Sidra Saleem for SUDO Consultants

Posted on Aug 26 • Originally published at sudoconsultants.com

Optimizing Software Licensing Costs with AWS License Manager

#costoptimization #awslicensemanager

Introduction

Software licensing and compliance management is an essential component of IT management, but it can present IT departments with ongoing challenges. For enterprises that operate in multiple regions and have uses for software across on-premises systems and the cloud, software license management can become baffling and strange quickly. Common problems are related to either over-provisioning, in which licenses have been purchased but are underused, or underutilization, in which software licenses were purchased but not utilized to their fullest capabilities when used. There is also the risk of unintentionally and unknowingly being out of compliance with licensing agreements, which can lead to fines and can be a legal risk as well.

AWS License Manager is an excellent option to help with these challenges. AWS License Manager gives organizations an easy-to-use and centrally managed software license management service that can help manage software licensing costs, enforce compliance, and monitor usage and provisioning. AWS License Manager is particularly helpful in hybrid enterprise environments between AWS and on-premises infrastructure, as it helps to simplify the complexities and challenges of multi-cloud licensing and provide consistent visibility and controls regardless of where the software might be deployed. This article provides a full guide on how to best optimize software licensing costs using AWS License Manager.

The article will also provide several views and editions of instructions on how to use AWS License Manager with appropriate coverage using both the AWS Management Console and the Command Line Interface (CLI). Software licensing can become an expensive and tiresome burden for cloud architects, developers, and IT managers, so understanding AWS License Manager gives cloud architects, developers, and IT managers the reference for a successful license management process.

Understanding AWS License Manager

What is AWS License Manager?

AWS License Manager is a beneficial service that is used to easily manage software licenses used within an AWS environment or personal on-premises setup. It is meant to maintain a fair and honest use of licenses to ensure we are complying with licensing either used or remaining resources. AWS License Manager allows you to leverage AWS to manage license entitlements for third-party software vendors, most notably Microsoft, SAP, Oracle, and others.

Another important feature of AWS License Manager is implementing Bring Your Own License, or BYOL, software licenses in your AWS environment. This basically means you can use licenses you already own, even in an AWS environment, if you are compliant or abide by the license agreement. AWS License Manager allows you to define license constructs, usage constraints, and ability to manage or identify these licenses to keep your infrastructure aligned with licensing paradigms.

Key Features

Managing Bring Your Own License (BYOL): AWS License Manager supports BYOL scenarios, allowing you to bring and manage your existing software licenses in AWS.
Setting Up License Configurations: You can define custom license configurations that specify product details, entitlements (such as cores, sockets, or VMs) and usage rules.
Enforcing Usage Limits and Rules: AWS License Manager enables the enforcement of license limits and rules, preventing overuse and ensuring compliance.
Centralized License Management Across Hybrid Environments: The service provides a single pane of glass for managing licenses across AWS and on-premises environments.

Advantages of Using AWS License Manager

Improved Visibility: Gain comprehensive insights into license usage across your organization, helping to identify underutilized licenses and potential cost-saving opportunities.
Compliance Assurance: Automatically enforce license limits and rules, reducing the risk of non-compliance penalties.
Optimized Licensing Costs: Use AWS License Manager to rightsize your licenses based on actual demand, reducing wastage and unnecessary expenditure.

Example Scenarios

Without a proper tracking mechanism, companies often over-purchase licenses to avoid the risk of non-compliance, leading to significant wastage. For instance, a company might buy 500 licenses but only use 300, with the remaining 200 sitting idle, generating no value. AWS License Manager can help track these licenses, enforce usage limits, and ensure that only the necessary number of licenses is purchased and utilized, thereby optimizing costs.

Setting Up AWS License Manager

Pre-requisites

Before setting up AWS License Manager, ensure you have access to the AWS Management Console and the necessary IAM permissions. You should also verify that your software licenses are supported by AWS License Manager.

Step-by-Step Guide (Console)

Accessing AWS License Manager

Log in to the AWS Management Console.
Navigate to AWS License Manager under the "Management and Governance" section.

Setting Up License Configurations

In the AWS License Manager dashboard, click on "Create license configuration."
Enter the product name, license type, and entitlements (e.g., cores, sockets, or VMs).
Specify the counting type, which could be vCPUs, instances, or physical cores.

