What is Software Metering?
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Key Takeaways
Software metering is the practice of tracking when, how often, and by whom software applications are used across an organization
Metering provides the usage data essential for license optimization, compliance verification, and cost reduction
Organizations typically achieve up to 40% software savings when they combine metering with active license management
Key metrics include execution frequency, active usage time, last-used dates, and user context
Software metering differs from software inventory: inventory tells you what is installed, metering tells you what is actually used
Certero for SAM delivers comprehensive software metering through its AppsMonitor module, with 97% of customers recommending the platform
What is Software Metering?
Software metering is the automated process of monitoring and recording software usage across an organization's IT environment. It answers critical questions that software inventory alone cannot:
Is the software actually being used?
How often is it used?
Who is using it?
When was it last used?
While software inventory tells you what applications are installed on devices, metering reveals whether those installations represent active, productive use or unused shelfware consuming license budget.
The fundamental insight: You cannot optimize what you cannot measure.
Why Software Metering Matters
The Problem of Shelfware
Industry research consistently shows that 20-40% of installed software goes unused in typical enterprise environments. This unused software, often called "shelfware," represents:
Impact Area | Consequence |
|---|
Impact Area | Consequence |
|---|---|
Wasted license spend | Paying maintenance and subscription fees for software nobody uses |
Over-purchasing | Buying more licenses than needed based on installation counts rather than actual usage |
Compliance risk | Audit exposure when deployed licenses exceed entitlements |
Renewal inefficiency | Renewing subscriptions without data to justify the cost |
The Value of Usage Data
Software metering transforms license management from guesswork into data-driven decisions:
Cost Optimization
Identify unused licenses for reclamation or non-renewal
Right-size subscriptions based on actual usage patterns
Justify software investments with usage evidence
Negotiate renewals from a position of knowledge
Compliance Assurance
Match license type to actual usage (e.g., "light user" vs. "full user" licenses)
Verify concurrent user license compliance
Support audit defense with usage evidence
Identify unauthorized software installations
Operational Efficiency
Automate license harvesting based on inactivity
Plan application rollouts using adoption metrics
Measure ROI on software investments
Inform software standardization decisions
How Software Metering Works
Data Collection Methods
Modern software metering platforms collect usage data through several mechanisms:
Agent-Based Metering
Software agents installed on endpoints monitor application execution in real-time:
Data Captured | Description |
|---|
Data Captured | Description |
|---|---|
Executable name | Which application files are running |
Execution time | When the application starts and stops |
Active usage time | Time the application has focus (not just running in background) |
User context | Which user account launched the application |
Device context | Which machine the application ran on |
Advantages: Most comprehensive data, captures usage patterns over time, works for remote devices
Process Monitoring
Operating system process monitoring tracks running applications:
Windows Event Log integration
Process enumeration and tracking
Service monitoring
File System Monitoring
Tracks executable file access:
Last access timestamps
Execution frequency
File version information
Key Metering Metrics
Metric | What It Measures | Why It Matters |
|---|
Metric | What It Measures | Why It Matters |
|---|---|---|
Execution count | Number of times an application was launched | Indicates popularity and adoption |
Total run time | Cumulative time the application was running | Shows overall usage volume |
Active usage time | Time with application in focus (foreground) | Distinguishes active use from background processes |
Last used date | Most recent execution | Identifies candidates for reclamation |
User count | Unique users who launched the application | Determines actual license requirement |
Peak concurrent | Maximum simultaneous users | Critical for concurrent license compliance |
Metering Workflow
Software Metering vs. Software Inventory
Understanding the distinction between inventory and metering is essential for effective Software Asset Management.
