The Hidden Cost of Software: Why You’re Wasting Money and Time

Have you ever bought a gym membership and then only gone twice?

You know that frustrating feeling of throwing your money away? Now, imagine your company doing that every day with software licenses. Here’s the truth: you’re probably spending too much, getting too little out of it, and unnecessarily complicating your team’s work.

The Unfulfilled Promise of Software

Companies buy software as if it were toilet paper: the more you have, the better. But that’s not how it works. Software licenses—especially “named user” licenses—pile up and sit unused. Nexthink found that nearly 50% of purchased licenses are never used. This means that, every year, the global IT industry wastes $536 million on nothing.

Now, think about your company. How many licenses do you have, and how many are actually being used? I bet you won’t like the answer.

Floating Licenses: The Winning Strategy

Imagine having a company fleet of 100 cars, one for each employee. The cost of purchasing, maintaining, and insuring them would be enormous, and many of these cars would sit parked and unused for most of the day. Now, however, consider an internal car-sharing system: with just 30 vehicles shared among employees based on actual needs, the company can drastically reduce costs while still ensuring mobility for everyone.

That’s exactly how floating licenses work. Instead of purchasing 100 individual licenses, you buy 30 that are dynamically assigned to whoever needs them. The result? A company with 90 employees can cut licensing costs by 70%. And what about that money? Invest it in innovation, training, or simply better coffee for your employees.

Time Is Money (And You’re Losing Both)

Every time an employee can’t access software because all the licenses are in use, work comes to a halt. And when work comes to a halt, you lose money. Smart management of floating licenses reduces downtime by 40%. A manufacturing company that adopted this system saved 200,000 euros in lost production in just six months.

How much money are you losing without even realizing it?

Why Do Companies Resist Change?

Even though the numbers speak for themselves, many companies are still clinging to the old model. Why?

1. Fear of Change: “We’ve always done it this way.” But that’s exactly why you’re inefficient.
2. Perception of technical difficulty: “Too complex to implement.” But modern monitoring systems are plug-and-play.
3. Lack of data: If you don’t know how many licenses are being wasted, you don’t see the problem.

How to Overcome Resistance and Take the Leap

If you want to stop wasting money, here’s what to do:

1. Conduct an audit: Analyze which licenses are actually being used.
2. Launch a pilot project: Start with one department and demonstrate its value.
3. Build Your Team: Show decision-makers the true economic impact.
4. Work with experts: Specialized partners can integrate the solution seamlessly.

The Future Lies in Operational Intelligence

Monitoring and optimizing software licenses isn’t just about costs. It’s a shift in mindset. The most agile companies know that every resource—from time to software—must be used strategically. It’s no longer a choice: either you do it, or you fall behind.

Do you want to be the one driving change or the one experiencing it?

 

Find out how Observer can transform the way you manage your licenses.

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