It uses a known list of vendor license requirements and product entitlements to take the unweildy list of software installed on a machine and boil it down to a list of licenses you need for it.
For example, say you've got both Adobe Photoshop CS5 and Adobe Photoshop CS6 installed on the same machine. Dumb SLM would see that as a need for two Photoshop licenses. DTS knows that a PS CS6 license covers PS CS5 on the same same machine so will only report PS CS6 under Licenabled Software.
I've not played much, but if I understand correctly it will even go so far as to handle Suites. Say a machines reports Web Premium CS4, Illustrator CS4, Photoshop CS4, Premier Pro CS4 and Dreamweaver CS5. This would report only Web Premium CS4, Premier Pro CS4 (as it's not included in Web Standard) and Dreamweaver CS5 (as it's newer than the once included in the suite).
I believe this video from Managed Planet's website demonstrates it.
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Richard has this correct. The term used by LANDesk is "Effective Licensing", another name is "Software Rationalization". The situation is as the admin you need to know all the products installed so you can patch and account for everything a user is using on the system. However you don't need to count the same things when paying for licenses. Effective Licensing gives you a count based on the EULA's of the products and when the rules are run against your inventory of machines it places a value in the inventory of each machine under Computer -> Software -> Licensed Software. Anything under that group in inventory would require you to own a license for that product. You can then create licenses based on the product name in SLM or import a license automatically by right clicking on Licensed Software in the DTS console and importing a zero count license for all products. In the ERP (Executive Report Pack) there are reports pre-built under Reports -> ERP -> Licensed Software. The adobe rule is a good one to start with typically.
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How can i add software to that list?
From my understanding, software cannot be manually added to this list but instead it will be added to the database once the managed device performs a software scan. The app will then be added to the Discovered area where you can then move it to the Monitored area where you'll be able to tie the license to it either manually or by importing the license details.
What you describe is basic SLM. The DTS Licensed software rules can be created and defined manually. Just be careful to add your own rules to existing Vendor groups as few times as possible, as the order the rules run by is also carefully designed. You can disable a complete system group and copy and edit to modify to your own needs, but obviously, your own group won't get updated with newly released rules. Better is to make your own group(s) for the vendors not included.
This is very helpful, thank you Frank.