License managers protect software vendors from losses due to software piracy and enable end-user organizations to comply with software license agreements.
A license manager is different from a software asset management tool, which end-user organizations employ to manage the software they have licensed from many software vendors.
An additional benefit of these software management tools are that they reduce the difficulty, cost, and time required for reporting and can increase operational transparency in order to prevent litigation costs associated with software misuse, as set forth by the Sarbanes-Oxley Act.
[1][2] License management solutions provided by non-vendor companies are more valuable to the end-users, since most vendors do not provide enough license usage information.
A vendor license manager provides limited information, while non-vendor license management solutions are developed for end-users in order to maximally optimize the licenses they have.