How Businesses Waste Their Software Investments

Software asset management problems How Businesses Waste Their Software Investments The findings of new study serve as a wake-up call for C-level execs to implement software asset management/software license optimization solutions. Out of Compliance Licenses 75% of enterprises said at least some percentage of their software is overused; 32% report as much as 11% or […]

Written By: Gina Roos
Feb 24, 2016
Channel Insider content and product recommendations are editorially independent. We may make money when you click on links to our partners. Learn More

Software asset management problems

1 - How Businesses Waste Their Software InvestmentsHow Businesses Waste Their Software Investments

The findings of new study serve as a wake-up call for C-level execs to implement software asset management/software license optimization solutions.

2 - Out of Compliance LicensesOut of Compliance Licenses

75% of enterprises said at least some percentage of their software is overused; 32% report as much as 11% or more of their software spend is the result of non-compliant use.

3 - Wasted EntitlementsWasted Entitlements

96% of respondents said that at least some of their software budgets are wasted on not fully using their entitlements—the product use rights in the software license agreement.

4 - More AuditsMore Audits

65% of enterprises were audited by a software vendor within the past year, and 23% of them were audited three times or more.

5 - Big AuditorsBig Auditors

Respondents have been audited by all the major software vendors, including Microsoft (61%), Adobe (33%) and Oracle (30%).

6 - Big FeesBig Fees

44% of enterprises (compared to 25% in the prior year) paid $100,000 or more in true-up costs to their software vendors as a result of non-compliant software use; 20% (up from 9% the prior year) reported true-up costs of $1,000,000 or higher.

7 - Wasted SoftwareWasted Software

93% of organizations spent money on at least some software that is underused (shelfware), and 30% said that 21% or more of their software spend is associated with shelfware.

8 - Growing ImportanceGrowing Importance

81% of organizations, up from 15% in 2015, said managing software licenses and usage is important or very important.

9 - More TrackingMore Tracking

92% report proactively tracking, managing and reporting software licensing and usage today. Methods include automated commercial SAM/software license optimization solutions (34%), manual (29%) and tracking tools provided by software vendors (16%).

10 - Managing Software AssetsManaging Software Assets

Top reasons enterprises proactively manage their software licenses and use include reducing software costs/cost avoidance (74%), ensuring software license compliance/reducing audit risk/costs (71%), and reducing risk by discovering and removing unauthorized or unlicensed software from their systems (42%).

11 - Tight Software BudgetsTight Software Budgets

Nearly half (49%) of the respondents said software budgets will remain the same over the next 18 to 24 months; 19% said budgets will decrease, and 33% said they will increase.

Recommended for you...

What Top Technologies IT Leaders Want From Solution Providers in 2025

IT leaders reveal top technology demands for 2025, highlighting sustainability, cybersecurity, and innovation as key priorities for solution providers.

Jordan Smith
Jan 2, 2025
MSPs’ Guide to Building an AI Strategy

Read about how MSPs can thrive in the AI revolution by building foolproof AI strategy through valuable insights, practical advice and more.

Pamela Winikoff
Feb 16, 2024
What is Partner Relationship Management (PRM) and Why Is It Important?

Partner Relationship Management (PRM) is the management and collaboration between businesses and their channel partners. Learn more now.

Sam Ingalls
Nov 19, 2021
Analytics Emerges as a Means to an AI Solution’s End

Most advanced analytics applications today rely on statistical models to project an outcome based on all the data currently available. While not always

Channel Insider Logo

Channel Insider combines news and technology recommendations to keep channel partners, value-added resellers, IT solution providers, MSPs, and SaaS providers informed on the changing IT landscape. These resources provide product comparisons, in-depth analysis of vendors, and interviews with subject matter experts to provide vendors with critical information for their operations.

Property of TechnologyAdvice. © 2025 TechnologyAdvice. All Rights Reserved

Advertiser Disclosure: Some of the products that appear on this site are from companies from which TechnologyAdvice receives compensation. This compensation may impact how and where products appear on this site including, for example, the order in which they appear. TechnologyAdvice does not include all companies or all types of products available in the marketplace.