“Often companies allocate 15 to 25 per cent of their annual IT budget to license fees."
Fred johnsen, pa enterprise resource planning expert
In an article about IT licence management, PA’s Fred Johnsen, enterprise resource planning expert, explains how the number of IT licence audits will increase in the future. This is due to the fact that a large part of software companies’ turnover is based on license revenue, which derives from their annual maintenance fee.
Fred refers to interviews with some of PA’s multinational clients in 2012, where they explained that IT licences represent a major part of their overall IT budget.
“Often companies allocate 15 to 25 per cent of their annual IT budget to license fees,” says Fred, adding that the majority of the organisations interviewed did not have a central register showing which of their IT licences had been paid for or were even being used.
Fred also highlighted that only a few companies have common organisation-wide processes for the purchase, renewal or re-usage of IT licenses.