Webinar
The Role of Open Source and Third-Party Audits
Learn why open source and third‑party code audits matter, their role in M&A, security trends, SBOMs, and how to strengthen your software supply chain.
Original Air Date: October 23, 2024
Overview
Building modern software means navigating an ever‑expanding universe of open source components, third‑party code, and hidden dependencies. This webinar dives deep into the realities of today’s software supply chain—and why proactive visibility is becoming a non‑negotiable advantage for software producers. You’ll discover what an open‑source or third‑party audit truly uncovers, how SBOMs are transforming compliance and security, and why leading organizations now treat software components with the same rigor as physical parts.
The discussion breaks down when and why audits matter most, from M&A readiness to avoiding costly licensing and security pitfalls. You’ll also gain insight into emerging trends reshaping engineering teams: automation, microservices, cloud‑native architectures, and the skyrocketing number of transitive dependencies hidden inside modern codebases. Real‑world examples reveal how high‑profile vulnerabilities like Log4j have accelerated the shift toward continuous auditing and deeper forensic analysis. Most importantly, you’ll walk away with practical guidance on strengthening your software supply chain and preparing your products for customer, legal, and security scrutiny.
Whether you’re aiming to reduce risk, speed up delivery, or build trust with stakeholders, this session delivers the clarity and strategy you need to stay ahead.
Recap
Key Themes and Takeaways
The Rising Importance of Open Source and Third‑Party Code Audits
Modern software products are built on a foundation of open source and third‑party components, making visibility into these dependencies essential. The webinar explains how audits uncover what truly exists within a codebase—from licenses to vulnerabilities—so organizations can confidently manage risk, maintain compliance, and avoid legal exposure. This clarity becomes especially vital when external stakeholders, customers, or partners require transparency into software composition.
Why SBOMs Are Now Mission‑Critical
The discussion highlights how Software Bills of Materials (SBOMs) have evolved into indispensable artifacts for both compliance and security. An audit-derived SBOM delivers a precise inventory of components and associated risks, enabling teams to answer urgent questions about exposure—especially during high-profile vulnerability events. As expectations from customers, regulators, and ecosystem partners grow, SBOM accuracy becomes a competitive differentiator.
When Software Audits Matter Most
The conversation emphasizes key moments when audits provide outsized value. M&A activity is a prime example, where acquirers demand deep visibility into IP ownership, licensing obligations, and security posture. Beyond transactions, audits help organizations validate that internal policies are being followed, uncover hidden risks before release, and maintain long-term code health through periodic review cycles.
The Shift Toward Continuous, Incremental Auditing
Rather than relying on one-off assessments, the webinar reveals a growing industry trend toward smaller, frequent audits embedded directly into the development lifecycle. Continuous auditing dramatically reduces future remediation effort, keeps SBOMs current, and eliminates the shock of discovering years’ worth of unmanaged components. Teams adopting this model gain operational efficiency and are better prepared for unplanned scrutiny.
Emerging Trends in Software Architecture and Dependency Management
Participants discuss how microservices, package managers, cloud-native tooling, and containerized environments have accelerated the complexity of software supply chains. With dependencies multiplying across languages and frameworks, organizations increasingly rely on automation to detect components, generate SBOMs, and enforce policy. This shift reflects the broader reality that manual oversight is no longer sufficient in modern development ecosystems.
Security’s Expanding Role in Open Source Governance
The webinar explores how security teams have become central to open source and third‑party governance. Once driven primarily by legal concerns, audits now serve as a critical input for vulnerability management and secure development practices. As security leaders seek deeper visibility—including into transitive dependencies—the integration of compliance and security workflows is becoming a new norm.
The Impact of High‑Profile Vulnerabilities on Organizational Awareness
Recent events such as Log4j and Spring4Shell have accelerated organizational urgency around knowing exactly which components are in use. These incidents demonstrated how quickly executives request answers, how difficult it can be to provide them without an SBOM, and how deeply vulnerabilities can be embedded across systems. As a result, organizations are investing more in proactive discovery and forensic-level analysis.
Standardization and Automation Transforming Audit Practices
The webinar highlights the growing influence of industry standards and automated tooling that streamline open source management. Frameworks like OpenChain and modern automated scanners allow software producers to move past ad‑hoc processes and toward predictable, scalable practices. This shift empowers teams to manage component sprawl, reduce audit fatigue, and ensure repeatable compliance across multiple product lines.
