App License Tagging involves categorizing software licenses within an organization for easy filtering and reporting. It helps track how licenses are allocated, who owns them, and how they are being used within the company.

App License Tagging is important for tracking compliance with licensing agreements. By tagging each license with relevant information (e.g., assigned user, license type, or expiration date), organizations can more effectively manage software renewals, audits, and usage. It also provides visibility into whether licenses are being over or under utilized, helping businesses optimize their software investments.