Datadog developed Clarity License Manager (CLM) to optimize the use of third-party software licenses within the company, addressing the inefficiencies and costs associated with managing numerous SaaS applications. Initially focusing on security, Clarity evolved into a comprehensive tool that uses automation to monitor and deactivate inactive accounts, thereby reducing unnecessary expenses and improving license management. The system integrates with HR data and applications like Google Workspace, notifying employees via Slack and email about inactivity and allowing for easy reactivation when necessary. Its modular architecture, built on AWS Lambda and Postgres, accommodates the scalability required for a growing SaaS footprint by using microservices and application-specific adapters to ensure flexibility and reusability. By leveraging Datadog's metrics and dashboards, the team gains insights into software usage trends, helping inform procurement decisions, while alternative commercial solutions were deemed less customizable and cost-effective. Future enhancements include improving user interaction, incorporating more detailed user data, and optimizing processing efficiency to further refine software licensing strategies.