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What Is Licence Harvesting and Why It Matters for Cost-Savvy Organisations

Licence Harvesting, Man on Computer Analysing Data

Many organisations invest heavily in software, particularly specialist engineering tools or technical suites, but too often those licences remain under-utilised. Licence Harvesting changes that: it’s the process of reclaiming idle software licences and reallocating them to active users. This not only trims IT spend, it transforms licence management from static ownership into dynamic optimisation.

 

Defining Licence Harvesting

Licence Harvesting is a proactive Software Asset Management (SAM) approach that identifies licences which are unused, or barely used, and retrieves them for reallocation. It keeps your licence pool lean and your procurement efficient.

Rather than continually buying new licences, organisations can recycle existing ones, reducing waste and strengthening governance.

 

Why Harvesting Licences Is Essential

  • Reduce Software Spend & Avoid Waste
    Under-utilised licences often remain hidden, quietly draining budgets. Research suggests wasted software spend can amount to 20–25% of overall software budgets.

  • Improve Access & Productivity
    Reclaiming idle licences means fewer project delays when colleagues are waiting for access.

  • Strengthen Compliance & Governance
    Harvesting supports audit readiness and reduces the risk of non-compliance.

  • Support Better Decision-Making
    Licence use data informs renewals, contract negotiations, and long-term software strategy.

 

How Licence Harvesting Works

Licence Harvesting begins by monitoring how applications are actually being used, tracking usage levels, idle time and overall patterns across the organisation. Once you have this visibility, the next step is to define the criteria for harvesting, such as setting inactivity thresholds that determine when a licence should be reclaimed.

Depending on the system in place, licences can either be removed automatically once these rules are triggered, or users can be notified in advance before the licence is returned to the shared pool. Reclaimed licences are then made available for others, eliminating the need to purchase additional seats unnecessarily.

Crucially, harvesting isn’t a one-off exercise. To be effective, it should be a continuous process, ensuring that licence portfolios remain right-sized, cost-efficient, and aligned with business needs.

 

Real-World Example: Cutting Software Spend by 20%

The Challenge
A major energy company relied on costly subsurface and exploration software used by around 150–200 staff. With multiple licence managers in play, they lacked visibility and needed to cut waste whilst enabling innovation.

The Approach
By consolidating usage data into a single, transparent dashboard, IT and business users could finally see where licences were being under-utilised. This enabled collaboration on smarter allocation and harvesting strategies.

The Outcome
Through harvesting and reallocation, the organisation achieved a 20% reduction in subsurface software costs, freeing budget for other business-critical investments.

 

Key Benefits at a Glance

StageWhat Happens
1. Cost EfficiencyReduce unnecessary spend by recycling unused licences.
2. Better UtilisationMaximise ROI on expensive software.
3. Improved ProductivityAvoid delays caused by licence shortages.
4. Compliance ConfidenceStay aligned with vendor agreements.
5. Data-Driven ProcurementMake smarter renewal and investment decisions.

 

Getting Started with Licence Harvesting

  1. Get in touch – Book a discovery call with us to explore your goals and challenges.
  2. Audit Current Usage – Benchmark your software landscape.
  3. Set Clear Policies – Define what “idle” means for your business.
  4. Deploy the Right Tools – Automate detection and reclamation.
  5. Communicate With Users – Frame harvesting as fair access, not restriction.
  6. Pilot and Scale – Test on one software category, prove the savings, then expand.

 

Final Thoughts

Licence Harvesting is more than an IT housekeeping exercise, it’s a strategic enabler. By reclaiming and reallocating unused licences, organisations reduce costs, improve productivity, and stay compliant, all while making software spend go further.

Done well, it shifts licence management from reactive procurement to proactive optimisation, delivering measurable business value.

 

Curious how this service applies to your business? Contact us at enquiries@optimal.world | www.optimal.world

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