smaller software — Businesses across Europe are increasingly turning to smaller software tools to cut IT costs while maximising the value of their existing software investments, according to a recent study by software broker Forscope.
Smaller software: Shifting IT Budgets
The report highlights a significant trend among EU businesses, with 52 per cent utilising cloud computing and a staggering 96 per cent relying on subscription-based Software as a Service (SaaS) solutions. Common software categories include office suites, financial management systems, enterprise resource planning (ERP) platforms, and customer relationship management (CRM) tools.
Mismatched Costs and Usage
One of the key findings of Forscope’s report is the often observed disparity between the costs of subscriptions and the actual utilisation of the features provided by these services. Many companies pay for functionalities that remain unused, prompting a reevaluation of their IT expenditures.
Innovative Approach to IT Solutions
Forscope proposes a new technical approach aimed at optimising IT infrastructure through the use of artificial intelligence (AI) tools. This method focuses on replacing large, cumbersome subscription platforms with smaller, targeted in-house applications. By adopting this strategy, firms could potentially reduce their total cost of ownership by up to 70 per cent over a span of three to five years.
Analysing Operational Needs
The optimisation approach revolves around a detailed analysis of each organisation’s operational needs. This includes retaining essential productivity tools while eliminating unnecessary features, as well as incorporating any missing functionalities. The focus is primarily on improving internal processes such as human resources systems, helpdesks, and reporting tools.
Companies can expect tailored solutions to be delivered in approximately three months, adhering to existing business standards. This swift turnaround is crucial for organisations looking to enhance their efficiency without incurring significant additional costs.
Demand for Sustainable Alternatives
Jakub Sulak, the chief executive of Forscope, emphasises the market’s shift towards sustainable alternatives to traditional subscription models. He notes a growing emphasis on security, data control, and the reduction of unnecessary expenses as companies grapple with their IT strategies.
Impending Software Support Deadlines
This report arrives at a pivotal time, as many organisations are facing significant software support deadlines for essential operating systems and office suites, including Windows 10 LTSC and older versions of Microsoft Office. These deadlines can create pressure on businesses to upgrade their systems promptly.
However, Forscope’s report reassures that “the end of manufacturer support does not automatically make existing software unusable or unsuitable for operation.” Instead, it encourages companies to consider alternative strategies that do not involve rushed mass upgrades.
Combining Solutions for a Smoother Transition
In light of these challenges, many organisations are opting for combined solutions. This includes acquiring software packages from firms that no longer require them, as well as implementing special security programmes from software suppliers. Such strategies aim to facilitate a smoother transition while maintaining operational integrity.
The report concludes that companies are increasingly seeking ways to manage their IT resources more effectively, steering away from one-size-fits-all subscription models in favour of custom solutions that better meet their unique operational demands.
