Software licensing may not be the first thing engineers want to discuss, but it can have a massive impact on budgets, productivity, and digital transformation success.
In this episode of Stay Sharp in Digital Engineering, hosts Juliann Grant and Jonathan Scott are joined by Paul Empringham, VP of CAD, Simulation & PLM at NYBS Consulting, to unpack the increasingly complex world of engineering software licensing. Drawing on decades of experience working with organizations including Rolls-Royce, BAE Systems, Red Bull Racing, JCB, and Sunseeker, Paul explains why many companies are unknowingly overspending on CAD, PLM, simulation, and engineering software—and how better data can dramatically improve licensing decisions.
The discussion covers the evolution from perpetual licensing to subscriptions, named-user models, and cloud licensing, along with practical strategies for optimizing license usage, avoiding costly compliance mistakes, and negotiating smarter renewals. Whether you're an engineering leader, IT professional, procurement specialist, or PLM administrator, this episode offers actionable advice that can save your organization significant time and money.
Key Topics Discussed:
- How engineering software licensing has evolved from perpetual licenses to subscription and cloud-based models
- The differences between concurrent, named user, and subscription licensing
- Why engineering, IT, and procurement all play critical roles in software purchasing
- What software license optimization actually means—and why usage data matters
- Common licensing mistakes that lead to unnecessary costs and compliance risks
- How organizations can negotiate license "remixes" instead of purchasing additional software
- The future of engineering software licensing, including token-based consumption models
Key Takeaways:
Know How Your Software Is Really Being Used
Most organizations don't actually know how many licenses they need. Monitoring real-world usage reveals idle licenses, underutilized features, training gaps, and opportunities to reduce costs without impacting productivity.
Don't Buy Bigger Bundles Than You Need
Vendors often encourage customers to purchase larger software bundles with additional features. Without usage data, companies frequently pay for capabilities they rarely—or never—use.
Compliance Is More Complicated Than You Think
Many licensing violations happen accidentally. Geographic restrictions, shared logins, outdated contract terms, and improper license usage can all create compliance issues that organizations don't discover until an audit.
License Data Creates Better Negotiations
Understanding actual license utilization gives organizations leverage during renewals. Instead of automatically renewing everything, companies can negotiate license remixes, exchange unused products, or right-size their environment.
The Licensing Landscape Is Still Changing
Engineering software continues to evolve toward subscription, cloud delivery, and token-based consumption. Organizations should understand where their software vendors are headed before making long-term purchasing decisions.
Memorable Quotes:
"Most companies simply don't know who's using which software—and where."
"Knowledge is power when you're negotiating software licenses."
"Don't be afraid to ask for a license remix. Everything is negotiable."
"Start small, understand your usage, and build from there."
Connect With Us:
Have questions about software licensing or want to continue the conversation? Leave a comment or reach out to the Stay Sharp team.
If you enjoyed this episode, be sure to subscribe, leave a review, and share it with a colleague who manages engineering software.
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