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The Real Cost of Unused Software

Unused or wasted software costs companies money, but just how high is that cost? In a report, 1E Limited analyzes how much software waste exists, the cost, and ways to combat it. This report analyzed 3.6 million seats and 1,800 software titles spanning across 129 corporations, concluding that companies are wasting on average 37 percent of their software spending—unacceptable in any other department!

Automate the Waste Away

All of the waste accumulated in the United States, the country with the highest percentage, amounts to $30 billion in wasted software. If waste is such a big issue, why is IT not taking a more proactive stance and trying to lower costs? This boils down to an issue that it is no longer in the CIO job title, when it still should be. A CIO’s job is to add value to the business and one way to do so is to lower waste.

Even the most “lean” companies create an exorbitant amount of waste. Companies need to take a position closer to their customers so they can better deliver on needs and desires, and thus reduce waste. Companies should also be mindful of the amount of inadequately managed software, as well as be prepared for audits.

Not all hope is lost though, and waste can be transformed into a beneficial entity. Companies must regain control over the software by implementing automation. This has not already been implemented because too often there is little proof to back the need for automation. Investors do not see the value and they do not endorse this. If IT managers want to gain funding, they need the evidence to back their claims.

Some of the titles that organizations may require are in actuality not utilized by the employees enough to warrant their expensive need. For example, Microsoft’s Visio Standard produces 52 percent waste, Project Professional produces 45 percent, and Office Professional Plus produces 7 percent. Still operating on a license basis with these vendors is one of the main proponents for unused potential.

Here is what happens when the waste is broken down by industry:

  1. Education – 47 %
  2. Energy – 46%
  3. Technology – 41%

There are plenty more industries with drastic numbers, but these top three really shed some necessary light on the problem.

Overall, software waste has not diminished this past year, but the problems can be sufficiently addressed with more and better automation. These numbers can be reduced when IT takes the time to acknowledge the problem, truly questions where this is rooted, and forms a solid case with evidence.

You can view the full report here: http://www.1e.com/blog/all_resources/the-real-cost-of-unused-software-2015/

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