How Businesses Waste Their Software Investments

By Gina Roos

Many organizations waste a significant share of their enterprise software budgets through unused or underused software, and out-of-compliance software contracts, according to a new report from Flexera Software, a provider of software licensing, compliance, security and installation solutions. The study also finds that most companies are increasingly audited by their software vendors, which has resulted in some significant "true-up" fees. The study underscores the complexity of the software license landscape--the number of contracts to manage, the different types of licenses, different vendor rules and manual tracking of licensing information, according to R "Ray" Wang, principal analyst at Constellation Research. He said as much as 33 percent of software budgets is wasted on insufficient software license management. Flexera said its survey results should be a wake-up call for C-level execs to implement software asset management (SAM)/software license optimization solutions to reduce these risks. These solutions can be deployed on premise, on hosted/private clouds, using software as a service (SaaS), or externally via managed service providers. We examine takeaways from the Flexera study.

This article was originally published on 2016-02-24