Wasted Dollars: The Problem of Unused Software

By Dennis McCafferty  |  Posted 04-10-2013
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Wasted Dollars: The Problem of Unused Software

Unacceptable Practices  One-third say they're either dissatisfied or "very dissatisfied" with their current method for managing software licenses and usage.

A significant percentage of organizations will increase their software budgets for the indefinite future, according to a recent survey from Flexera Software. However, there's also an alarming rise of "shelfware," indicating that too much money is spent on tools that end up under-utilized, or get abandoned. Given that the total market for packaged software has been estimated at $325 billion, under-utilized software is getting to be an expensive problem. Not surprisingly, many companies are dissatisfied with the way they manage software licenses and usage, according to the survey. "Corporations adjust quickly to economic realities, and in this economic downturn they've become expert in leveraging software to offset leaner staff," says Steve Schmidt, vice president of corporate development at Flexera Software. "But they've developed a blind spot—investing heavily in efficiency-creating technologies like software without really understanding how to ensure this critical asset is being optimally used. Consequently, an unacceptable proportion of that expenditure is wasted." More than 100 enterprise executives participated in the research.

Dennis McCafferty is a freelance writer for Baseline Magazine.


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