Apparently, there are billions of dollars in software “waste” spread across U.S. businesses, according to a report by London-based software lifecycle management vendor 1E.
A recent 1E report revealed software waste is on the rise, with the average large enterprise throwing away around $7.4 million a year on unused and under-used software. That adds up to a shocking total of $34 billion in total annual waste in the U.S. and U.K., with roughly 38 percent of all installed software going to waste.
Enterprise software vendors are in transition from perpetual licenses to software as a service (SaaS) models. The question of “use” is becoming of the most interesting for a manufacturing companies forced by vendors to pay “for use” instead of paying for license.
The current tally of software waste costs US companies $247 per user, or $28 billion, according to a study by 1E, which makes application management tools.
1E recently released their 2016 Software Usage and Waste Report and we thought it useful to highlight some salient points and relate it back to our experience in the South African context.
According to the report, the current tally of software waste costs US companies $247 per user, or $28 billion. In South Africa we see clients with very similar unused profiles compared with that of 1E’s research. Conservatively one could expect an average of R2000 per PC of unused software.
1E have published some interesting research into the volume of unused software in large organizations.
A shocking number of the software applications acquired by companies are considered “waste,” meaning they go unused for one or more months at a time—and sometimes longer, according to recent research published by 1E.
Global enterprise software waste today stands at 38%, totalling $28 billion of waste in the US alone, or $247 per user, according to a new study by software firm 1E.
Corporate spending habits are in flux. New research reports find the good news and bad news in those changes. Wasted spending, for instance, is on the rise — in one area of the enterprise in particular. On the other hand, electronic invoice use is also up, so corporates may also be increasingly encouraged to spend digitally.
While reducing license waste won’t result in immediate savings it will make a difference over time. The report gives three specific areas of savings when licensing is tightly controlled: fewer renewal purchases, a reduction in maintenance, and a reduction in the risk of vendor audits. The report is worth reading in detail—you may just find an area where you could save tons of money a year.