Featured Article from Software Licensing

US and UK Enterprises Generating an Alarming $34 Billion in Annual Software Waste

September 22, 2016




A recent 1E report revealed software waste is on the rise, with the average large enterprise throwing away around $7.4 million a year on unused and under-used software. That adds up to a shocking total of $34 billion in total annual waste in the U.S. and U.K., with roughly 38 percent of all installed software going to waste.

As a planet, we’ve become increasingly careful about handling our physical waste and the movement to become greener is thriving in the technology sector. But that hasn’t been the case in the virtual world, as the 1E report so shockingly reveals. For the average company with 30,000 software licensing seats, more than $2 million a year could be saved simply by improving and streamlining license management.

To understand how to cut waste, it’s important to look at exactly where waste is adding up. 1E found that Camtasia Studio, a filmmaking tool, is the single most wasted enterprise license, with a ridiculous 67 percent of installations going unused. The software is closely followed by Crystal Reports, which is wasted 63 percent of the time. Other major offenders include InDesign, Dreamweaver, Visio, Illustrator, Project Professional, Photoshop, TextPad and WinZip.

The education market appears to be the biggest offender in software licensing neglect, generating 47 percent of all enterprise software waste. The government comes in second, and is responsible for 28 percent of waste.

Fortunately, a number of software license management and optimization solutions exist to nip waste in the bud. These offerings audit and track license usage, enforce compliance on a user basis, and cull unused licenses, recycling them for users who legitimately need a software or service. The result is millions of dollars in savings and an automated, ongoing management tool for staying on top of software usage and license management.

An additional benefit of license management tools is that many of them work for both on-premises installations as well as cloud-based applications and services, providing a single platform for managing both types of licenses and subscriptions. Simply put, businesses can no longer afford to tolerate software waste in a time when a plethora of applications and services are being installed and used at a breath-taking rate. By using a software license management solution, businesses can practically eliminate waste and realize massive savings in the process.




Edited by Maurice Nagle
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