Software Asset Management Best Practices Guide

Overview

This guide provides comprehensive best practices for implementing and managing the Software Asset Management (SAM) Schema v1.0 in Jira Service Management Assets. This schema enables organizations to track software entitlements, monitor installations, calculate compliance positions, and optimize license spend across the enterprise.

Software asset management is fundamentally different from hardware asset management. While physical assets depreciate predictably, software licensing creates dynamic financial and compliance obligations that change with organizational scale, vendor audits, and business transformation. This schema addresses these complexities with purpose-built object types designed for SAM maturity.

Who should read this guide:

• SAM Managers responsible for license compliance and cost optimization
• IT Asset Management (ITAM) teams tracking software across the estate
• Procurement teams managing vendor contracts and renewals
• Finance teams allocating software costs to departments
• Compliance Officers ensuring audit readiness
• IT Operations teams deploying and managing software installations

What you will learn:

• How to effectively use each of the ten object types in the SAM schema
• The purpose and significance of every attribute across all object types
• Effective License Position (ELP) calculation methodologies
• Discovery tool integration strategies for SCCM, Intune, and JAMF
• Vendor audit preparation and response procedures
• License harvesting and optimization techniques
• Cost allocation models for departmental chargebacks

Prerequisites:

• JSM Premium or Enterprise license (Assets requires Premium tier minimum)
• Object Schema Manager or Jira Admin permissions
• Familiarity with basic JSM Assets concepts (object types, attributes, references)
• Understanding of software licensing fundamentals (perpetual vs. subscription, per-user vs. per-device)
• Access to software discovery tools or installation data sources

Schema Architecture

The SAM Data Model

The Software Asset Management Schema implements a layered data model that separates contractual entitlements from actual installations, enabling accurate compliance calculations and optimization opportunities.

                    +-----------------------+
                    |  Software Publisher   |  <- Vendor relationships
                    +-----------+-----------+
                                |
                    +-----------v-----------+
                    |   Software Product    |  <- What you can install
                    +-----------+-----------+
                                |
            +-------------------+-------------------+
            |                                       |
+-----------v-----------+               +-----------v-----------+
|  License Agreement    |               |     Installation      |  <- What you deployed
+-----------+-----------+               +-----------+-----------+
            |                                       |
+-----------v-----------+               +-----------v-----------+
|     Entitlement       |               |        Device         |  <- Where it runs
+-----------+-----------+               +-----------+-----------+
            |                                       |
            +-------------------+-------------------+
                                |
                    +-----------v-----------+
                    |  Compliance Position  |  <- Are you compliant?
                    +-----------------------+

Key Relationships

Reference Types in This Schema

The SAM schema defines four custom reference types that describe licensing and deployment relationships. These reference types provide semantic meaning and visual organization through color-coding in the JSM Assets interface.

Color Coding Rationale:

• Blue (#0052CC): Vendor and publisher relationships
• Green (#00875A): Contractual and entitlement relationships
• Purple (#6554C0): Technical deployment relationships
• Orange (#FF8B00): User assignment and accountability

Effective License Position (ELP)

Calculation Formula

The Effective License Position calculation is the core of software asset management:

ELP = Entitled Quantity - Deployed Quantity

If ELP >= 0: Compliant (or Over-Licensed if ELP is large positive)
If ELP < 0: Under-Licensed by |ELP| units

Per-User Calculation Example

Product: Microsoft 365 E3
Entitled: 500 users (per Entitlement records)
Deployed: 487 users (per Installation count matched to unique users)
Gap: 500 - 487 = +13
Compliance Status: Compliant (13 licenses available for growth)

Per-Device Calculation Example

Product: Adobe Photoshop
Entitled: 50 devices (per Entitlement records)
Deployed: 67 installations (per Installation count)
Gap: 50 - 67 = -17
Compliance Status: Under-Licensed (17 licenses short)

Discovery Tool Integration

Effective SAM requires automated discovery data. Manual tracking is impossible at enterprise scale.

Supported Discovery Sources

Product Normalization

Discovery tools report software with variations. Create normalization rules to match discovery names to Product records:

License Harvesting

Identifying Harvesting Candidates

Find installations with no recent usage for license reclamation:

objectType = "Installation" AND Status = "Active" AND "Last Used" < now(-90d)

Harvesting Workflow

1. Identify: Query discovers unused licenses (90+ days no usage)
2. Notify: Email user/manager about pending reclamation
3. Grace Period: Allow 14 days to respond if software is needed
4. Reclaim: Unassign license or uninstall software
5. Reallocate: Make license available for new requests

Optimization Opportunities

Vendor Audit Preparation

Software vendor audits are common and can result in significant financial exposure. Preparation is essential.

