28% of Software Budgets at Large US and UK Enterprises Goes to Involuntary Upgrades
Large enterprises in the United States and the United Kingdom report that 28% of their software budgets is spent on upgrades they would not have chosen themselves. 78% of respondents said that after software is installed, the primary vendor decides when and how changes are made, and 95% have paid for upgrades they expected would make outcomes worse. The most recent vendor-driven change cost an average of $12.87 million per year, with 34% of respondents citing vendor-driven costs as a major factor blocking AI or data projects and 56% citing it as a moderate factor.
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Large US and UK firms report spending 28% of software budgets on upgrades they wouldn’t have chosen.
Once the software is installed, 78% agree their main supplier decides when and how it changes. Refusing can mean losing support on core systems, so 95% have paid for an upgrade they expected to worsen results.
Their latest vendor-driven change cost $12.87M a year on average. When their last AI or data project was slowed, paused or cancelled, 34% called vendor-driven costs a major factor and 56% a moderate one.