Frequently Asked Questions
An open source audit provides a detailed review of all third‑party and open‑source components within a software product. For software producers, this offers clarity into licensing obligations, potential vulnerabilities, and hidden dependencies. Understanding what’s in the codebase helps reduce legal and security risks that can impact monetization and customer trust. An audit also ensures organizations meet increasing expectations for transparency. This is especially critical when preparing for M&A, customer due diligence, or regulatory compliance.
A Software Bill of Materials (SBOM) acts like an inventory list, outlining every component inside a software product. With rising security threats and complex dependency chains, SBOMs help teams instantly assess exposure during vulnerability events. They also streamline compliance by making licensing information clear and actionable. For software producers, this capability reduces remediation time and builds confidence with customers and partners. An accurate SBOM is now a key element of secure, scalable software monetization.
Third‑party audits are especially valuable before major business events such as M&A, product launches, or customer compliance reviews. However, relying only on milestone-driven audits can leave long periods where undiscovered risks accumulate. Performing audits periodically ensures policies are being followed and reduces the likelihood of costly surprises. Frequent audits help organizations maintain regulatory readiness and customer confidence. For companies with active development pipelines, continuous auditing is becoming the standard.
Incidents like Log4j create urgency for companies to understand what’s inside their products. These events expose how deeply third‑party components can be embedded, including through transitive dependencies. In response, organizations strengthen their supply chain strategies, invest in deeper audits, and move toward proactive vulnerability management. Leadership teams increasingly demand immediate answers about exposure across products. This shift pushes software producers to enhance visibility as a core part of risk management and monetization.
Software architectures are becoming more dependent on microservices, containers, and cloud‑native ecosystems. As a result, the number of open source packages used in even small applications has grown dramatically. Teams now rely on automated dependency detection and governance tools to keep pace. There is also increased focus on standardizing compliance processes across organizations. These trends make it essential for software producers to modernize their supply chain practices to stay competitive.
Continuous audits break large, overwhelming reviews into smaller, manageable checkpoints aligned with the development cycle. This approach minimizes the effort required to maintain compliance and reduces long-term technical debt. It also ensures that SBOMs remain accurate and up‑to‑date across versions. For software monetization leaders, continuous auditing helps avoid delays in releases or sales cycles triggered by compliance gaps. Ultimately, it provides a more predictable and scalable governance model.
Third‑party dependencies can introduce unknown security vulnerabilities, outdated components, and licensing conflicts. These issues can slow down sales, complicate customer negotiations, or even force costly product changes. By identifying dependencies early through audits and SBOMs, teams can prevent risk from undermining product value. Clear visibility also supports better decision-making around component selection. Effective dependency management is increasingly tied directly to commercial success.
Licensing compliance affects everything from product distribution rights to customer confidence and M&A valuations. Non‑compliance can lead to legal exposure, forced code changes, or reputational damage—all of which impact monetization. A clear understanding of licensing obligations ensures smooth delivery and reduces friction with legal, engineering, and sales teams. Audits help identify discrepancies long before they become issues. Strong compliance practices strengthen the product’s commercial reliability.
Baseline audits can be time‑consuming because they involve reviewing entire codebases for the first time. Companies reduce this effort by moving toward automated detection tools and establishing continuous auditing practices. Once the initial baseline is completed, follow‑on “delta audits” become far easier and faster. Maintaining ongoing visibility also prevents the accumulation of hidden risks. This approach keeps teams prepared for unexpected due diligence requests.
Software supply chain risks now impact customer trust, regulatory compliance, and overall business continuity. Executives increasingly recognize that vulnerabilities in open source components can disrupt operations or market credibility. As a result, software producers are expected to demonstrate strong governance and transparent component tracking. These expectations extend into cloud services, on‑prem delivery, and embedded software alike. Organizations that invest early in supply chain security position themselves for smoother monetization and long‑term growth.
Resources
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How to Manage Open Source Risk in M&A
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Open source risks can derail M&A deals. Read the whitepaper to learn pitfalls, due diligence steps, and ways to mitigate software risk.
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This whitepaper reviews the state of OSS, four management use cases, and best practices and solutions to help security and legal teams in highly regulated industries. Access now to learn how you can confidently mitigate rising supply chain risk.
Data Sheet
OSS Inspector Plugin
Ensure your code is secure and compliant by effortlessly managing open source dependencies directly in your IDE.
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