Non-compliance, Audits and True-up costs: 5 Findings that every IT Director should be aware of
In November 2013 an in-depth study by Express Metrix sought to gauge software audits trends, impacts and outcomes that produced important findings for anyone responsible for your organisation’s software compliance and audit readiness. The study was based on the responses from 178 IT professionals with manager or director level positions representing 10,000 US based organisations with at least 500 employees.
Five of the key findings of the study were:
- The top software compliancy challenge for organisations was that license agreements are difficult to understand and/or interpret. (This was followed by the complexity of the IT environment and the difficulty reconciling what’s installed with what’s used).
- 57% of participants report owing money (in true-up costs, settlements, and/or other penalties) to their software vendor at the conclusion of the audit, with 42% owing more than $50,000, with some as much as $5 million.
- Audit preparation time provided by the independent software vendors (ISV) varied from 3 weeks to 2 months, stated 55% of respondents.
- By far the greatest challenge related to audits was the sheer amount of time consumed by the audits— 45% of the audits lasted 3 months or longer (from initial audit request to resolution).
- The ten vendors most likely to audit in 2012/2013 were: Microsoft, Adobe, Autodesk, Oracle, SAP, IBM, McAfee, Attachmate, VMWare, and Symantec.
These findings should be a call-to-action. Are you ready for that contract renewal? What are you doing to stay compliant and avoid audits and costly true-up fees? Is your software asset management system up to the task?