Pre-Audit Checklist

• All agreements documented with agreement numbers
• Entitlement quantities verified against license certificates
• Discovery tools running and current (data less than 7 days old)
• Compliance positions calculated (less than 30 days old)
• Under-licensed positions documented with remediation plans
• Product normalization rules current and accurate
• Evidence of license certificates and purchase orders organized
• Secondary use rights documented and supported by evidence

Audit Response Process

1. Audit Notification: Received formal audit letter from vendor
2. Scope Clarification: Understand exactly what products are in scope
3. Data Compilation: Generate compliance reports from SAM system
4. Legal Review: Engage legal counsel for audit response
5. Vendor Communication: Submit compliance data through proper channels
6. Negotiation: If gaps exist, negotiate resolution terms
7. Documentation: Update SAM records with audit outcomes

Common Audit Triggers

Useful AQL Queries

Find under-licensed products

objectType = "Compliance Position" AND Status = "Current" AND "Compliance Status" = "Under-Licensed"

Find agreements expiring soon

objectType = "License Agreement" AND Status = "Active" AND "End Date" < now(90d)

Find unused installations

objectType = "Installation" AND Status = "Active" AND "Last Used" < now(-90d)

Find entitlements missing critical references

objectType = "Entitlement" AND Status = "Active" AND (Product is EMPTY OR Agreement is EMPTY)

Find installations without product reference

objectType = "Installation" AND Status = "Active" AND Product is EMPTY

FAQ

Q1: How do I handle software that comes bundled with other software?

Answer: Create Product records for each significant component that requires tracking. For example, Microsoft 365 includes Teams, Outlook, Word, Excel, etc. Track at the subscription level (Microsoft 365 E3) not component level. Only create component-level tracking if components are licensed separately.

Q2: How do I track cloud/SaaS subscriptions vs. on-premises software?

Answer: Both use the same schema structure. SaaS: Agreement Type = "Subscription", Metric typically "Per User". On-premises: Agreement Type varies, Metric may be "Per Device" or "Per Core". The schema accommodates both - the key difference is the Metric and Agreement Type values.

Q3: What if discovery tools report software not in my Product catalog?

Answer: Implement a staging process:

1. Import to staging area for unknown products
2. SAM team reviews and categorizes weekly
3. Create Product records for tracked software
4. Flag as "Not Tracked" for consumer or freeware applications

Q4: How do I handle secondary use rights (home use, second device)?

Answer: Document in entitlement Notes and adjust compliance calculations. For example, Microsoft 365 allows installation on 5 devices per user. Some perpetual licenses allow secondary home use. Your compliance calculation should account for valid secondary use.

Q5: How often should I calculate compliance positions?

Answer: Frequency depends on change velocity:

• High-change environments: Weekly
• Stable environments: Monthly
• Pre-audit: Daily during audit period
• Always calculate before any vendor communication

Q6: How do I handle open source software?

Answer: Track open source for compliance with OSS license obligations:

• Create Software Publisher = "Open Source" as umbrella
• Create Product records for tracked OSS
• License Model = "Open Source"
• Agreement Type = "Open Source" (or specific license type)
• Entitlements may be marked "Unlimited" but track usage for obligation compliance

Q7: What is the difference between an Agreement and an Entitlement?

Answer: Agreement is the contract with a vendor (Microsoft EA 2024-2027). Entitlement is specific licenses granted under that contract (500 Microsoft 365 E3 licenses). One Agreement can have many Entitlements for different products. Agreements define terms; Entitlements define quantities.

Related Resources

This guide is part of the Software Asset Management Schema v1.0 documentation suite:

• JSM Forms Specification: Software request forms, installation approvals, and compliance reports
• Governance Playbook: License compliance policies, audit preparation procedures, and data quality standards
• Automation Examples: License expiry alerts, compliance calculations, and usage tracking

For platform documentation:

• Atlassian Assets Documentation
• AQL Syntax Reference
• Assets Import Documentation

For SAM framework references:

• ISO/IEC 19770 SAM Standards
• ITAM Forum
• Microsoft SAM
• IAITAM