Software is eating up more and more of the IT budget - and the appetite is growing. According to the Boston Consulting Group, the proportion spent on software has grown from 13 to 21 percent since 2019. This means that one in five IT dollars is now spent on licences.
But the problem is not just about prices. It's about lack of control.
In many businesses, apps and systems are purchased in a decentralised manner, often without coordination or a comprehensive overview. New pricing models, packages and acquisitions create an increasingly confusing landscape. The result? Millions disappear annually in unused licences, duplicate purchases and agreements that no one really knows who owns.
(This opinion piece was written by CEO, Jon Ivar Bjørtomt, and was first published in Computerworld.)
Traditional negotiations and framework agreements are no longer enough. Cost control must become a continuous part of operations - not an annual exercise.
For many organisations, the benefit lies in the basics: overview, automation and disciplined follow-up. However, the numbers tell a different story - many businesses are still spending millions on licences that are never used. Not only is this costly, but it can also create unnecessary security risks when inactive users still have access.
Adite finds that, on average, companies reduce their software costs by at least 25 per cent by following these principles:
1. Get an overview.
Build a holistic SaaS inventory with clear cost allocation. Collect data via APIs and add manual sources where needed. Only when you know what you have you can make good decisions about what you need.
2. Manage your renewals - don't let them manage you.
The classic «auto-renew» trap is costly. A contract archive with an overview of the system owner and automatic notifications before renewal makes it possible to stop, adjust or renegotiate in time.
3. Make consumption visible.
Show what is spent - and what is not. When costs are visible at department and project level, responsibility and ownership of consumption will increase.
4. Automate the lifecycle.
Link licence management to the identity system (e.g. Entra ID). New employees automatically get the right licences, while inactive users lose them. The Otheo platform can automate purchases, cancellations and reallocations - without manual follow-up.
5. Benchmark and negotiate regularly.
Adite sees many businesses paying around 15 per cent more than necessary for their licences. The market is changing fast - make sure your agreements do the same.
Software costs are no longer a technical matter - they're a management responsibility.
Successful organisations see software management as an ongoing process, not a sporadic effort. It's about building systems and routines that provide control, insight and flexibility.
Those who get it right don't just cut costs. They're freeing up resources, improving safety - and creating room to innovate.
In short: The winners of the future are those who take back control - one licence at a time.