Enterprises keep buying software upgrades that IT thinks will make things worse

A survey of 2,018 senior IT decision-makers at large US and UK companies found that firms spend an average of 28 per cent of their software budgets on upgrades, migrations and licensing changes they do not want. The findings suggest that many organisations feel unable to refuse vendor demands, even when IT leaders believe the changes could reduce performance, reliability or business value.

Ninety-five per cent said their organisation had paid for at least one such change in the past three years, and 53 per cent said it had happened more than once. Three-quarters reported little negotiating leverage, while 80 per cent said leaving major vendors would cause significant disruption; respondents also said spending pressures affect innovation, security, HR and customer-facing investment. The survey was commissioned by Origina, a software maintenance provider, and its report recommends agreeing exit terms during initial vendor negotiations.