A Guide to Buying Original Software for Companies: How to Stay Safe and Avoid Licensing Wrongly?

When the company started search for software licenses, price shouldn't be the only consideration. Software should meet technical requirements, have clear usage rights, come from a trusted purchasing channel, and use the appropriate licensing model.

Purchasing the wrong license not only increases your budget, but can also lead to deployment, renewal, and even license compliance issues.

What to Check Before Buying Software?

• Determine needs based onuser, device, server, core, atau workload, not just the name of the software.

• Compare minimum2–3 packages or editionsif the vendor provides several options.

• Calculate the usage fee for1–3 years, especially for subscriptions.

• Make sure there are purchase documents such as invoices, order confirmations, or license entitlements.

• Before search for software licenses, check software compatibility with the company's IT environment.

Start from Needs, Not from Products

A fairly common mistake is deciding on the software first, and then finding out if the product is suitable.

A safer way is to createrequirement mapping.

For example, if a company needs software for 100 users, don't immediately purchase 100 licenses. First, check whether all users require the same features.

It could be that 70 users are sufficient with the Standard package, while only 30 users need the Advanced features.

Moment search for software licenses, mapping like this can preventover-licensingand help companies choose packages more efficiently.

Understand How Vendors Calculate Licenses

Each vendor can have a different licensing model. Software Asset Management itself encompasses software purchasing, deployment, usage, compliance, and lifecycle management.

Some common models include:

• Per User– based on the number of users.

• Per Device– based on device.

• Per Core/Processor– often found on servers and databases.

• Concurrent User– based on the number of users accessing simultaneously.

• Subscription– right of use during the subscription period.

• Perpetual– the right to use a particular version continuously according to the vendor's terms.

Therefore, when search for software licenses, don't just ask "how much does 1 license cost?". A more appropriate question is“1 license gives the right to use what?”

For enterprise products, licensing rules can even differ based on deployment, technology, or product combination. Microsoft, for example, provides specific guidance for various commercial licensing scenarios, including servers, desktops, and virtualization.

Subscription or Perpetual?

For subscriptions, companies need to calculateTotal Cost of Ownership (TCO).

For example, a subscription of IDR 5 million per user per year for 20 users would cost IDR 100 million per year, or IDR 300 million over three years if the price and number of users remain unchanged.

Moment search for software licenses, compare that figure with alternative packages, multi-year contracts, or perpetual licenses if the vendor still offers them.

Don't forget to check the renewal fee. The first year's price may not be the same as the following year's.

Make Sure the License Source Can Be Verified

Original software should be purchased through a vendor or sales channel that can be accounted for.

Before search for software licenses, make sure the following information is available:

• vendor and product name;

• edition or package;

• SKU if available;

• number of licenses;

• periode subscription;

• license metric;

• activation mechanism;

• transaction documents.

This is crucial because proper license management requires accurate inventory and entitlement records. SAM practices also help companies reduce unnecessary purchases while ensuring compliance with license terms.

Checklist Before Creating PO Software

• Specify the actual number of users or devices.

• Identify the features that are really needed.

• Check OS, server, and infrastructure compatibility.

• Define license metric.

• Compare available packages.

• Calculate TCO for at least 1–3 years.

• Check the renewal period and mechanism.

• Make sure the entitlement documents are available.

• Moment search for software licenses, reconfirm the SKU and quantity before the PO is issued.

FAQ

How to ensure that the software you buy is original?

Check the purchase source, activation mechanism, invoice, subscription or license entitlement, and the vendor's official portal if available.

Is original software definitely suitable for the company?

Not necessarily. The software could be genuine, but its edition or license metrics don't meet the company's needs.

Is the cheapest license always more profitable?

No. At the moment search for software licenses, consider features, renewals, support, upgrades, and TCO, not just the initial price.

How many licenses should I purchase?

Align with the license metric. If it's based on named users, count the users who need access. If it's based on core or server, map the infrastructure first.

What are the risks of purchasing too many licenses?

Budgets become inefficient. SAM can help identify unused licenses and optimize future purchases.

Is an invoice alone sufficient to prove a license?

Invoices are important, but companies should also retain order confirmations, contracts, license keys, subscription IDs, or other proof of entitlement from the vendor.

When should a company prepare for renewal?

Ideally start the review30–90 days before expiryso that there is time to evaluate quantity, package, budget, and procurement process.

Ultimately, purchasing genuine software is more than just getting a license key. Companies need to ensureproduct, package, quantity, license metric, deployment, and its documents according to the needs.

Before search for software licensesPerform requirements mapping and TCO calculations. Afterward, ensure licenses are purchased through a verifiable channel. This process allows companies to obtain software that is more secure, efficient, and easier to manage during renewals and audits.