A survey of 2,018 senior IT decision-makers at large enterprises reveals that companies spend an average of 28 percent of their software budgets on unwanted upgrades, migrations, and licensing changes. About half of the respondents are from the US, and the rest are from the United Kingdom, all working at companies with at least $1 billion in annual revenue. The report, titled "The Software Tax," highlights that 95 percent of respondents have paid for vendor-driven changes they believed would reduce performance, reliability, or business value.
Furthermore, 53 percent have done so more than once. A significant 76 percent of respondents feel they have very little real leverage in negotiations, and 80 percent say moving away from major vendors would cause significant disruption. Origina, which commissioned the report and provides enterprise software maintenance, points to independent software maintenance as a solution, though its recommendations may reflect a potential bias.
The third-party research consultancy Censuswide conducted the survey. Tomás O'Leary, Origina's CEO and founder, notes that the market leaves experienced technology leaders with little room to refuse unwanted upgrades, resulting in costs that appear in budgets, engineering time, and unfunded innovation.
Source: Ars Technica · Summarized by HeadlinesBriefing