Organizations Report Increase In Software Licensing Audits
Across the board, the largest complaints about software vendors and their business practices have come from increasingly aggressive software auditing practices. Once thought to be a small possibility, the software vendors now wield this big stick to drive up sales and of course ensure compliance. Given the 32 percentage gain since Q1 2008 in the percentage of respondents faced with a software audits, procurement managers, CIOs, and CEOs have paid attention (see Figure 1). Even the recent Gartner report from star analyst Jane Disbrow et al. shows that 61% of their customers have been audited by at least one software vendor.
Figure 1. Software Vendors Ramp Up Software Audits
Software Licensing Audits Masquerade As Sales Tactics In Disguise
Is this shocking? Should customers be concerned? Given the relatively strong compliance rates in the high 80′s, customers should be livid that vendors are willing to jeopardize a relationship to shake down for cash (see Figure 2.). Here are some key reasons for the audit:
- Check for compliance
- Identify installed base competitors
- Drive incremental license sales
- Prospect for up-sell/cross-sell
After speaking with 13 major software vendors, most admitted that software audit served two purposes. The first – keep customers in compliance. The second – shaking the bushes for new deals during the recession.
Figure 2. Most Organizations Were In Compliance Post Software Audit
