Salesforce License Consolidation Tips:
- Audit all current licenses to identify unused or duplicate ones.
- Choose flexible licenses that match various team roles.
- Combine similar roles under shared licenses where possible.
- Use Salesforce’s License Management App for tracking.
- Regularly review and adjust based on team needs.
1. Your Current License Landscape
Before tackling consolidation, it’s crucial to know what licenses you have. This means auditing your current situation.
Follow these steps to get started:
- Audit All Users: Make a list of all Salesforce users. Identify their assigned licenses.
- Identify License Types: Salesforce offers a range of licenses, such as Sales Cloud, Service Cloud, Platform Licenses, etc. Understand what each type offers.
- Match License to Role: Ensure the licenses match the users’ roles. Sometimes, high-level licenses are assigned unnecessarily. For example, a user who only needs access to basic reporting might have an expensive Sales Cloud license. Identifying these mismatches is the first step to saving money.
- Look for Underutilized Licenses: See if some licenses are barely being used. If users log in once every few months, it’s worth rethinking whether they need the permit.
Example:
Imagine you have 50 Sales Cloud licenses but notice that only 30 users log in daily, and others only log in occasionally. Those additional 20 licenses might be unnecessary, suggesting room for consolidation.
2. Optimize License Types
Not every team member needs the same level of Salesforce access. Here’s how you can be smarter about assigning license types:
- Evaluate Needs-Based Access: Assign licenses based on user needs rather than giving everyone the same one.
- Full-Access Licenses: Users like sales reps who need advanced functionalities.
- Platform or Community Licenses: These are suitable for users with limited access. For example, HR or finance might only need access to a dashboard, not the full set of features.
- Use Feature Licenses: Instead of giving out expensive licenses, see if feature licenses (like read-only or chatter-only access) can fulfill specific user requirements.
Example:
A manager who only needs to check sales numbers might be okay with a Platform License instead of a full Sales Cloud license. Consolidating ten such users to cheaper licenses could save significant costs.
- Create Role-Specific License Guidelines: Developing a guideline matching each role to a specific license type can reduce future mismatches. This helps in efficient onboarding and employee role transitions.
- Use License Templates: Create templates for each department or role that help quickly decide the needed license type. This can prevent the unnecessary distribution of costly permits.
3. Leverage Salesforce Communities for Limited Users
If you have users who only need limited access, Salesforce Communities can help minimize license costs. Community users can view data, participate in Chatter, and complete limited tasks.
- Set Up a Community for External Users: Instead of giving external partners or customers full Salesforce licenses, use Communities.
- Limited Internal Access: Employees needing essential data visibility or collaboration features can also use Communities.
Example:
If an external consultant needs to interact with your sales data occasionally, you could add them as a Community user rather than give them an expensive Salesforce license.
- Differentiate Community Roles: Salesforce Communities offer different roles, such as Partner Community or Customer Community, each with different cost and functionality. Understand these roles well to assign them appropriately based on their specific needs.
Read about how to negotiate hybrid licensing.
4. Reassign Inactive Licenses
Salesforce licenses are often assigned but never re-used. To avoid wasting licenses:
- Track Logins: Regularly track user activity to identify inactive users. If a license hasn’t been used for 90 days, investigate why.
- Deactivate & Reassign: If someone has left the company or changed roles, promptly deactivate and reassign their license.
Example:
Consider an employee who leaves or moves to a role that doesn’t require Salesforce. Instead of buying a new license for their replacement, reclaim their existing license and assign it to the new hire.
- Create an Automated Process for Deactivation: Use Salesforce’s built-in automation tools to create workflows that flag inactive users. Automation can help ensure no license is wasted.
- Keep a License Inventory: Maintain a simple inventory or use an app to keep track of your licenses. Assigning new hires should always begin with reviewing the inventory to see if any are available before purchasing new ones.
5. Consolidate by Role Hierarchy
Assigning licenses according to role hierarchy can make consolidation smoother and cost-effective:
- Group Users Based on Access Requirements: Employees with similar job functions or access needs can share the same license type.
- Custom Permissions: Use custom permissions to modify roles. You may not need to give full access to every user in a specific department.
Example:
Suppose you have 15 marketing team members. Based on their roles and daily tasks, you can give a few full Sales Cloud licenses and limited licenses.
- Bundle Similar Roles Together: Creating bundles based on department and activity can simplify licensing decisions. For example, grouping all back-office employees into one license-type bundle and sales-oriented employees into another ensures uniformity and reduces confusion.
Read how to avoid hidden licensing fees in Salesforce deals.
6. Take Advantage of Permission Sets
Permission sets can grant additional access without upgrading the entire license.
- Avoid Upgrading Entire Licenses: Instead of switching users to a higher-tier license because they need one extra feature, use a permission set to expand access.
- Temporary Access: Permission sets can also be handy for temporary projects with more access, but only for a limited time.
Example:
If someone in customer service needs brief access to a marketing campaign feature, using a permission set can solve the issue without requiring an expensive license.
- Create Modular Permission Sets: Create permission sets that are modular and specific to functions such as reporting, exporting, or collaboration. This approach gives users the flexibility they need without moving them to higher-tier licenses.
- Minimize Overlapping Permissions: Avoid assigning permission sets that overlap with existing roles or licenses. Overlapping permissions can make tracking access more difficult and lead to inefficiencies in license management.
7. Consolidate Licenses During Contract Renewal
One of the best times to rethink your Salesforce licenses is during contract renewal. Salesforce is often more flexible during renewal negotiations:
- Consolidate License Types: Assess if you can reduce the number of licenses and switch some to less costly alternatives.
- Negotiate Discounts: When consolidating, use your reduced number to negotiate discounts.
