The ‘Count by’ field on the Product Model is the primary configuration that determines how licenses are counted for reconciliation—by ‘Install’ (device), ‘User’, ‘CPU’, or ‘Core’. Setting it to ‘User’ is essential for tracking user-based licenses like O365, as it directs the reconciliation process to count assigned users, not installations.

Many enterprise software licenses, particularly for operating systems, have specific virtualization rights (e.g., allowing unlimited VMs on a licensed host). The reconciliation is counting each VM install because it lacks the logic to apply these rights. Creating a virtualization rights rule in HAM will correctly map the VM installations back to the licensed host, preventing over-counting.

The core relationship for license consumption is between a Software Instance (the installed software) and the CI it is installed on (e.g., a Computer). To find software on retired hardware, you must query this relationship and filter where the Computer’s operational status is ‘Retired’. The other options involve different aspects of the HAM process but not the direct install location data needed for this report.

A common issue in core-based licensing is that discovery tools often report the total number of logical processors (which includes hyper-threading cores) rather than just physical cores. Licensing terms typically count physical cores only. The discrepancy (2 processors * 8 cores = 16 physical cores vs. 32 reported) strongly suggests hyper-threaded logical cores are being counted. This requires adjusting discovery or normalization logic to map to physical cores only.

The License Entitlement record is the central record in HAM that defines the specific, legally binding rights purchased. It links a Product Model (the software) to a Contract (the agreement document) and, most importantly, specifies the exact license metric (e.g., 100 User licenses), the effective dates, and the proof of ownership. The reconciliation engine uses entitlements as the benchmark for compliance.

Standard discovery identifies installed software but cannot track usage for certain license models like concurrent (floating) or network licenses. A high number of unlicensed installations could simply mean the software is accessed via a license server with a pool of seats. You must first determine the actual license model before concluding there is a compliance issue.

Normalization is the critical process that takes raw, disparate discovery data (executable names, versions, publishers) and maps it to a standardized Software Model in the catalog. It uses pattern-matching rules to identify that ‘winword.exe’, ‘MS Word 16.0.12345’, and ‘Microsoft Word for Office 365’ all refer to the same product, enabling accurate tracking and reconciliation.

The TCO calculator is a dedicated HAM feature designed for this exact purpose. It allows you to input various cost factors—initial license purchase, annual maintenance/support fees, expected growth, and depreciation—associated with a Product Model over a defined period. This provides a forward-looking financial projection far beyond the static cost fields in a Product Model or a point-in-time reconciliation report.

To control requests for approved software, the catalog item should be linked to a specific Product Model (defining the software). The workflow should then check available License Entitlements for that product to see if there are spare licenses (under the ‘Available’ field) before approving the request. This creates a closed-loop, compliance-aware procurement process.

The ‘Count by’ field on the Product Model is the primary configuration that determines how licenses are counted for reconciliation—by ‘Install’ (device), ‘User’, ‘CPU’, or ‘Core’. Setting it to ‘User’ is essential for tracking user-based licenses like O365, as it directs the reconciliation process to count assigned users, not installations.0