The disclosed invention is a software license management system (SLMS) utilizing a web-based interactive database to automate a software management process (SWMP) for managing software assets, measuring compliance requirements, and tracking/reporting status as necessary to assure proficiency and adherence to implementation requirements of the software management process. The SWMP is a process consisting of five different phases. The five steps of the SWMP involve identification of various solution alternatives, acquisition, deployment, maintenance and software retirement. The SWMP establishes high-level software management process to avoid litigation and penalties, maximize software asset utilization through tighter inventory control, and capitalize on the software procurement process.