Key facts
- Enterprises spend 28% of software budgets on unwanted upgrades, migrations, and licensing changes.
- 95% of IT decision-makers believe vendor-driven changes reduced performance, reliability, or business value.
- 53% of respondents have paid for such changes more than once.
- 76% of IT leaders feel they have little negotiation leverage with vendors.
- 80% of IT leaders believe moving away from major vendors would cause significant disruption.
A survey commissioned by Origina found that enterprise-sized businesses spend an average of 28% of their software budgets on unwanted upgrades, migrations, and licensing changes. The report, titled "The Software Tax," surveyed 2,018 chief information officers and senior IT decision-makers in the US and UK, all working at companies with at least $1 billion in annual revenue. The survey, conducted by Censuswide, revealed that 95% of respondents believe their organization has paid for vendor-driven changes that reduced performance, reliability, or business value, with 53% having done so more than once. Many IT leaders feel they have little negotiation leverage and that moving away from major vendors would cause significant disruption.