Aspect | Software Inventory | Software Metering |
|---|
Aspect | Software Inventory | Software Metering |
|---|---|---|
Question answered | "What is installed?" | "What is being used?" |
Data captured | Application name, version, installation date | Execution time, frequency, user, last-used |
Frequency | Periodic scans (daily, weekly) | Continuous monitoring |
License optimization | Identifies deployments | Identifies waste |
Audit defense | Shows what's deployed | Proves usage justifies licenses |
Both capabilities are required for comprehensive Software Asset Management:
Inventory establishes the deployment baseline
Metering reveals which deployments are actually needed
Together they enable accurate Effective License Position (ELP) calculation
License Optimization Through Metering
Identifying Unused Licenses
Software metering enables automated identification of reclamation candidates:
Inactivity Thresholds
No usage in 30 days: Flag for review
No usage in 60 days: Candidate for reclamation
No usage in 90 days: Strong reclamation candidate
Example Scenario:
Organization has 500 Microsoft Visio licenses
Metering shows only 280 users accessed Visio in the past 90 days
220 licenses are candidates for reclamation or non-renewal
Potential savings: 44% of Visio license costs
Right-Sizing License Types
Many software products offer multiple license tiers based on functionality:
License Tier | Usage Pattern | Cost |
|---|
License Tier | Usage Pattern | Cost |
|---|---|---|
Full/Professional | Daily heavy use | Highest |
Standard | Regular use | Medium |
Basic/Light | Occasional use | Lowest |
Metering reveals actual usage patterns, enabling right-sizing:
Users averaging 2 hours per month don't need Professional licenses
Heavy users may need upgraded licenses for additional features
Inactive users can be moved to on-demand or pay-per-use models
Concurrent License Compliance
For software licensed by simultaneous users rather than named users, metering is critical:
Peak concurrent monitoring ensures:
License count covers actual peak usage
No compliance gaps during high-demand periods
Optimization opportunities when peaks are lower than licensed
Software Metering for Audit Defense
Software vendors increasingly use metering data during license audits to verify compliance.
How Vendors Use Metering
Vendor | Metering Consideration |
|---|
Vendor | Metering Consideration |
|---|---|
Microsoft | Usage data for license optimization discussions |
Oracle | Named User Plus verification through access logs |
SAP | User activity analysis for license type assignment |
Adobe | Active user counts for subscription true-ups |
Building Your Defense
Organizations with robust metering capabilities can:
Demonstrate compliance proactively before audits
Challenge vendor claims with independent usage data
Justify license counts with evidence of actual need
Negotiate settlements based on documented usage patterns
Best practice: Maintain 12-24 months of metering history for audit defense.
Common Software Metering Challenges
Challenge 1: Data Volume
Modern enterprises may track thousands of applications across tens of thousands of devices, generating massive data volumes.
Solution: Automated aggregation and intelligent filtering to focus on licensed software, not every executable.
Challenge 2: User Privacy
Detailed usage tracking raises privacy concerns, particularly in regions with strict data protection regulations.
Solution: Configure metering to track application-level data without capturing screen content, keystrokes, or personal communications. Ensure compliance with GDPR and local regulations.
Challenge 3: Background Processes
Some applications run continuously in the background (e.g., security tools, communication clients), distorting usage metrics.
Solution: Distinguish between "running time" and "active usage time" by monitoring application focus and user interaction.
Challenge 4: Terminal Services and VDI
Shared desktop environments complicate per-user metering.
Solution: Use user-aware metering that tracks individual sessions within multi-user environments.
Challenge 5: Cloud and SaaS Applications
Traditional metering focuses on installed software. Cloud-based applications require different approaches.
Solution: Combine endpoint metering with SaaS management capabilities that track browser-based and API-based application access.
Software Metering Best Practices
1. Define Metering Scope
Not every executable needs metering. Focus on:
Licensed commercial software (the cost optimization opportunity)
High-cost applications (largest savings potential)
Compliance-critical software (audit risk)
Redundant applications (standardization candidates)
2. Establish Usage Baselines
Before making optimization decisions:
Collect at least 60-90 days of usage data
Account for seasonal variations (month-end, quarter-end peaks)
Identify legitimate low-frequency use cases (annual processes, emergency tools)
3. Automate License Harvesting
Configure policies to automatically reclaim licenses based on inactivity:
4. Integrate with License Management
Metering data should flow directly into:
Effective License Position (ELP) calculations
License reconciliation reports
Renewal planning workflows
Procurement approval processes
5. Review and Act Regularly
Schedule monthly or quarterly reviews of:
Unused license reports
License harvesting candidates
Usage trend analysis
Optimization recommendations
How Certero Delivers Software Metering
Certero for SAM includes comprehensive software metering through the AppsMonitor module, providing the usage intelligence organizations need for license optimization.
