If companies are unsure how many licenses of a software product they have and where they are deployed, this can lead to their company using software that is unlicensed. Even though these infringements may be accidental, businesses still risk litigation. The increasing availability of illegal software on-line has made it even more difficult to manage software effectively.

In addition to copyright infringement and security breaches, good software management will prevent unexpected software costs that can be incurred from ad hoc attempts to address licensing shortfall. It also provides a simple, accurate method of supplying an up-to-date software status when the business needs it, for instance year-end accounting or during the due diligence phase of merger or acquisition activity.