Technology Strategy & Roadmaps

Counting the Seats: A One-Afternoon Software License Audit

Most small companies pay for more software seats than people who use them. One January afternoon and three questions usually finds real money and a cleaner stack.

An overhead view of a white desk with a keyboard, tablet, phone, coffee cup and pens.

January is when the renewal notices arrive. Somewhere in the stack is a tool priced per person, bought when the team was bigger or the plans were grander, still billing for seats nobody has logged into since the summer.

This is not a scandal; it is how software works. Vendors make leaving seats in place easy and counting them tedious. But for a small company, a quiet afternoon with the admin consoles can recover a meaningful line item and, just as useful, produce the first honest list of what the business actually runs on.

Key takeaways

  • Per-seat pricing drifts upward: hires add seats, departures rarely remove them.

  • The admin console, not memory, is the source of truth for who actually uses a tool.

  • Last-login dates turn a vague sense into a defensible number.

  • Unused seats are only part of the find; duplicate tools and forgotten trials count too.

  • The output is one page: tool, seats paid, seats used, decision.

Step 1: List every tool with a bill

Start from money, not memory. Pull the company card statements and the AP list for the last quarter and write down every software charge: the big platforms, the nine-dollar utilities, the annual renewals that only appear once a year. Most small companies find twenty to forty names.

This list is valuable on its own. It is the spending half of the tech stack census, and most owners have never seen it written down in one place.

Step 2: Compare seats paid to seats used

For each per-seat tool, open the admin console and find two numbers: how many seats you pay for and how many accounts have logged in during the last ninety days. The consoles almost all show this; it is the column nobody looks at.

Do not argue about edge cases yet. A seat unused for ninety days is a question, not an accusation. Sometimes it is the part-time bookkeeper who logs in quarterly. Sometimes it is someone who left in May.

Step 3: Ask the three questions per tool

For every line: do we still use this, does anything else we pay for already do it, and what breaks if we shrink or cancel it? The second question is where the real savings hide, and it is the same consolidation question worth asking before any new purchase.

The third question keeps the exercise honest. A tool can be underused and still load-bearing. The goal is a decision per line, not a purge.

Step 4: Make the changes and write down the decisions

Downgrade the seats, cancel the zombies, merge the duplicates. Most of it can be done from the same admin consoles in the same afternoon. Where a renewal date makes a change cheaper in March, write the date on the calendar now, next to the second look the January invoices deserve.

Keep the one-page result: tool, seats paid before and after, monthly delta, decision and date. Next January's audit starts from this page instead of from scratch.

Frequently asked questions

How much do companies usually find?

It varies, but a first count commonly turns up a handful of fully unused seats across the stack plus one or two tools nobody can justify. For a small company that often adds up to a few thousand dollars a year.

What about tools people insist they need but barely use?

Mark them as decisions, not deletions. If someone makes the case, keep the seat knowingly. The audit's job is to make the cost a conscious choice rather than an invisible one.

Should this include security tools?

Yes, with care. An unused security seat might mean waste or might mean a gap in coverage, and those are opposite findings. Look at what the tool is supposed to protect before shrinking it.

A practical next step

Block one afternoon this month, start from the card statements, and count seats against last-login dates. If the list is long or the consolidation questions get political, book a Decision-Clarity Call and we will walk the stack together.

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Tyson Martin

Written by Tyson Martin, NACD.DC

Chief Trust, Security & AI Officer. CISO of record at MIO Partners; former CISO & CTO at Lumber Liquidators and Orvis; advisor to 200+ Fortune 500 boards and C-suites at AWS.

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