Survey: 1 in 4 Firms Spend $500K+ on Software License Issues

Azul, the only company 100% focused on Java, and the ITAM Forum, a global not-for-profit membership association for IT Asset Management (ITAM) professionals, today published findings from a joint global survey of 500 ITAM and Software Asset Management (SAM) professionals. The data reveals that 27% of enterprises now spend over $500,000 annually to resolve software license non-compliance issues. Oracle Java remains a top concern, with 73% of organizations having undergone an audit within the last three years and nearly eight in ten either having migrated or planning to migrate to open-source Java alternatives to control risk and costs.

Software Licensing Woes Are a Growing Operational Risk

Behind these statistics lies a growing compliance challenge. Hybrid cloud architectures and increasing application sprawl have complicated vendor licensing terms, making it harder for IT teams to maintain visibility and ensure compliance. The survey confirms that many organizations are unable to consistently track software usage, both on-premises and in the cloud—raising audit risk and exposing costly gaps.

Today, the role of ITAM and SAM professionals has evolved from simple asset tracking to a business-critical discipline. These functions are now essential to budget control, risk mitigation, and strategic technology planning.

According to the survey:

• 37% of respondents cite software compliance as the top issue they face.

• 25% report that complex configurations make usage tracking difficult.

• 29% struggle to track software across both cloud and on-premises platforms.

Other key challenges include:

• Difficulty aligning IT, software development, legal, and procurement teams (27%).

• Resource constraints to manage license compliance effectively (24%).

• Rising costs across renewals, maintenance, and license additions (24%).

• Keeping pace with evolving licensing rules and vendor updates (23%).

While 74% of organizations manage software audits internally, they often struggle with accuracy, limited resources, and repeated disruptions. Key pain points include:

• Maintaining accurate software usage records (26%).

• Interpreting complex licensing terms and conditions (23%).

• Providing accurate compliance metrics (23%).

81% of organizations conduct licensing audits at least twice annually, with 25% doing so continuously. A quarter report frequent financial penalties or legal action. Moreover, over 30% say audits result in unanticipated operational or financial consequences—ranging from vendor changes and stalled projects to unexpected budget overruns.

Oracle Java Licensing Sparks Migration to Open-Source

The survey reveals deep concern over Oracle Java licensing. 96% of respondents are worried about Oracle’s pricing and policies, particularly its employee-based pricing model. This model forces companies—especially those trying to avoid licensing costs—to deploy new tracking systems and conduct internal audits to eliminate unlicensed Java instances.

In response, 79% of surveyed organizations say they have migrated, are migrating, or plan to migrate from Oracle Java to open-source alternatives. The top reasons cited include:

• Security and reliability (51%)

• Cost reduction (42%)

• Simplified compliance (40%)

Among those that have already completed migration, 57% cite security and reliability as the top motivator.

The cost advantages of open-source Java are significant:

• 66% expect savings of at least 40% compared to Oracle Java licensing.

• Only 1% expect no cost benefit from the switch.

ITAM and SAM Roles Rise with Software Complexity

The findings come as the global ITAM market has grown from $1.15 billion in 2019 to $1.49 billion in 2023, a CAGR of 6.9%. The SAM market is expected to grow even faster—16% CAGR through 2029—underscoring its growing importance amid increasing software spend (now averaging 29% of IT budgets), virtualisation, and regulatory complexity.

“The results highlight a fundamental mismatch between the complexity of modern software licensing and the resources organizations rely on to manage compliance,” said Martin Thompson, Founder of the ITAM Forum. “ITAM and SAM professionals are becoming increasingly vital. They must have the resources and executive support needed to ensure compliance and reduce financial and operational risk.”

Scott Sellers, Co-founder and CEO at Azul, added: “The data reveals a concerning trend where staying compliant has become a six-figure routine. When 73% of enterprises have been audited and one in four spends more than $500,000 a year on licensing issues, the model is unsustainable. Especially with Oracle’s shifting Java terms, organizations shouldn’t have to burn resources and delay innovation just to stay compliant. Open-source Java helps them break that cycle, reclaim budget, and refocus on value.”