A multi-site software license balancing system for allocating a predetermined number of software licenses between two or more license servers located at different sites. Each license server compiles software license allocation and availability data and shares the allocation and availability data with the other license servers. When the number of allocated and available software licenses falls below a predetermined number and software licenses are available at an underutilized site, software licenses are transferred to the overutilized site, thus balancing the number of software licenses available at each site.