”True-up" refers to the process of reconciling the actual usage of software licenses with the number of licenses an organization has purchased. The true-up is typically conducted periodically, often annually, and it serves as a mechanism to ensure that the organization is in compliance with its software licensing agreements.
True Up “Cost” is typically shown when an organization’s actual license usage exceeds the number of licenses it initially purchased, a true up may result may lead to an organization purchasing additional licenses to ensure compliance.
The true-up process is crucial for maintaining compliance with software licensing agreements, avoiding legal issues, and optimizing costs. It allows organizations to adapt their software licensing to reflect their current usage patterns, ensuring that they are neither under-licensed nor over-licensed. This helps in optimizing software spending and aligning it with the actual needs of the organization.
This is auto calculated by ServiceNow SAM Pro based on the entitlements (licenses) owned and required, as per the different licensing rules specified by different publishers.
True Up Cost calculated on ServiceNow SAM Pro
True Up Cost Calculation details
ServiceNow SAM Pro automatically determines the true up cost associated with a publisher and product based on a calculation schema as follows:
True Up Cost= actionable rights count 1 * average cost per right 2+Total active reserved entitlement cost
1 actionable rights count =actionable rights on purchased rights remediation option
2 average cost per right =override license cost or unit cost of entitlement*
*Customers can add the override license cost on the software model that is the cost of license or the cost of license and maintenance cost. If no value is entered then the average entitlement price is used to determine the true up cost. More details here
*For SaaS products only License cost applies. The License and maintenance cost doesnot apply.
The True Up cost would be calculated at the software model level, then aggregated at the Product level and finally also determined at the Publisher level. Hence, a SAM Manager can easily view the bifurcation of the true up cost across products and software model.
Calculation aggregation detalls
Example:
The above is a calculation done for a software model. Similarly, it will be automatically calculated for each software model under Office 365 and thereby aggregated at Office 365 level and then at Microsoft level
