In short: A licence true-up is the process of comparing the software licences you have bought with actual usage, then adjusting: buying licences for extra users or devices, and, where the terms allow, reducing licences you no longer need. With subscriptions it may happen mid-term, at renewal, or automatically each month when usage is billed in arrears.
What a true-up is
Organisations change constantly. People join and leave, devices are replaced, servers are added and offices open. Licences rarely keep pace on their own. A true-up is the regular check that brings them back into line.
The term comes from older enterprise agreements, where customers deployed software freely through the year and then reported and paid for growth once a year. In the subscription world the principle is the same, but it happens in different ways depending on the term:
- Fixed quantity subscriptions: you buy a set number and add more when needed; a true-up checks the number is right and catches anything deployed beyond it
- Annual commitments: additions are made mid-term and pro-rated to the renewal date; reductions usually wait for renewal
- Usage-based billing in arrears: the vendor counts active users or devices each month and bills for them, so true-up is effectively automatic, though you still need to remove what you no longer use
Why true-ups matter
Under-licensing happens when usage exceeds what you have paid for: more devices running the agent than licences, or more users than seats. Vendors generally require you to licence all use, and many consoles show usage against entitlement. Under-licensing can lead to back-billing and, for security products, unprotected devices if the console stops accepting new ones.
Over-licensing is the more common problem. Licences stay assigned to leavers, retired laptops linger in consoles, and annual renewals roll over last year's numbers without question. On monthly and usage-based terms, every unused licence is money you could save immediately.
Security also benefits. A true-up that finds a device without endpoint protection, or a leaver's account still active, has found a gap as well as a cost.
How to run a true-up
- Gather entitlements: for each subscription, the quantity, edition, term and renewal date.
- Measure usage: active users and devices from each vendor's console, your directory and your device management tool.
- Reconcile: compare the two and list differences, with reasons such as leavers, new starters, retired devices or new servers.
- Clean up first: remove leavers and retired devices from consoles before adjusting licence numbers.
- Adjust: buy licences for genuine growth; reduce where the term allows, or note the reduction for renewal.
- Record: keep a note of the result and the date, which helps at renewal and in any vendor review.
For most small and mid-sized organisations, a quarterly true-up is a good rhythm, with an extra check 60 to 90 days before each annual renewal.
Do not forget products that are not counted by user or device. Backup storage grows quietly as data accumulates, DMARC tools may be licensed by domain, and firewall subscriptions are tied to appliances. A true-up should check that these still match what you need, too.
True-up and offboarding
The single most effective step is a reliable leaver process. When someone leaves, their accounts should be disabled, their data handled according to your retention policy, and their licences released or reassigned. Linking licence removal to your HR leaver checklist, and using directory sync where vendors support it, means fewer licences drift unused.
Be careful with data, though. Removing some licences deletes the associated data after a grace period, for example a mailbox or cloud storage. Make sure anything you need is retained or backed up first; see Microsoft 365 backup and Google Workspace backup. Google, for example, offers Archived User licences for keeping leavers' data at lower cost.
How we help
Because your subscriptions sit on one Forever Systems account, we can see entitlements across vendors and help you reconcile them with usage. Tell us about starters and leavers and we will adjust licences, and we will review counts with you before each renewal. Read more about software renewals, or contact us to ask for a licence review.
How Forever Systems supplies your software licences
Forever Systems Ltd supplies business software subscriptions to UK organisations from one account, with one monthly invoice and a UK team who know the products.
- The right edition first time: we check what you need before you buy, so you are not paying for features you will never use
- Monthly or annual terms where the vendor offers them, and help timing renewals and commitments
- Licence changes handled for you: add or remove users, upgrade editions and true-up without starting a new contract
- Deployment and support from engineers who run these products every day, not just a reseller account
- Consolidated billing and renewal reminders so nothing lapses unexpectedly
We work with businesses, schools, charities and public sector organisations of all sizes.
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Contact usFrequently asked questions
What does true-up mean in software licensing?
Reconciling the licences you have bought with actual use, then buying licences for any extra use and, where terms allow, reducing licences you no longer need.
How often should we true-up licences?
Quarterly is a sensible rhythm for most organisations, with an extra review 60 to 90 days before each annual renewal. Usage-based subscriptions true-up automatically each month, but still need old devices and users removing.
Can I reduce licences in a true-up?
On monthly and usage-based terms, usually yes. On annual commitments, reductions generally take effect at renewal, so note them and apply them then.