Peregrine Systems' Peregrine Desktop Inventory and Network Discovery and Asset Center and Sassafras Software's Key Server are highlighted in a discussion of the importance of careful study of software licensing agreements by purchasers. Seven described ways to reduce licensing costs and problems are related to shelfware, software audits, defining payment terms, maintenance fees, getting warranties in writing, change anticipation, and making the deal based on specific firm needs. Cingular Wireless is a company that has saved millions on unneeded licenses and has also reduced possible liability for unintentional use of more license than purchased. At Cingular, says David Fenrich, senior asset manager for the firm, one administrator and seven Peregrine Desktop Inventory and Network Discovery appliances handle all license oversight. Shelfware is software that goes unused, and many companies are not using their products to their full extent. Applications licensed should be carefully inventoried, and their usage should be monitored. A $150,000 fine can be levied by the Business Software Alliance if an audit shows that the limit of the license purchased has been exceeded, so companies should fully understand the terms of the license and also closely control any software obtained only for evaluation. For setting the terms of payment, terms have to be very specifically defined and spelled out in detail.