We would not be exaggerating by asserting that the only thing more dreaded than software license compliance audit is an IRS audit. And the only thing more complex than a software license contract is the tax code. The likelihood of an audit actually happening, according to Gartner, is 50%, up from 35% a few years ago. Audits are expensive not only because of the seven figure fines but also the disruption of business as the contracts are reviewed manually. The audits don’t have to be so excruciating—the damage from audits could be preempted by automated tracking of software license compliance. Vendors like to see credible and verifiable proof of compliance. Else the auditors could turn a few stones and very likely find the company in violation of some obscure clause buried in a tome of a contract.