AppsMonitor Capabilities
Capability | Description |
|---|
Capability | Description |
|---|---|
Application usage tracking | Monitors execution time, active usage, and user context |
Metered file management | Configurable list of applications to meter |
User-level reporting | Usage data by individual user for license assignment |
Device-level reporting | Usage aggregated by machine for deployment optimization |
Historical analysis | Trend reporting over configurable time periods |
Integration with ELP | Usage data feeds directly into compliance calculations |
How It Works
Client agents installed on Windows and macOS devices monitor application execution
Usage data is collected continuously and uploaded to the central platform
AppsMonitor module aggregates and normalizes data across all endpoints
Reports and dashboards reveal usage patterns, inactive licenses, and optimization opportunities
Automated recommendations identify candidates for license reclamation
Supported Platforms
Windows: Full agent with comprehensive metering
macOS: Native agent with usage tracking
Linux: Agentless inventory (metering via other methods)
Proven Results
Certero delivers measurable value through software metering and license optimization:
Up to 40% savings on software spend through usage-based optimization
#1 rated on Gartner Peer Insights for Software Asset Management
97% of customers recommend Certero
Four-time Gartner Customers' Choice winner (2019, 2020, 2021, 2024)
Organizations using Certero for SAM gain visibility into actual software usage, enabling data-driven decisions that reduce costs and ensure compliance.
Frequently Asked Questions
What is the difference between software metering and software inventory?
Software inventory tells you what applications are installed on devices across your organization. Software metering goes further by tracking whether those installations are actually being used, how often, by whom, and when they were last accessed. Inventory answers "what do we have?" while metering answers "what do we use?" Both are essential for effective Software Asset Management.
How much data does software metering collect?
Modern metering solutions focus on application-level data: which applications run, when they start and stop, active usage time, and user context. They do not typically capture screen content, keystrokes, or personal communications. Organizations should configure metering policies to balance optimization needs with privacy requirements and regulatory compliance.
How long should we keep metering data?
Best practice is to maintain 12-24 months of metering history. This provides sufficient data for usage trend analysis, audit defense, seasonal pattern identification, and renewal planning. Most software licensing audits request usage data covering the previous 2-3 years, so longer retention supports audit readiness.
Can software metering help with cloud and SaaS applications?
Traditional endpoint metering focuses on installed software. For cloud and SaaS applications, organizations need complementary SaaS management capabilities that track browser-based access, single sign-on (SSO) logs, and API-based integrations. Platforms like Certero provide both endpoint metering and SaaS discovery to cover the full application landscape.
What is license harvesting?
License harvesting is the process of reclaiming unused software licenses from devices where the software has not been used for a defined period (typically 60-90 days). The reclaimed licenses can then be reassigned to users who need them or retired to reduce license counts at renewal. Software metering provides the usage data that enables automated license harvesting.
How does metering support vendor audits?
During software audits, vendors may challenge whether you actually need all the licenses you claim. Metering data provides evidence of actual usage to justify your license position. It can also identify compliance gaps before audits occur, allowing proactive remediation. Organizations with robust metering history are better positioned to negotiate audit outcomes.
Related Resources
What is Software License Management? - Understanding license compliance and optimization
What is an Effective License Position (ELP)? - The core compliance metric
What is IT Asset Management (ITAM)? - The broader asset management discipline
Certero for SAM Solution Overview - Detailed capabilities and features
About Certero
Certero delivers next-generation AI-powered Hybrid IT Asset Management through CerteroX, the unified platform for ITAM, SAM, SaaS, Cloud, and AI management. As the #1 rated solution on Gartner Peer Insights and four-time Customers' Choice winner, Certero helps organizations gain visibility and control across their entire IT estate.
Founded in 2007 and trusted by organizations in 30+ countries, Certero provides the software metering, license management, and compliance capabilities that enable organizations to optimize costs while maintaining audit readiness.
Learn more: https://www.certero.com
Last updated: February 2026