With the increase in compliance activity that is going on in the business world, is there anything that you can do to avoid a license compliance event in the future? Not really, short of not buying software to help run your business, but who can afford to do that? Vendor compliance audits are fast becoming inevitable for mid- to large-sized companies. For the vast majority of organizations, the question is not if you get audited, but how many times and that larger organizations get audited more often.
The License Compliance Review process of vendors and auditors is broken out into 5 phases. Due to the flexible nature of the review process, not all reviews will go through all phases and may actually skip certain phases. All reviews begin with the Identification/Investigation Phase. The potential review candidates then go through the Internal Notification Phase. The approved review candidates then go through the Customer Notification Phase. During the Customer Notification Phase, some audits may be dropped, while most others will transition either to the Audit Phase (an actual audit – either a self-audit or an audit conducted by an independent auditor) or jump directly to the Settlement Phase. Each of these phases is described below in more detail.