A study by Censuswide, commissioned by Origina, reveals that companies in the US and UK spend approximately 28% of their IT budgets on unnecessary software products and services. Over 2,000 senior IT executives participated in the survey, highlighting a trend where businesses accept unwanted upgrades or license changes to maintain vendor relationships.
The financial impact is significant, with respondents reporting an average cost of $12.87 million for such forced initiatives over the past three years. Furthermore, 91% of organizations decommissioned functional hardware to meet software support timelines, losing an average of 1.65 years of equipment lifespan.
Operational efficiency is also affected, as 84% of IT leaders report that experienced engineers spend valuable time implementing mandatory migrations. Consequently, 90% of respondents noted that costs associated with software vendors contributed to the delay or cancellation of critical projects, including those related to AI and data processing.
The survey indicates that 76% of IT leaders feel they lack leverage in negotiations with major software providers. To address these challenges, 91% of participants advocate for government regulation to protect corporate software clients, while 82% support the establishment of standardized requirements for software maintenance.
