💰Big Biz Spends 28% on Unwanted Software Upgrades
Half of Big Companies Forced into Costly Upgrades
TL;DR
A survey of 2,018 CIOs shows 53% of large firms paid for unwanted software upgrades, wasting 28% of their budgets. Companies with $1B+ in revenue feel powerless in negotiations.
A survey of 2,018 CIOs reveals that 53% of large firms paid for unwanted software upgrades, wasting an average of 28% of their software budgets. These upgrades often come with the promise of reducing performance, reliability, or business value. Companies with $1B+ in revenue feel powerless in negotiations, with 76% reporting very little leverage. The result is less funding for innovation, HR, security, and customer-facing investments. The survey highlights the need for legal protections similar to those available to long-term residential tenants.
Key Points
Survey of 2,018 CIOs and IT decision-makers from companies with $1B+ in revenue
53% of respondents have paid for unwanted upgrades more than once in the past three years
76% of respondents say their organization has very little leverage in negotiations
80% of respondents say moving away from major vendors would cause significant disruption
91% of respondents would support laws giving enterprises protections like long-term tenants
Why It Matters
If you're a CIO at a large enterprise, you're likely spending a quarter of your budget on unwanted software upgrades. This survey highlights the lack of leverage and the need for better legal protections. Companies with $1B+ in revenue are particularly affected, with 76% reporting very little leverage in negotiations.
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