The hidden costs of custom-built scripts for licensing data collection

In software asset management, particularly for Microsoft SPLA partners and authorized outsourcers, many organizations still rely on customized scripts and manual processes to gain visibility into their software assets.

I know what you're thinking: It couldn't be more biased than a company offering a SAM platform writing an article warning about the dangers of using custom-built scripts. This article is therefore intended as a guide, not a judgement, and ultimately leaves the decision up to you. But let me explain:

When IT teams develop their own scripts to collect licensing data from servers, they enter a minefield of challenges that only become apparent over time. These solutions often start as simple efficiency hacks, but quickly develop into maintenance nightmares that consume resources and pose significant business risks. I know this because many of our customers started exactly the same way.

Custom scripts require constant attention. Every time Microsoft updates its licensing terms, changes product names, or modifies reporting requirements, your internal tools need to be updated. When server configurations change, operating systems are updated, or new virtualization technologies are introduced, these scripts no longer work. Someone on your team (usually that one guy responsible who is already involved in other important projects) then has to troubleshoot, debug, and fix them, often under time pressure as reporting deadlines approach.

This is not a one-time investment. It is an ongoing commitment that ties up your most valuable technical resources in maintenance rather than strategic initiatives. The developer who created the original script may leave the company, leaving behind undocumented code that becomes a black box that no one dares to touch. Most likely, you will have to start the entire process of creating a custom script from scratch.

Manual processes and self-developed scripts are often prone to errors. An overlooked server, an incorrect license count, or a misinterpreted licensing rule can lead to either significant under-licensing or wasteful over-licensing. For SPLA partners, these errors are not only annoying but can also trigger Microsoft audits and result in significant financial penalties.

The complexity of Microsoft licensing, particularly in relation to SPLA reports, Flexible Virtualization Program (FVP), and CSP hosting, requires a level of precision that manual processes simply cannot consistently deliver. A calculation error, outdated script logic, or an overlooked license change can result in six- or seven-figure audit penalties for your organization. I'm not trying to play on people's fears - I don't like that myself – but that's the reality for many IT service providers who have had to go through these audits without a professional tool.

Costs play an important role in deciding whether to build your own scripts or opt for a professional solution. Let's take a look at the economic aspects together:

Internal script development

• Initial development time (weeks to months of developer resources, don’t forget to include briefing and project management time)
• Ongoing maintenance and updates (continuous IT costs)
• Knowledge transfer and documentation costs (original engineer is leaving the organization)
• Error correction and troubleshooting time (engineers who develop scripts are not usually licensing experts)
• Potential audit penalties from inaccuracies
• Opportunity cost of technical teams not working on strategic projects

Professional SAM tool

• Predictable subscription cost
• Automated updates when licensing rules change
• Professional support team handling maintenance
• Built-in compliance safeguards
• Reduced, even minimized audit risk

When you factor in hidden costs, developer time at market rates, the business risk of non-compliance, and the opportunity cost of maintaining legacy scripts by skilled engineers, the subscription model becomes significantly more economical in the first year alone. In addition, professional tools offer additional ready-to-use features such as customer billing reports and audit trails.

Solution such as those offered by Octopus Cloud have become essential for companies that want to manage Microsoft licenses efficiently. Rather than treating software asset management as a side project, we have developed a specialized platform that addresses the unique challenges of Microsoft SPLA reporting and compliance.

We helped organizations eliminate under-licensing by an average of 30% and reduce over-licensing by 20%, while saving over $200 million in Microsoft audit fines for SPLA partners and authorized outsourcers. These aren't marginal improvements; they represent transformational outcomes that no internal script can realistically achieve.

Our platform automates SPLA usage reporting with accuracy that manual processes simply cannot match. Instead of your team wrestling with data collection scripts every month, Octopus Cloud handles the entire workflow, from data gathering across your server infrastructure to generating compliant reports ready for Microsoft submission.

For organizations managing Flexible Virtualization Programs and CSP Hosting licenses, we provide comprehensive management capabilities that eliminate the guesswork. The platform understands the nuances of Microsoft's licensing models and automatically applies the correct rules to your specific environment.

In addition to the benefits for license reporting, you can also use Octopus Cloud's solution for process automation in customer service delivery teams.

Perhaps most importantly, we ensure you're always audit-ready. When Microsoft comes knocking, you don't have to rush to check whether your custom scripts have captured everything correctly. You have confidence in your data, comprehensive reporting, and a platform specifically designed to meet Microsoft's compliance requirements. In any case, auditors generally do not accept custom-built scripts, but want their scripts to be executed in your datacenters. This is not the case with the Octopus Cloud platform, for example. We have seen that many auditors accept our collected data, which saves you a lot of time running external scripts in your infrastructure. Furthermore, we have been assessed by KPMG, which means that our solution has been thoroughly tested and verified for accuracy by an external auditing firm.

The question is really not whether you can develop internal tools for license reporting – of course you can. The real question is whether you should do so, given the strategic alternatives available. Is the money saved on the initial development of custom-built scripts really sustainable and worth it in the long term?

If you want to know more about our automated solution, reach out to us!

Cihan Gökgöz, CTO of Octopus Cloud

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