Software Licence Utilisation Rate
Percentage of purchased software licences actively used
What is Software Licence Utilisation Rate?
Software licence utilisation rate is the percentage of purchased licences that are actively used. It shows how much software spending is actually being put to work.
Unused licences are wasted money, so tracking utilisation helps cut costs and right-size purchases.
How this KPI is measured
- Function
- Information Technology
- Sub-function
- IT Cost Management
- Industry
- All Industries
- Type
- Lagging
- Impact
- Efficiency
- Unit
- %
- Measurement frequency
- Quarterly
- Formula
- (Active licences in use / Total licences purchased) × 100
How to calculate it
Divide active licences in use by total licences purchased, and multiply by 100.
For example, if 700 of 1,000 licences were in active use, utilisation is 70%.
Define active, for example used in the last 30 or 90 days, and review by product, since some tools are used rarely by design.
Where it is used
Cutting software cost
Remove unused licences.
Right-sizing renewals
Buy what is needed.
Finding training needs
See who is not using tools.
How to improve it
Tips and common mistakes
- Some licences, such as occasional-use tools, will always have lower use.
- Check contract terms before reducing.
- Review at least annually.
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