Software License Compliance Audits Are Contributing to

Software License Compliance Audits Are Contributing to Organizations'
Cost & Risk Exposure According to Flexera Software 
New Software Pricing & Licensing Survey Details Vendor Audit
Practices and Resulting Unbudgeted "True-Up" Penalties Companies Must
SCHAUMBURG, IL -- (Marketwire) -- 12/06/12 --  Software license
compliance audits are an established industry practice by which
vendors are allowed to investigate customers' actual software usage,
and seek additional compensation in the form of a "true-up" penalty
if use exceeds licensing terms. According to Flexera Software's 2012
Software Pricing and Licensing Survey, prepared jointly with IDC,
software vendors are continuing to exercise their rights to audit
their customers and true-up. 
Part of the problem can be traced to challenges companies face
tracking and managing software license use, and reconciling that use
to ensure compliance with licensing terms. According to the survey,
one third of enterprises surveyed said they are either dissatisfied
or very dissatisfied with their current method for managing software
licenses and usage. 
And the reason for that dissatisfaction is clear -- 38% of
enterprises indicated that 11% or more of their application spend is
associated with applications that are overused, and therefore out
compliance, up from 26% one year ago. Moreover, the survey shows that
vendors are exercising their rights to recapture some of that revenue
leakage due to noncompliance via software audits and true-ups. 64% of
enterprises reported that they have been audited over the last 18-24
months. And large enterprises -- defined in the report as those with
greater than $1B in revenue -- were significantly more likely to be
audited three times or more in the last 18-24 months. Moreover, 24%
of enterprises said their total true-up paid over the past year was
$1 million or more. 
Finally, the survey revealed that the major software vendors -- those
that typically account for a significant portion of most
organizations' enterprise application spend -- are also the most
aggressive auditors. Enterprises reported that over the last year,
they've been audited most frequently by Microsoft, Oracle, IBM, SAP
and Adobe. 
"Software usage that exceeds the negotiated license terms can
represent significant lost revenue for software vendors," said Amy
Konary, research vice president - software licensing and provisioning
at IDC. "There are many factors that make license compliance
difficult, including license and IT environment complexity, lack of
automation, and decentralized IT. IDC expects that vendors will
continue to enforce their license agreements with audits, and advises
enterprises to pro-actively track and manage usage of their software
license assets." 
"Never has the need for Software License Optimization been more
pronounced," said Randy Littleson, Senior Vice President of Marketing
at Flexera Software. "Organizations face tremendous challenges
tracking and managing software licenses and reconciling that use
against their software license agreements. If existing license
management strategies aren't significantly reducing or eliminating
painful software true up penalties -- optimizing the software license
estate often eliminates or significantly reduces that risk exposure." 
Click here to access the complete survey results. 
the 2012 Key Trends in Software Pricing & Licensing Survey 
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About the 2012 Key Trends in Software Pricing and Licensing Survey 
Since 2004, Flexera Software has produced the Key Trends in Software
Pricing and Licensing Survey in conjunction with several industry
partners such as the Software and Information Industry Association
(SIIA), the Centralized Electronic Licensing User Group (CELUG), and
Electronic Design and Automation (EDAC). Since 2009 Flexera Software
has joined forces with IDC for the survey. Amy Konary, research vice
president - software licensing and provisioning at IDC, prepared the
analysis and presented these findings at Flexera Software's
SoftSummit Regional Briefings. Executives and managers at 334
software vendors, intelligent device manufacturers, and enterprises
participated in the survey. 
About Flexera Software  
Flexera Software is the leading provider of strategic solutions for
Application Usage Management; solutions delivering continuous
compliance, optimized usage and maximized value to application
producers and their customers. Flexera Software is trusted by more
than 80,000 customers that depend on our comprehensive solutions --
from installation and licensing, entitlement and compliance
management to application readiness and software license optimization
-- to strategically manage application usage and achieve breakthrough
results realized only through the systems-level approach we provide.
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For more information, contact:
John Lipsey 
(224) 465-9139 
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