Enterprise software costs threaten AI investment, innovation as firms spend 28% of budgets on unwanted changes: Report
According to a report by Origina published in collaboration with Thinkers50, large enterprises are facing budget pressures as vendor-initiated software changes consume substantial portions of their IT spending. Unplanned software upgrades, migrations and licensing modifications account for an average of 28 percent of enterprise software budgets, which directly reduces capital available for strategic priorities. These budget constraints are limiting enterprises' ability to invest in emerging technologies, particularly artificial intelligence initiatives, and curbing broader innovation spending.
Key points
- 28% of enterprise software budgets consumed by vendor-driven changes
- Unplanned upgrades, migrations and licensing modifications are primary drivers
- Budget constraints limiting AI and innovation investments
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