance

Oracle Software Audits, Microsoft Software Audits and IBM Software Audits can be challenging, time consuming and expensive.  Preparation is the key factor.  If these items apply to your organization, it’s likely you could soon be audited for non-compliance.

1. Merger, Acquisition or Divestment

Software companies like Oracle, Microsoft and IBM know that tracking software assets can be difficult during a merger, acquisition or divestment. When databases get merged and assets combined, licenses are often the last thing on IT staff’s list of tasks. While everyone is focused on getting critical business systems online, software companies take the moment of weakness as an opportunity to audit their clients.

2. Backed out of a purchase

If you recently negotiated a purchase with a software vendor, but then declined to finalize the deal, you are very likely about to be audited. Vendors may assume that you still need those licenses and subscriptions, and that you are trying to avoid paying for them. Unless you are working with a licensing specialists and have complete documentation for your entire environment, an audit is very likely in your near future.

3. Past Noncompliance

If you’ve been audited in the past, you are a prime target for future audits. Some software vendors like Oracle, IBM and Microsoft may audit companies in as little as 18 months from their last audit. During a software audit, compliance teams may look to see if your organization is setting up a system or process for license management.

4. No License Management

If a software vendor is conducting an audit, and they see that the target company is not planning for the future by setting up a process, team or outside consultant to oversee the licenses and subscription management of an organization, they may mark that client for future audits. Not having a license management specialist in place is a sign of vulnerability which vendors may exploit.

5. Reports of Organization Instability

Are there press reports or industry journalists reporting a rising level of instability within your organization? Software vendors have learned that executive departures, office relocations, downsizing or rapid growth are all signs of likely non-compliance at an organization. These red flags may often trigger a software audit.

6. Your Rep is suspicious

Software vendors like Oracle, IBM and Microsoft have trained their sales reps to look for suspicious behavior at the organizations in their territories. If your sales rep is calling you and asking you a lot of questions about your environment, this is frequently a sign of an incoming software audit.

7. Virtualization or Cloud

If you’re organization is looking to move to the cloud or using virtualization, the chances of a software audit greatly increase. There are many complex and ever changing rules regarding virtualization, having to do with processors, cores and server counts. When you factor in virtualization in the cloud, even more rules apply. While companies often employ these technologies to reduce costs, they can lead to audits that cost more in the long term.

8. Your Licensing Expert Leaves

Did your licensing expert just leave the company? If so, your software vendor probably knows. License compliance teams at software vendors like Oracle, Microsoft and IBM keep track of how your organization is managing its licenses and renewals. Using outside consultants is a common strategy used by many large enterprise clients as a way of avoiding audits when personnel changes.

With proper experts managing your licenses and compliance, organizations can be well prepared for the inevitable software license audit.  Miro can help your organization with software audit compliance, license management, subscription management and cloud services.  Contact Miro today if you’re facing a software audit or want to know if you’re ready to be audited.  Our experts can review your environment and let you know if you’re out of compliance or paying too much for licenses and subscriptions.

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If you have an urgent question regarding your software licensing or a software audit, please contact Miro right away.

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About Us

Miro is a leading global provider of software asset management services, specializing in license management, audit advisory, negotiation tactics, support management, and cloud services. We help our clients maximize ROI on their software license investments, stay in compliance, and minimize the impact of audits. Miro's performance guarantee promises that our long-tenured, diverse, and passionate team of expert analysts provides insightful and actionable advice to help our clients achieve the best possible outcomes.