What Is Software Inventory?

A software inventory consists of all the software and applications used within an IT environment. The process of keeping a record of a software inventory is called software inventory management. Along with hardware inventory management, software inventory management is part of IT asset management, enabling the recording of various data related to software installations.

A typical software inventory management process keeps a record of the number of software installations, corresponding installation dates, the type of software installed, expiry and license renewal dates, and sometimes even the total monetary worth of the installed software.

Software Inventory Management Versus Inventory Management Software

Software inventory management tools are often confused with inventory management software. Whereas software inventory management is part of IT asset management, inventory management is an element of supply chain management. It is the management of inventory and stock, including aspects such as controlling and overseeing ordering inventory, storage of inventory, and others.

What Are the Advantages of Software Inventory Management?

Software inventory management is the answer to the growing complexity of the software market. With the proliferation of cloud-based enterprise software solutions and subscription-based licensing models, even relatively small companies often find it difficult to keep track of their software assets.

A failure to comply with license agreements may prompt a software audit, which may have far-reaching consequences. Instead of risking a software audit, it makes sense to invest into a robust software inventory management solution capable of automating the entire process of software asset tracking.

Some of the best software inventory tools have integrated software monitoring capabilities that allow them to automatically detect and track all software installations within an IT environment. Most software monitoring tools can generate detailed reports and send alerts in case of incoming software license expirations.

As such, software inventory tools should be an integral part of any wider IT asset management strategy. A well-implemented software inventory management process can save the company a significant amount of time by automating what would otherwise be a time-consuming process that would most likely become a responsibility of the IT department.