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$15bn of preventable software costs found in organizations in the United States and United Kingdom

Posted on : April 14, 2011

3 years ago 0 51

Research shows over 80 percent IT managers in the US and UK have more than $100 unused software per PC today

London & New York – EMBARGOED UNTIL 14th April 2011 at 14.00 -1E, the global leader in IT efficiency software today announced the results of an independent study of IT professionals in the United States and United Kingdom into software efficiency. The study, commissioned in association with the International Association of Information Technology Asset Managers (IAITAM) and the Federation Against Software Theft Investors in Software (FASTIiS) conducted by Opinion Matters, revealed that software waste is endemic in organizations today, preventing cost efficiencies and unnecessarily draining IT budgets.

“Despite clear benefits and the staggering costs associated with unused software and shelfware, organizations do not routinely reclaim software licenses,” comments Sumir Karayi, CEO, 1E.

“Software Asset Management is overly complex. This is perhaps not surprising, given the complicated nature of software license agreements, bundled license and maintenance deals and the general vagaries of product names, versions and editions. We are able to transform this enormous amount of complex data into actionable results with AppClarity™, which we have launched today.”

The results of the software efficiency study were broadly similar in both territories. The study found that just 8 percent of UK organizations and 9 percent of US organizations systematically reclaim unused software licenses to save money. Respondents cited concerns about user reaction, business risk and lack of tools as reasons against action; however, the report found a clear financial imperative for every organization to do so:

  • Almost three quarters of organizations (UK=68; US=71 percent) admit to having software waste
  • An overwhelming majority (UK=92; US=83 percent) have undeployed software licenses, more commonly known as shelfware
  • Four fifths (UK=80; US=84 percent) agree that there is more than $100 worth of installed but unused software per PC

Furthermore, the study found that:

  • On average, at least 10 percent of all software purchased is destined to become shelfware – at a cost of between $145-155 per user per year for each organization
  • The majority of respondents (UK=85; US=72 percent) feel that software asset management is too complex and over two thirds in both the UK and US (66 percent) find preparing for vendor audits challenging
  • Half (UK=50; US=52 percent) of enterprises still use spreadsheets to record software licenses
  • Approximately one in ten (UK=9; US=12 percent) still use paper-based filing systems, while some (UK=14 percent; US=12 percent) staggeringly even admitted to not having a process in place at all

“Managing software licenses is undoubtedly complex. A lack of attention to this can pose serious threats to organizations. As contracts and licensing schemes become more complicated, adhering to and interpreting their terms and conditions is becoming increasingly challenging. Several other factors compound the problem, including lack of proactive planning, lack of governing policies and processes, lack of visibility of all applications and a lack of understanding the needs of individual users and business units within an organization,” comments Barbara Rembiesa, President, IAITAM.

The study was conducted by Opinion Matters in March 2011. It was commissioned by 1E and analyses the results from over 500 IT professionals who are responsible for managing software licenses in companies with more than 500 employees. This release gives statistics from respondents in both the UK and US.

The Software Efficiency Report 2011 coincides with the launch of AppClarity™ from 1E. This solution focuses on identifying, financially quantifying and eliminating software waste within organizations of any size. Leveraging Microsoft® System Center Configuration Manager 2007, AppClarity is simple to implement and facilitates cost savings within a month. For more information, please visit the 1E Media Center.

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