For businesses, it is time to rationalize the fleet software licenses. This is the conclusion of an IDC study conducted for solutions vendor Flexera Software License Management. Based on the responses of 430 user companies in the world, the survey shows that nearly two-thirds of them believe that their software budget will stagnate or regress over the next two years. They are 37% believe it will improve.
To address these constraints, Flexera advanced towards the ‘shelfware’, ie software purchased but not deployed. 96% of respondents recognize that much of their budget is squandered on unused licenses. 39% of them, this share is even higher than 21% of total software budget.
The paradox? At the same time, other parts of the software park, a large part of its business beyond use rights, exposing themselves to adjustments during audits by publishers. According to IDC, 85% of organizations do not meet the terms of their license agreements . A situation obviously risky because large publishers multiply the audits (63% of audited over the last 18 to 24 months companies) and adjustment invoices are salty (one in two has paid penalties in the last two years, in 21% of cases, the pain was more than a million dollars). Moreover, the audit itself is likely to feed the shelfware: publishers taking advantage of the audit findings to place new licenses (in exchange for cancellation of the invoice regularization), business licenses n have not necessarily need right away.
In this situation, buyers are trying to find more efficient models. IDC notes and sharp decline of the dominant model, the perpetual license (resulting in a high cost of entry, against a right of permanent use). Only 45% of companies now use this model explains over 50% of their licenses. IDC, the rate will drop to 36% within 12 to 24 months. The decay of this model is due to the rise of licenses paid either as a subscription (Saas but also for software typically installed on site), or as pay-as (features used, time spent in the application, volume of data …). 24% of companies already prefer the subscription for more than 50% of their software assets. 17% of organizations, it is the model for use dominates. According to IDC, these two types of licenses are expected to grow at 12 to 24 months. Flexera also notes that flexible licensing models becomes “ competitive advantage ” for software
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