Study by Flexera Software and IDC: Enterprises wasting money on … – funkschau

         30.09.2014
        of
       
           
               Ralf Ladner
             
                           
     
   

            The study “2013-14 Key Trends in Software Pricing & amp; Licensing Report” by Flexera Software and IDC shows that companies despite saving projects and decreasing software budgets continue to waste money on shelfware, ie nichtbenötigter software. At the same time, a clear trend away from perpetual licenses through to subscription and usage-based license models can be observed, as companies want to want more flexibility and more value out of the software costs.
       

                 
             
                  Source: © Flexera
             
             
         

The study “2013-14 Key Trends in Software Pricing & amp; Licensing Report” ^[1] is that almost all companies waste money for unused software – so-called shelfware. 96 percent indicate that at least part of the purchased software can be described as shelfware. With 39 percent reported a large part of that at least 21 percent of software costs are spent on shelfware. At the same time budget to be reduced more. Almost two-thirds of companies (63 percent) say that the software budget in the next two years either stagnate or decrease.

“shelfware accumulates easily when companies no best practices and technologies for the capture, use management and optimization of the software portfolio proactively, “says On Konary, research vice president for Software Licensing and Provisioning at IDC. “Companies need knowledge of where and how software licenses are used, and need to match with the complex provisions in the license agreement that data. With this information, CIOs can identify shelfware, eliminate waste and allocate their budgets more effectively “

The study reveals also that the traditional procurement model for software -., The perpetual software license – is much less frequent application. Currently only say 45 percent of the companies that the majority of their software portfolio based on open-ended licenses. In 12 to 24 months, this proportion will fall to 36 percent.

alternative licensing models are becoming increasingly popular. Almost a quarter of respondents (24 percent) indicates that the majority of their software portfolio based on subscription licenses. In 12 to 24 months, this proportion will rise to 26 percent. Use 17 percent of their software inventory usage-based licensing models. In 12 to 24 months, this proportion increases to 18 percent.

“Sometimes it makes little sense to pay the full price for software, if still uncertainty about the expected benefit is,” said Steve Schmidt, Vice President of Corporate Development at Flexera Software. “In their search for ways to optimize some companies prefer payment models with which they can bring their costs more in line with the benefits. Some pay a subscription model for certain periods and other usage-based models rely on to pay only for used features, functions or capabilities. “

             

1. http://learn.flexerasoftware.com/SLO-WP-SW-Budgets-Waste-Shifts-Software-Licensing?utm_source=Marketwire&utm_medium=PR&utm_campaign=2014PricLicRpt3-ShelfwareWaste

                 
             

Part 1
                 
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1. companies wasting money on Unneeded Software (current page)

                         
                 
                     
                             

2. Flexible licensing options