- Ask for Bundled Deals: Bundled deals might provide more value. For example, you could consolidate different licenses into a cheaper, all-in-one package.
Example:
If you previously had a mix of 70 licenses (Sales Cloud, Service Cloud, and Platform), consider negotiating a bundled package with Salesforce. This helps simplify billing and may cut down the cost.
- Assess Usage Data Before Negotiation: Compile detailed usage data for Salesforce before entering negotiations. Understanding how much and which licenses are used is a powerful bargaining tool for getting the best deal.
- Consider Multi-Year Deals: Multi-year contracts can often be leveraged for significant discounts. If your company has long-term plans with Salesforce, negotiating a longer-term deal during renewal could lead to additional cost savings.
8. Utilize Apps for Monitoring Usage
Salesforce offers several third-party apps that can help you monitor and manage license usage effectively.
- AppExchange Tools: Apps like Cognizant License Manager or BetterCloud allow for detailed license usage tracking.
- Optimize Based on Data: Data from these apps can provide insights into which licenses are underutilized or redundant.
Example:
Use an app to discover that certain users haven’t logged in for over a month. From there, you can decide to reassign or consolidate licenses as needed.
- License Usage Alerts: Set up alerts for low activity. Many apps allow you to create custom rules to flag licenses with minimal activity, making it easier to target consolidation opportunities.
- Historical License Data: Analyze historical usage trends to anticipate license needs for future projects or staffing changes. Identifying underutilization patterns can allow you to be proactive rather than reactive when managing licenses.
9. Combine with Other Tools
Think about the other tools your company uses. Sometimes, Salesforce isn’t the only solution available.
- Shift Light Users to Another CRM: If a user only requires basic CRM functionalities, consider a cheaper alternative CRM.
- Integration via API: API integration connects Salesforce with other tools, meaning fewer people need direct Salesforce access.
Example:
An employee in the accounting department might need customer details only for invoicing. Instead of giving them a Salesforce license, you could integrate it with your invoicing system to share the relevant information.
- CRM Comparison: Analyze your current CRM alternatives to Salesforce to see if part of your workforce can use a less expensive CRM tool. This is especially helpful if specific teams only need minimal features.
- Use Middleware to Limit Access: Middleware like Zapier or MuleSoft can help create bridges between Salesforce and other business systems. Middleware allows you to integrate functions and share specific data without giving everyone full Salesforce access.
10. Review Regularly
License management isn’t a “set and forget” process. Regular reviews can help keep costs in check and ensure your Salesforce setup remains efficient.
- Quarterly Review: Conduct a review every three months to catch inactive users, identify changes in department needs, and ensure license alignment.
- User Feedback: Sometimes, users can better tell you which features they do or don’t need. Listening to users helps when reassigning or downgrading licenses.
Example:
A quarterly check might reveal that a seasonal team no longer needs Salesforce access after a campaign, allowing you to reallocate licenses to another department.
- Create a Review Calendar: Set up a calendar with reminders for quarterly license audits. Making this a habit ensures that newly inactive users are promptly deactivated and that your licensing plan evolves alongside your team.
- Internal Surveys: Periodically survey users to understand which features are actively used and which are not. User feedback can be beneficial in determining which licenses are essential and which ones can be downgraded.
Key Takeaways
- Audit & Understand: Know your current license situation before making changes.
- Match Needs to License: Assign licenses that match what each user needs.
- Reassign & Optimize: Don’t let unused licenses go to waste. Reassign them and use permission sets as needed.
- Negotiate During Renewal: Take advantage of contract renewal to negotiate better deals.
- Review Regularly: Make regular reviews a habit to ensure everything stays optimized.
FAQ: Negotiating Hybrid Licensing Options
What is hybrid licensing for Salesforce?
Hybrid licensing allows a mix of different Salesforce license types to fit diverse user needs within one organization.
How does hybrid licensing benefit a business?
It offers flexibility by matching licenses to actual usage, potentially lowering costs and increasing user satisfaction.
Can different license types be combined in one account?
Yes, Salesforce supports multiple license types within a single organization, which can be tailored per user role.
Is hybrid licensing always cheaper than standard licensing?
It can be cost-effective if well-matched to usage but needs careful assessment against standard pricing.
How should businesses decide on the number of licenses needed?
Start by assessing daily user needs and engagement, then match licenses to those roles.
What’s the best way to identify unused licenses?
Use Salesforce’s License Management App or reports to track underutilized licenses.
Can licenses be scaled based on changing needs?
Yes, hybrid licensing supports scaling, allowing easy adjustment for seasonal or project-based roles.
How do you negotiate hybrid licensing with Salesforce?
Research typical usage, then discuss customized packages with a Salesforce representative for a tailored fit.
Is it possible to upgrade or downgrade specific licenses?
Salesforce allows upgrades and downgrades depending on the role and organizational needs.
How can businesses ensure they aren’t overpaying for hybrid licenses?
Regular audits, monitoring usage, and adjusting licenses can prevent unnecessary costs.
Do hybrid licenses support remote and on-site teams?
Yes, hybrid licensing is ideal for remote and on-site teams, adapting to various access needs.
What resources help in managing hybrid licenses?
Salesforce’s License Management App, along with their support teams, offers tools for tracking and adjustments.
Can hybrid licensing align with data security policies?
Yes, permissions and data access can be managed individually based on license type and user needs.
What factors affect the renewal of hybrid licenses?
Renewal depends on past usage, changes in team size, and whether licenses align with updated needs.
How can hybrid licensing be a long-term strategy?
By regularly reviewing roles and aligning them with suitable licenses, hybrid licensing can support long-term growth and flexibility.
