SUBSCRIBE TO TMCnet
TMCnet - World's Largest Communications and Technology Community

CHANNEL BY TOPICS


QUICK LINKS




Shelfware Got Your Software Licensing Down?

Software Licensing Featured Articles

Shelfware Got Your Software Licensing Down?

October 07, 2014
By Susan J. Campbell, TMCnet Contributing Editor

In a world where the cloud is gaining more attention, how should the enterprise make better use of its software investments and future spending? In many an organization, spending on enterprise software is feeling the squeeze and shelfware is running rampant. Will this change the future of software licensing?


This is one question is that is addressed by Flexera in its Key Trends annual report. Conducted jointly with IDC (News - Alert), this research assesses key issues and trends within software licensing, studying input from intelligence device manufacturers, software vendors and enterprise IT executives and managers. In a blog recently posted by Flexera, the company shares some insight on this year’s findings.

The Challenge of Shelfware

If you’re not familiar with the term, shelfware is any software that an enterprise owns but isn’t using. Of the companies surveyed for this report, 96 percent say that at least a portion of the software they have invested in can easily be considered shelfware. Another 39 percent report that 21 percent or more of their spend dedicated to software is wasted on shelfware. Many are feeling the pinch, with 63 percent saying their software budgets will stay the same or shrink in the next two years.

Perpetual Software Licensing Losing Fans

Companies no longer want to be tethered to perpetual software licensing models. Alternative plans are gaining in popularity and only 45 percent of organizations today are still invested in software that demands the perpetual license. While these organizations reported the majority spend in this area, this segment is expected to drop to 36 percent in 12-24 months as alternative options are expected to rise to 26 percent. Usage-based models are on a slower include with 17 percent in use today and 18 percent expected within 24 months.

Flexible Licensing Gaining Popularity

One thing noticeable in survey results is that companies want options when it comes to software licensing. Those producers able to be flexible in the solutions offered are able to have a much better competitive advantage in the market. When a provider can identify customer needs, compare licensing model trends and respond with a solution that fits, customer loyalty quickly follows.

This market will continue to change over time, putting stress on software providers to develop solutions that meet market demands. Hopefully in doing so, they will be able to eliminate shelfware challenges so companies can get the most out of their investments. 




Edited by Alisen Downey

Software Licensing Homepage





Technology Marketing Corporation

2 Trap Falls Road Suite 106, Shelton, CT 06484 USA
Ph: +1-203-852-6800, 800-243-6002

General comments: [email protected].
Comments about this site: [email protected].

STAY CURRENT YOUR WAY

© 2024 Technology Marketing Corporation. All rights reserved | Privacy Policy