Vendor-driven software upgrades consume 28% of enterprise software budgets

Large enterprises spend an average 28% of software budgets on vendor-driven upgrades, migrations and licensing changes they would not have chosen, according to an Origina study reported by Reuters. The report calls the recurring burden a “software tax,” not a government levy.

Censuswide surveyed 2,018 senior IT decision-makers in the US and UK. Ninety-five percent said they had paid for a vendor-driven change they believed would reduce performance, reliability or value; 84% said engineering staff often or always spent time on such work instead of innovation.

The most recent change cost organisations an average $12.87 million, while 34% said vendor-driven costs made a major contribution when an AI or data programme was slowed or cancelled. Because the research was commissioned by a software-maintenance provider, it is a survey of respondent experience, not a neutral industry benchmark.

Image: Origina.

Sources

• Reuters report
• Origina primary release