Lack of Visibility into IT Software Can Be Costly
January 31, 2023

Tim Flower

Share this

IT leaders have a tremendous influence on how their organization functions, setting the tone for how their teams respond to digital transformation and approach strategic challenges. Though economists are warning of a multi-year recession, Gartner predicts that IT spending will increase in 2023. As a result, IT decision makers are feeling the pressure to invest wisely when it comes to software applications, while also finding savings to offset some of the rising costs. However, research shows IT leaders don't understand how their employees are using company-issued tools.

The result? Expenses are higher than necessary, there is poor employee technology adoption — and the related risk of either under or over provisioning — and there is a lack of productivity associated with inconsistent configurations.

What Aren't IT Pros Seeing and What Is it Costing Them?

A recent study revealed only an alarming 5% of IT decision makers who report having complete visibility into employee adoption and usage of company-issued applications, demonstrating they are often unknowingly careless when it comes to software investments that can ultimately be costly in terms of time and resources.

On average, employees use between 11 and 50 software applications per day, with IT leaders unclear how many are actively in use, for how long, or how frequently, or how many seats (licenses) are available/used for each application.

Software licenses can easily eat large portions of an IT budget unnecessarily by teams unknowingly subscribing to overlapping or unnecessary applications, in addition to employees retaining licenses from a prior role, or using applications they are not licenced to have, all which multiply spending. The fix, in theory, is simple: Organizations can avoid overspending by creating visibility into application usage, consolidating like-for-like software, and prioritizing applications that already share similar data and don't require hard labor to create integrations. In actuality, IT leaders are in the dark about the specific applications being used and how, meaning efficient consolidation is difficult or impossible.

Think of it this way: if an organizations' subscription licenses add up to $500 in total per device across 20,000 employees, reducing unneeded license counts by a conservative 5% and consolidating like-for-like titles for an additional 5% improvement could provide $1M in cost reductions that could be booked as savings or reallocated to other more strategic initiatives.

The True Cost of Poor Visibility: Employee Productivity

For technology adoption to be successful IT needs the full support of management and the individual department heads where it is being deployed. If organizations had full visibility into how employees are using the technology at their disposal, they might uncover that their teams don't have a full grasp on how to even use the tools properly which costs time and resources to address and resolve resulting issues.

Over 70% of IT pros reported it takes their teams between 6 to 24 hours to fully resolve a single employee issue, whether it's a desktop or web application problem

For example, over 70% of IT pros reported it takes their teams between 6 to 24 hours to fully resolve a single employee issue, whether it's a desktop or web application problem. That time spent is a combination of technical issues coupled with usability and employee education and it keeps employees from doing their work and IT teams from focusing on larger issues.

More often than not, one application error is part of a larger network or device problem that exhibits itself across the application's user base that inhibits productivity long-term over a large number of people. Approaching these problems as widespread technology issues rather than individual incidents that impact one employee at a time, and looking at it from the perspective of the employees (all of them) can help IT team's see a bigger picture and get to the root of issues faster and for more people all at once.

So, What Now?

IT pros are in a difficult position amid a looming recession which calls for efficient IT investment from the C-suite, yet data shows many aren't even clear on what tools they already have in place and what capabilities they are missing. With top level executives paying closer attention to overall digital transformation that is necessary for long-term success, it's crucial that IT leaders know how their organizations use their software and applications, and how that usage can be better managed for improved financial management in the future.

There are several ways to achieve this: implementing employee surveys, technical education for employees on their tools, and monitoring services to better see the full utilization picture. The onus, then, is on IT leaders to understand how to use this information for full organizational efficiency and cost savings.

Tim Flower is VP of DEX Strategy at Nexthink
Share this

The Latest

April 19, 2024

In MEAN TIME TO INSIGHT Episode 5, Shamus McGillicuddy, VP of Research, Network Infrastructure and Operations, at EMA discusses the network source of truth ...

April 18, 2024

A vast majority (89%) of organizations have rapidly expanded their technology in the past few years and three quarters (76%) say it's brought with it increased "chaos" that they have to manage, according to Situation Report 2024: Managing Technology Chaos from Software AG ...

April 17, 2024

In 2024 the number one challenge facing IT teams is a lack of skilled workers, and many are turning to automation as an answer, according to IT Trends: 2024 Industry Report ...

April 16, 2024

Organizations are continuing to embrace multicloud environments and cloud-native architectures to enable rapid transformation and deliver secure innovation. However, despite the speed, scale, and agility enabled by these modern cloud ecosystems, organizations are struggling to manage the explosion of data they create, according to The state of observability 2024: Overcoming complexity through AI-driven analytics and automation strategies, a report from Dynatrace ...

April 15, 2024

Organizations recognize the value of observability, but only 10% of them are actually practicing full observability of their applications and infrastructure. This is among the key findings from the recently completed 2024 Observability Pulse Survey and Report ...

April 11, 2024

Businesses must adopt a comprehensive Internet Performance Monitoring (IPM) strategy, says Enterprise Management Associates (EMA), a leading IT analyst research firm. This strategy is crucial to bridge the significant observability gap within today's complex IT infrastructures. The recommendation is particularly timely, given that 99% of enterprises are expanding their use of the Internet as a primary connectivity conduit while facing challenges due to the inefficiency of multiple, disjointed monitoring tools, according to Modern Enterprises Must Boost Observability with Internet Performance Monitoring, a new report from EMA and Catchpoint ...

April 10, 2024

Choosing the right approach is critical with cloud monitoring in hybrid environments. Otherwise, you may drive up costs with features you don’t need and risk diminishing the visibility of your on-premises IT ...

April 09, 2024

Consumers ranked the marketing strategies and missteps that most significantly impact brand trust, which 73% say is their biggest motivator to share first-party data, according to The Rules of the Marketing Game, a 2023 report from Pantheon ...

April 08, 2024

Digital experience monitoring is the practice of monitoring and analyzing the complete digital user journey of your applications, websites, APIs, and other digital services. It involves tracking the performance of your web application from the perspective of the end user, providing detailed insights on user experience, app performance, and customer satisfaction ...

April 04, 2024
Modern organizations race to launch their high-quality cloud applications as soon as possible. On the other hand, time to market also plays an essential role in determining the application's success. However, without effective testing, it's hard to be confident in the final product ...