Defining Rules for License Usage

Define rules that specify the maximum number of licenses allowed.
Configure notifications to alert you when usage approaches the defined limits.

Assigning License Configurations to Resources

Associate the license configuration with AWS resources such as EC2 instances or AMIs by selecting the relevant resources from the dashboard and applying the license configuration.

Step-by-Step Guide (CLI)

For developers and administrators who prefer the command line, AWS License Manager can be managed using the AWS CLI.

Creating a License Configuration

aws license-manager create-license-configuration \
--name "MyLicenseConfig" \
--license-counting-type "vCPU" \
--license-count 100

This command creates a license configuration with a limit of 100 vCPUs.

Listing License Configurations

aws license-manager list-license-configurations

This command lists all existing license configurations.

Updating a License Configuration

aws license-manager update-license-configuration \
--license-configuration-arn "arn:aws:license-manager:region:account-id:license-configuration/license-config-id" \
--license-count 200

This command updates the license count for an existing license configuration.

The CLI offers flexibility and automation potential, making it ideal for large-scale environments where license management needs to be integrated with deployment pipelines or other automated processes.

Managing Licenses Across AWS and On-Premises

Hybrid Licensing Environments

In today's IT landscape, many organizations operate hybrid environments that combine on-premises infrastructure with cloud resources. Managing software licenses across these environments can be complex, but AWS License Manager simplifies this by offering centralized license management.

Setting Up License Rules for Hybrid Environments (Console)

Configure AWS License Manager for Hybrid Environments

In AWS License Manager, create a new license configuration and specify that it applies to both AWS and on-premises resources.
Define the license rules that apply across your hybrid environment.

Connecting On-Premises Infrastructure

Use AWS Systems Manager to connect your on-premises infrastructure to AWS.
Ensure that the relevant instances or servers are registered with AWS Systems Manager and can be managed by AWS License Manager.

CLI Method for Hybrid License Management

For hybrid environments, the AWS CLI provides a powerful way to manage licenses across both AWS and on-premises resources.

Associating License Configurations

aws license-manager associate-license-configuration \
--resource-arn "arn:aws:ec2:region:account-id:instance/instance-id" \
--license-configuration-arn "arn:aws:license-manager:region:account-id:license-configuration/license-config-id"

This command associates a license configuration with an EC2 instance.

Creating a Token for On-Premises Management

aws license-manager create-token \
--license-configuration-arn "arn:aws:license-manager:region:account-id:license-configuration/license-config-id"

This command generates a token to connect your on-premises infrastructure to AWS License Manager.

Best Practices

Monitor Compliance: Regularly monitor license usage to ensure compliance, especially in hybrid environments where both on-premises and cloud resources are involved.
Avoid Over-Provisioning: Use AWS License Manager reports to identify and eliminate over-provisioned licenses, reducing unnecessary costs.

Monitoring License Usage and Compliance

Importance of Monitoring Licenses

Regular monitoring of license usage is crucial to avoid underutilization and over-provisioning. By keeping track of how licenses are being used across your organization, you can make informed decisions to optimize costs and ensure compliance.

Setting Up Alerts and Notifications (Console)

Configuring Notifications

In AWS License Manager, navigate to the license configuration you want to monitor.
Set up notifications to alert you when license usage reaches specific thresholds.

Integrating with AWS CloudWatch

Use AWS CloudWatch to set up alarms that trigger based on license usage metrics.
Configure CloudWatch to send notifications via SNS (Simple Notification Service) when an alarm is triggered.

Monitoring License Usage with CLI

Using the CLI, you can monitor licenses programmatically, making it easier to integrate license management with other automation tools.

Retrieve License Configuration Details

aws license-manager get-license-configuration \
--license-configuration-arn "arn:aws:license-manager:region:account-id:license-configuration/license-config-id"

This command retrieves detailed information about a specific license configuration.

List License Usage

aws license-manager list-usage-for-license-configuration \
--license-configuration-arn "arn:aws:license-manager:region:account-id:license-configuration/license-config-id"

This command lists the current usage of the specified license configuration.

Using AWS Config and CloudWatch for Compliance Tracking

Setting Up AWS Config Rules

Create AWS Config rules to track compliance with your license configurations.
AWS Config can automatically evaluate whether your resources comply with license rules.

