Feeds

UK small.biz blows £1.5bn on useless software

Staggering annual cost of ill-advised expenditure

  • alert
  • submit to reddit

Reducing security risks from open source software

British small and medium-sized companies are wasting £1.5bn a year on badly-designed business software that does not meet their commercial needs.

According to a poll of 400 UK SMEs conducted by software developer Benchmark Software, the problem is due to a chasm opening up between what companies need from technology and what software vendors actually supply them.

Almost 40 per cent of SMEs were found to have wasted big chunks of their hard-won IT budgets by purchasing software they never use. When asked to specify the reasons for this, nine out of ten firms admitted that it was because the software was difficult to use, while more than half said that it was because the software was not what they had expected.

This problem was found to occur despite the fact that over 60 per cent of respondents said they had difficulty in justifying software expenditure.

The study also found that over three quarters of small companies have trouble working out the differences between software packages; while 70 per cent complained that it was a struggle to find software companies that allow them to "fine tune" software to suit their specific business needs.

"As the UK SME software market was estimated to be worth £4.1bn last year, this means that British SMEs could be wasting £1.5bn buying software they never use," said Simon Harvey, managing director of Benchmark Software.

"Vendors have become their own worst enemy with many software companies unable to say what they actually do, confusing prospective buyers as well as existing customers. Too many software companies try to sell to SMEs by using confusing marketing jargon to emphasise special functions and features, rather than explaining their products' basic purpose."

Harvey added that he expects the problem to get even worse as software companies which have traditionally sold into the enterprise market begin to target the SME sector. ®

Seven Steps to Software Security

More from The Register

next story
Stick a 4K in them: Super high-res TVs are DONE
4,000 pixels is niche now... Don't say we didn't warn you
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
Amazon Reveals One Weird Trick: A Loss On Almost $20bn In Sales
Investors really hate it: Share price plunge as growth SLOWS in key AWS division
Bose says today is F*** With Dre Day: Beats sued in patent battle
Music gear giant seeks some of that sweet, sweet Apple pie
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Too many IT conferences to cover? MICROSOFT to the RESCUE!
Yet more word of cuts emerges from Redmond
prev story

Whitepapers

Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Seven Steps to Software Security
Seven practical steps you can begin to take today to secure your applications and prevent the damages a successful cyber-attack can cause.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.