Software Over-Subscription 'Perfect Storm' Could Be Costing Your Company Millions
Blog | 10.08.2019

Software Over-Subscription ‘Perfect Storm’ Could Be Costing Your Company Millions

According to Gartner, spending on enterprise software, particularly cloud services and applications, was expected to grow faster than any other category of information technology this year, fueling an overall increase in global spending on technology. In fact, Gartner predicts worldwide IT spending will total $3.76 trillion by the end of the year.

The ease and elasticity of the cloud software deployment model is a boon to organizations, it can also lead to organizations being “over-served” and over-subscribed, with software seats paid for but unused.

In most organizations, it’s the procurement department that procures enterprise software – but few are actively monitoring actual software usage. That’s because it’s extremely difficult to track actual software usage, and very few do zero-based budgeting, so once a company is software over-subscribed, this trend can continue, unabated.

By employing a data-driven approach to software utilization that provides real insight into what software is used at the employee-level, organizations finally can assess their actual software usage. This can then give procurement the number they need to negotiate software license agreements that are based on fact, not assumptions, and companies can recoup thousands and even millions in software license leakage. 

Read more about how to implement effective, fact-based software metering in this Forbes article, “The Software Over-Subscription ‘Perfect Storm’ Could Be Costing Your Company Millions,” by Sapience Analytics’ CEO Brad Killinger.