The Source

Winter 2003



Dusting Off the Shelfware

 

Waste is never pretty, and in tough times, it is especially offensive. Yet, a startling number of businesses allow expensive software systems to languish unused on the shelf.

Licensing and maintenance fees for this unused or underused software — dubbed shelfware by IT specialists — cut into the budget at 85 percent of companies with supply chain management software, according to a recent survey by AMR Research, a Boston-based firm specializing in information technology issues. Two-thirds of companies with procurement software don’t use it in its primary application.

In another study, based on a Morgan Stanley survey of chief information officers at 300 companies, a third of those responding reported unused licenses for databases, and a fifth said they had unused enterprise resource planning licenses.

Shelfware Inventory
To get a handle on how this kind of waste may be affecting your operation, the first step is to conduct a shelfware inventory. Systematically compare your company’s licensing documentation with actual usage. In addition to revealing shelfware, an inventory can help you spot any unlicensed software, giving you the chance to eliminate the legal risks that come with using unauthorized programs.

Another advantage of an inventory is finding out if employees have access to appropriate software and if they are adequately trained to use it for maximum productivity.

The Business Software Alliance (BSA) offers a number of tools on its Web site (www.bsa.org) to help conduct such an inventory. No matter what tools you use, the BSA recommends gathering data showing the product name, version number, and serial number.

The inventory should cover floppy disks and CDs used in installation, program manuals and documentation, and invoices or proofs of purchase showing your right to use the software, according to the BSA.

Savings Opportunities
The information provided in your inventory may lead to savings both in the short run and over the long haul. A possible immediate advantage might be the opportunity to put shelfware to use to meet the needs of departments requesting new software.

Longer-range advantages may come from a reevaluation of your IT function. If your company leaves software decisions and management up to individual departments, look into the possibility of centralizing IT.  

Companywide technology management can help eliminate duplication and increase opportunities to use what you already have.

 

Perisho Tombor Loomis & Ramirez
901 Campisi Way, Suite 250
Campbell, CA 95008
408-558-0500
info@ptlr.com

 

 

The articles in this newsletter are general in nature and are not a substitute for accounting, legal, or other professional services. We assume no liability for the reader's reliance on this information. Before implementing any of the ideas contained in this publication, consult a professional advisor to determine whether they apply to your unique circumstances.

© 2003