Non-compliance, Audits and True-up costs: 5 Findings that every IT Director should be aware of

Non-compliance, Audits and True-up costs: 5 Findings that every IT Director should be aware of

Important findings for any IT director or those persons responsible for your organization’s compliance and audit readiness, were revealed in an in-depth study by Express Metrix seeking to gauge software audit trends, impacts, and outcomes across a statistically significant cross-section of the marketplace. The study was conducted in November of 2013 based on 178 respondents who were IT/IS professionals with manager- or director-level positions, representing a 95% confidence sample of 10,000 US-based organizations of at least 500 employees .

Five of the key findings that should warrant your attention are:

  1.  The #1 software compliancy challenge for organizations is that license agreements are difficult to  understand /interpret. (The #2 challenge was the complexity of the IT environment. And # 3 was difficulty reconciling what’s installed with what’s used).
  1.  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 at least $50,000, up to as much as $5 million.
  1.  Audit preparation time provided by the ISV (independent software vendors) varied from 3 weeks to 2 months, stated 55% of  respondents.
  1.  Respondents overwhelmingly report the greatest challenge related to audits is the sheer amount  of time consumed by the audits— 45% of the audits lasted 3 months or longer (from initial audit  request to resolution).
  1.  The ten vendors most likely to audit (for 2012/2103) are: Microsoft, Adobe, Autodesk, Oracle,  SAP, IBM, McAfee, Attachmate, VMWare, and Symantec.

These findings should be a call-to-action. What are you doing to stay compliant and avoid audits and costly true-up fees? Is your Software Asset Management system up to the test?

If you would like to find out more information about Software Asset Management and start looking into whether your SAM system is capable of handling your organization’s current license complexities, especially as it relates to cloud-based applications, then consider attending our  free Software Asset Management webinar on April 29th.

TCGi specializes in providing sound guidance to helping companies manage their software compliance and avoid audit headaches. Please join us for the webinar.

Thank you.