Developing an Effective License Position (ELP)

Developing an Effective License Position (ELP) involves comparing usage with entitlement: taking software inventory and comparing it against your license entitlements. When you have developed an ELP, you can use it to identify where your organization is under-licensed (at risk of a compliance audit) or over-licensed (wasting money on unnecessary software purchases).

A video that gives an overview of License Optimizer is available: Conceptual Overview (4:39)

The approach below provides a guide for developing ELPs within License Optimizer. For more information, click the highlighted sections in the diagram below:

Add Install-based Inventory

Import, or manually create install-based inventory

Check Software Teaching for new or unrecognized products

Run recognition







Is install-based inventory complete?













Add usage-based inventory

Import, or manually create, usage-based inventory











Is usage-based inventory complete?













Add License data

Import, or manually create, entitlement

Match entitlement to DSL

Check metrics and paths
(Downgrades, maintenance, etc)







Is entitlement complete?













Run reconciliation













Data Summary







For more information on Reconciliation, see Reconciling liabilities with entitlements.

When you have completed the reconciliation, you can review the reconciliation data from the Data Summary page. If the results are not as expected, look back through the workflow above to determine any possible gaps or issues.