💰Enterprises Spend 28% of Software Budgets on Forced Upgrades
Your software budget is being drained by forced upgrades
TL;DR
Enterprises are spending a third of their software budgets on unwanted upgrades, costing an average of $12.87 million per organization. This diverts engineers from critical projects and retires hardware prematurely.
Enterprises are spending nearly a third of their software budgets on upgrades, migrations, and licensing changes they didn't choose. The average share of software budgets spent on these forced changes is 28 percent. This impacts not just the budget but also the reliability and performance of systems, with 95 percent of respondents paying for changes despite expecting worse outcomes. The most recent vendor-driven change cost respondents' organizations an average of $12.87 million. This diverts experienced engineers from other projects and retires hardware prematurely, with the average remaining useful life of retired hardware being just 1.65 years. The costs extend beyond software, affecting hardware and delaying AI and data projects.
Key Points
Enterprises spend 28% of their software budgets on unwanted upgrades and migrations.
The most recent vendor-driven change cost organizations an average of $12.87 million.
95% of respondents paid for changes despite expecting worse reliability and performance.
84% of respondents said engineers were diverted from other projects to handle upgrades.
90% of respondents said vendor-driven costs delayed AI or data projects.
Why It Matters
If you're managing enterprise software budgets, you're likely spending 28% on unwanted upgrades costing an average of $12.87 million. This impacts reliability, performance, and diverts engineers from critical projects. Smaller organizations may find negotiating leverage with vendors lacking, exacerbating the issue.
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