Money Bleeds | $32 Billion Dollar Cost of Unused Software
Welcome to the Money Bleeds series where we identify, and problem solve every single leakage of funds a company spends on its operations. This week it is the silent killer of Unused Software costs. Your company is throwing money away by paying for software and tools your team barely uses.
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The Facts
Companies waste 29% of their software budget on tools no one uses. (CIO Dive)
Half of all software licenses sit unused. That’s about $45 million wasted every month. (TechRadar)
The average office computer has $259 worth of unused software installed. (WalkMe)
In the U.S alone, businesses are flushing away $32 billion annually on unused software licenses/services (track.g2.com)
This isn't just a line item on a budget; it's a massive financial leak that could otherwise be channeled into innovation, talent acquisition, or market expansion.
Why?
Companies don’t keep track of what they actually use. Many organizations lack a clear inventory of their software assets, leading to redundant purchases and overlooked cancellations.
Employees don’t get trained, so they ignore the software. Without proper onboarding and continuous training, employees often ignore or underutilize available tools, rendering them obsolete.
Businesses buy more than they need, just in case. In the rush to adopt the latest technologies, companies frequently overestimate their needs, resulting in surplus licenses that gather digital dust.
How to Fix It
Do an audit. See what’s really being used. Implement a comprehensive review of all software assets to identify what's being used and what's not.
Make sure people know how to use what you’re paying for. Ensure that your team is well-versed in the tools at their disposal to maximize utility.
Stop overpaying for extra licenses “just in case.” Adopt a needs-based approach to software acquisition, avoiding the trap of unnecessary bulk purchases.