Large Companies Spend 28 Percent of Software Budgets on Forced Upgrades
Origina reports that large U.S. and U.K. companies spend nearly a third of software budgets on vendor-mandated upgrades and licensing changes.
Large companies in the United States and United Kingdom allocate an average of 28 percent of their software budgets to vendor-driven upgrades, migrations, and licensing changes they did not actively choose. A survey of over 2,000 companies conducted by Origina describes these recurring costs and operational disruptions as a software tax.
The study reveals significant operational inefficiencies, with 91 percent of respondents retiring functional hardware prematurely to meet vendor support deadlines, resulting in an average loss of 1.65 years of useful life. Furthermore, 95 percent of companies paid for upgrades they expected would worsen outcomes, and 84 percent reported that senior engineering staff frequently prioritize these mandated changes over innovation.
Origina CEO Tomas O'Leary stated that the issue is universal, especially for older companies with entrenched technology stacks. He noted that the most recent vendor-driven change cost surveyed organizations an average of $12.87 million annually.
