Report: 24% of firms have paid hundreds of thousands in audit charges

Report: 24% of firms have paid hundreds of thousands in audit charges

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Twenty-four p.c of firms have paid hundreds of thousands in audit true-up charges over the previous three years to firms equivalent to Microsoft, Oracle, and IBM, in line with a brand new report from Flexera.

Pie chart. Title: twenty-four percent of respondents paid more than $1 million in true-up costs and penalties over the past three years. Subheader: Estimate how much your organization has paid over the past three years as a result of audits by software vendors (including penalties or unbudgeted true-ups). 9% spent more than $5 million. 15% paid $1 million to $5 million. 10% paid $500K to $1 million. 8% paid $250,000% to $500,000. 11% paid $100,000 to $250,000. And 17% paid less than $100,000.

The Flexera 2022 State of IT Asset Administration report surveyed 465 technical professionals from across the globe and throughout a broad cross-section of organizations. The contributors offered insights into their IT asset administration (ITAM) practices. Greater than half of collaborating organizations make use of a minimum of 5,000 folks, whereas greater than one-third make use of 10,000 or extra.

A key discovering from the report: Company IT professionals face dueling expectations.

On one hand, IT, and particularly IT asset managers, have to guard their firm in opposition to software audits that traditionally can price hundreds of thousands. Fifteen p.c of respondents paid between $1 million and $5 million in audit true-up prices up to now three years, whereas 9% have paid greater than $5 million. Because of the excessive greenback prices of audits, 70% of respondents mentioned responding to audits is a accountability, the very best share of any accountability.

On the identical time, many respondents are anticipated to do extra than simply shield in opposition to audits. They’re anticipated to guide innovation and drive main price financial savings and cost-avoidance initiatives, equivalent to optimizing software program spend (54%), enhancing the reclamation of underused or unused software program (49%), and enhancing administration of SaaS functions (48%).

SaaS and cloud stay a problem for enterprises. Solely 28% of IT Asset Administration respondents observe and optimize the usage of public cloud infrastructure-as-a-service (IaaS) and platform-as-a-service (PaaS) — a quantity that didn’t change over final 12 months. One-third (34%) observe SaaS utilization, a slight lower from final 12 months (35%).

Not solely do audits price cash, however the specter of pricey future audits distract IT, protecting professionals from specializing in rising the velocity of innovation or main vital price financial savings initiatives throughout SaaS, cloud, and on-premises software program.

Learn the full report by Flexera.

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