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The video introduces X Formation's license management product License Statistics, highlighting its impact on business operations and profitability. It emphasizes the importance of monitoring software license usage for small companies, medium businesses, and large enterprises. Software asset management is crucial for business success due to the high cost of software and the expenses for maintenance, support, and upgrades. Lack of control and understanding of software usage can lead to waste in spending from purchasing unused licenses, poor allocation of licenses, and insufficient license management.