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Enterprises app stores may risk unbudgeted software costs

Matthew Finnegan | Nov. 14, 2013
Lack of licence usage oversight could lead to vendor audit penalties warns IDC

Enterprises introducing app stores could be leaving their business open to unexpected software audit penalties, a report has suggested.

A survey of respondents from 750 end-user enterprises, software ISVs and intelligent device manufacturers highlighted that while many respondents (63 percent) have introduced app stores to quickly deploy approved apps as part of bring your own device (BYOD) plans, 35 percent have experienced problems around software licence tracking.

The 'Application Usage Management Report', conducted by analysts IDC and application management software provider Flexera, indicated that over half of organisations surveyed do not have procedures to coordinate app store self-service with demands around software licence compliance. Just over a third, 35 percent, don't know how to achieve that balance, and a quarter, 24 percent, have no plans to better manage their app store licences.

The report argues that by failing to keep an oversight of the various licensing agreements, businesses are leaving themselves open to penalties as part of vendor audits, due to a lack of oversight of licence usage. This means enterprises could be landed with unexpected and unbudgeted software costs.

"Consumerisation of IT is taking root because employees have become sophisticated, productive users of technology in their personal lives. Companies want to tap that productivity by making technology in the workplace easier to access and use," said Amy Konary, research vice president, Software Licensing & Provisioning, IDC.

"But many consumerisation of IT programmes, like BYOD and enterprise app stores, can create unanticipated software licence compliance risk and unbudgeted costs, which organisations must be aware of and plan for in order to avoid."

Maureen Polte, Vice President of Product Management at Flexera said that "greater access to software means greater use and risk of inadvertently falling out of compliance - exposing the organisation to unbudgeted software audit true up penalties".

Polte added: "Organisations need to be aware of these risks and avoid them by tightly integrating their enterprise app store with their software licence optimisation technology and processes."

 

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