Licensing can take on many forms: development license for your custom applications, supporting programs that power the business, individual user licenses, site licenses, etc. Things you usually track as a part of your software asset tracking when it comes to what gets renewed when and how many seats are being used.

When you look at closing a deal, do you know what what and how they’ll increase or if there’s a grace period?

When acquiring a new book of business, you get the full ballooning effect: new software, new employees, and customers. Some companies may provide a transition period, and others will see dollar signs.

Part of the transition is temporary and may impact the licenses you already have from the headcount perspective. Think of it as increasing the number of employees by X amount. Regardless of whether the acquired company’s platform shares your environment.

The other part deals with the close. Where will the extra headcount factor in? How much duplication exists with both companies? What does the final consolidation look like?

One of the goals post acquisition usually looks at synergies and minimizing duplicate resources. Yet when looking at a target company, are you factoring in the short term impact into your budget along with the longer term goals?

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