Automating Compliance Checks

Integrate AWS Config with AWS CloudWatch to create a continuous monitoring and alerting system.
Set up automated remediation actions for non-compliance using AWS Systems Manager Automation.

Practical Example

Consider a scenario where an organization operates across multiple AWS accounts and regions. By setting up AWS License Manager and integrating it with AWS Config and CloudWatch, the organization can monitor and enforce compliance across its entire infrastructure. This ensures that all resources adhere to the defined license rules, preventing costly compliance violations and optimizing license usage.

Automating License Management Using AWS License Manager

Benefits of Automation in License Management

Automation in license management can significantly reduce the potential for human error, improve compliance, and lower costs. By automating routine tasks such as license monitoring, enforcement, and reporting, organizations can ensure that their licenses are used efficiently and in compliance with contractual obligations.

Using AWS License Manager with Infrastructure as Code (IaC)

Integration with AWS CloudFormation

Use AWS CloudFormation to automate the setup of license configurations.

Example YAML template:

Resources:
  MyLicenseConfiguration:
    Type: "AWS::LicenseManager::LicenseConfiguration"
    Properties:
      Name: "MyLicenseConfig"
      LicenseCountingType: "vCPU"
      LicenseCount: 100

Deploy this template to automatically create a license configuration during infrastructure provisioning.

Using Terraform for License Management

Similar to CloudFormation, Terraform can be used to manage AWS License Manager configurations.

Example Terraform configuration:

resource "aws_licensemanager_license_configuration" "example" {
  name                 = "example-license"
  license_counting_type = "vCPU"
  license_count        = 100
}

Automation with AWS CLI and SDK

Automating License Management with CLI

Use scripts that incorporate AWS CLI commands to automate license management tasks such as creating, updating, and monitoring licenses.

Using SDKs for Advanced Automation

Leverage AWS SDKs, such as Boto3 for Python, to create custom automation workflows.

Example Python script using Boto3:

import boto3

client = boto3.client('license-manager')

response = client.create_license_configuration(
    Name='MyLicenseConfig',
    LicenseCountingType='vCPU',
    LicenseCount=100
)
print(response)

Case Study Example

Consider a company that operates a large number of EC2 instances across different regions. By automating license management with AWS License Manager and integrating it with their CI/CD pipeline, the company can dynamically adjust license configurations based on the scaling of their infrastructure. This ensures that they only pay for the licenses they actually need, leading to substantial cost savings.

Cost Optimization Strategies with AWS License Manager

Strategies to Reduce Licensing Costs

Rightsizing Instances: Adjust the size of your instances based on actual license usage. For example, if an application is using less than its allocated vCPUs, consider downsizing the instance to reduce licensing costs.
Avoiding Over-Provisioning: Regularly review license usage reports to identify and eliminate over-provisioned licenses. Use AWS License Manager to enforce limits and prevent unnecessary purchases.
Optimizing Reserved Instances: Consider purchasing Reserved Instances for predictable workloads to take advantage of lower pricing, which can further reduce licensing costs.

Practical Steps for Cost Optimization (Console & CLI)

Using License Manager Reports

In the AWS Management Console, access License Manager reports to analyze license usage patterns and identify underutilized licenses.

CLI Commands for Reports

aws license-manager list-license-specifications-for-resource \
--resource-arn "arn:aws:ec2:region:account-id:instance/instance-id"

Use this command to generate detailed reports on license usage, helping you make data-driven decisions.

Real-World Examples

A medium-sized enterprise discovered through AWS License Manager reports that they were consistently over-provisioning licenses for their development environments. By rightsizing their instances and enforcing stricter license rules, they were able to reduce their licensing costs by 30%.

Conclusion

AWS License Manager offers a comprehensive solution for managing and optimizing software licenses across AWS and on-premises environments. By providing features such as license configuration, usage tracking, and automated compliance enforcement, AWS License Manager helps organizations reduce costs, ensure compliance, and improve visibility into license usage.

If you’re currently managing software licenses manually or facing challenges with compliance, it’s time to explore AWS License Manager. Start by setting up basic license configurations and gradually expand to more complex automation and monitoring setups.

Effective software license management is crucial for both cost optimization and compliance. AWS License Manager not only simplifies this process but also provides powerful tools for automating and enforcing license policies across diverse environments. By integrating AWS License Manager into your cloud operations, you can achieve long-term cost savings and maintain full compliance with licensing agreements.