Q&A: How to get smarter with software licensing

• Datacom provides tailored, end-to-end licensing support that reduces costs and strengthens compliance.

• Expert consultancy, data-driven insights and strong vendor partnerships deliver better licensing outcomes.

• Datacom helps organisations adapt to cloud-first and consumption-based licensing models with confidence.

Datacom’s Product Solutions Group (PSG) partners with leading hardware, software and IT vendors to deliver tailored solutions that align with each customer’s needs. As New Zealand’s largest dedicated technology product team, PSG brings together more than 100 specialists, including certified licensing experts and experienced software asset management consultants, to provide end-to-end support across the software lifecycle.

Our team supports customers with:

• Expert licensing guidance: Driving cost efficiency, asset optimisation and long-term value
• Cost management: Helping reduce software spend and operational overheads.
• Operational streamlining: Simplifying acquisition, management, usage, and renewal processes
• Thought leadership: Delivering ongoing value through workshops and one-on-one sessions that go beyond licensing
• Compliance and risk mitigation: Ensuring licensing adherence and minimising exposure to compliance risks.
• Data-driven budgeting: Using Insights and analytics to build precise user profiles, supporting more accurate budgeting and financial forecasting.

Rather than taking a one-size-fits-all approach, we tailor our services to meet your organisation’s individual needs. This includes evaluating your existing licensing setup to uncover inefficiencies and opportunities, crafting customised licensing strategies aligned with your business objectives – whether you’re a large enterprise, government organisation or small to medium business – and addressing industry-specific requirements, including regulatory compliance across sectors such as healthcare, education and finance.

In the Tegel case study, Datacom successfully reduced Tegel’s potential 35% cost increase to 17% through a combination of strategic negotiation, expert consultancy and close collaboration. 

By optimising licensing and identifying underutilised assets, Datacom helped achieve savings of up to 50% per licence, significantly reducing overall cost exposure. Data-driven insights and visual tools simplified complex licensing information, enabling faster, more informed decision-making.

Datacom also represented Tegel in multiple negotiation rounds with Microsoft, leveraging strong vendor relationships to secure more favourable terms, while close partnership and clear communication ensured the project was delivered within a tight timeframe and stayed on budget.

Datacom leverages strong partnerships with global software leaders such as Microsoft to deliver greater value for customers. As a Microsoft partner with advanced certifications, Datacom has early access to new technologies, specialist training and co-investment opportunities, enabling faster solution delivery, competitive pricing and expert support.

This close alignment helps customers navigate rising device and licensing costs while gaining maximum value from the latest innovations across cloud, security and productivity platforms.

Businesses often face compliance challenges such as:

• Limited visibility into installed software and usage
• Inadequate planning that can lead to unnecessary costs or audit exposure
• Limited internal expertise, resulting in gaps in implementation

Datacom addresses these challenges through a structured, collaborative approach, regularly assessing license usage against entitlements to proactively identify and resolve discrepancies. We also provide tools and processes that track software usage and ensure alignment with licensing agreements. Datacom offers clear, ongoing guidance on licensing terms, usage rights and best practices to help prevent unintentional non-compliance.

As SaaS, AI and hybrid cloud adoption grows, Datacom is evolving its licensing strategies by using AI and analytics to predict usage patterns, optimise spend and better align costs with business outcomes. Flexible licensing models support hybrid and multi-cloud environments, while a shift away from seat-based pricing toward value and outcome driven models ensures greater transparency and return on investment for customers.

Organisations working with Datacom’s licensing team can expect a clear return on investment through reduced software costs, improved efficiency and lower compliance risk. By optimising licence allocation, negotiating with vendors and identifying underutilised assets, customers have avoided projected cost increases of 10-40%.

There’s a growing trend among software vendors like Microsoft to prioritise subscription and cloud-first licensing models. This is often driven by changes that make traditional on-premises options less attractive, including price increases and shorter product support lifecycles.

At the same time, consumption-based models such as pay-as-you-go and metered usage are becoming more common, particularly in cloud environments. While these models offer greater flexibility and closer alignment with actual usage, they also require strong monitoring and governance to avoid unexpected costs.