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Businesses are wasting millions on unused software licences

(Image credit: Image source: Shutterstock/TechnoVectors)

As businesses try to remain operational during the Covid-19 pandemic, they are looking to cut costs wherever they can. One way they could save a lot of money, which they seem to be neglecting, has to do with software licenses (opens in new tab).

According to a new report from Insight, enterprises spend an average of $2.78 million every year on software licenses for applications they don't even use.

At the same time, they are laying off valuable staff members. Since March this year, more than half of businesses have been forced to downsize, while more than a quarter downsized their IT teams specifically. Some consolidated physical spaces, while others pushed their existing IT assets to the edge.

It's not just existing software (opens in new tab) that could be optimized – but also the new apps that many organizations purchased in response to the Covid-19 pandemic. Half of the IT teams surveyed for the report said there is a clear need to optimize their IT support investment and software, while an even greater number (60 percent) said the same about private cloud and IaaS.

Organizations have thus ended up with a large amount of duplicate hardware and software, with many being unable to scale their software licenses to the number of employees they have. At the same time, more than two thirds (69 percent) are struggling to manage the increasing amount of personal hardware that employees have been using since lockdown was first introduced.

“Organizations have been struggling to address systemic challenges around cost management for several years. If they double down on their cost optimization efforts, they could avoid making decisions that will almost certainly impact their ability to execute digital transformation plans,” said Emma de Sousa, Senior Vice President EMEA at Insight.

“There are countless opportunities for organizations to optimize their costs and save money without harming their ability to operate effectively.”

Sead Fadilpašić is a freelance tech writer and journalist with more than 17 years experience writing technology-focussed news, blogs, whitepapers, reviews, and ebooks. And his work has featured in online media outlets from all over the world, including Al Jazeera Balkans (where he was a Multimedia Journalist), Crypto News, TechRadar Pro, and IT Pro Portal, where he has written news and features for over five years. Sead's experience also includes writing for inbound marketing, where he creates technology-based content for clients from London to Singapore. Sead is a HubSpot-certified content creator.