Every year, software vendors tighten their grip on customers, squeezing out revenue through audits. And every year, I see companies scrambling, shocked that they’ve been targeted—even though the numbers keep climbing.
The 2025 Software Audit Survey confirms what I’ve been saying for years: if you’re not actively managing your software licenses and preparing for an audit, you’re playing a game you will lose. Let’s break down what the survey found and, more importantly, what you can do about it.
What the Survey Says (and Why It Matters to You)
Audits Are More Frequent: “62% of respondents have been audited by what they self-describe as a major software vendor within the last year.” Two years ago, it was 40%. If you have over 5,000 employees, your odds of getting audited jump to 66%.
Audits Are More Expensive: “Approximately 32% of the companies measured had to pay over $1 million.” That’s not even counting the lost time, stress, and disruption that come with an audit.
Cloud Is Making Things Worse: “53% of respondents report that the introduction of clouds has added significant complexity to managing software.” If you think your cloud migration means fewer compliance headaches, think again.
You’re Not Ready for an Audit: This one stands out. Despite the increasing frequency of audits, the survey found that ‘customers are still shocked when confronted.’ Just as a tax audit wouldn’t come as a surprise if financial records were well-maintained, software audits follow the same principle—being prepared is key.
Audits Take Too Long and Cost Too Much Time: “More than one-third of respondents report that their software audit took 3-6 months to resolve.” And during that time, “many personnel assigned to complete tasks required by audits have to devote a significant percentage of their time”—often between 11% and 20% of their working hours. Imagine losing a fifth of your workforce to an audit.
Now that we know the situation, let’s talk about what you can do to protect yourself.
How to Keep Your ITAM Program (and Sanity) Intact
1. Stop Ignoring Audit Readiness
I can’t stress this enough: audits aren’t if but when. You need a game plan before an auditor comes knocking.
Test and improve your ITAM data regularly in order to make it more complete and trustworthy
Document and model your internal processes around an asset lifecycle so you know when changes occur and how they impact your audit risks
Locate and organize your contracts to know what datapoints you need to be tracking and when to expect the next audit to occur
Because as the survey says, “customers are still shocked when confronted”—and there’s no excuse for that.
2. Get a Handle on Your Cloud Licenses
Your cloud provider isn’t going to save you from a software audit. You have to work to save yourself. Keep an inventory of everything in the cloud.
Understand how cloud licensing differs from on-prem.
Review vendor agreements before you move workloads.
Craft policies and procedures to make the most of reusing software licenses you’ve already purchased before buying new.
“96% of respondents have critical databases and applications in the cloud today.” Without active tracking of cloud licenses, organizations may be exposing themselves to unnecessary risks.
3. Budget for Software Costs Like You Would for Rent
Software is a significant investment, yet it’s often not given the same financial foresight as other major expenses.The survey makes it clear:
“Software expense increases are, at a minimum, equivalent to the rate of published inflation.”
“Approximately 32% of companies measured had to pay over $1 million” after an audit.
If you’re not proactively managing software costs, you’re leaving yourself vulnerable to a financial disaster. Those millions of dollars lost to audits are preventable losses. Consider these losses against the cost of properly equipping and training an ITAM program. As the old saying goes, a little prevention can save a lot of pain.
4. Protect Your Team’s Time (and Sanity)
Audits drain your team’s resources fast. “52% of respondents report that they assigned between three and ten individuals to the audit, and another 31% allocated more than ten.” That’s a huge operational burden.
Here’s what to do:
Assign one person to lead one publisher’s audit responses. Don’t let it become a free-for-all. But that doesn’t mean only one person needs to be responsible for the entire corporation.
Use automation tools to reduce manual tracking. But to do it right, you need to make sure your data is in order. (See point #1, above)
Push back on excessive vendor demands. (You don’t have to say yes to everything they ask for.) And to successfully push back, you need to know what rights you’re afforded in your license agreement terms and conditions. Again, back to point #1, above.
The last thing you want is your C-Suite getting dragged into the mess—yet the survey found that “nearly 25% of the audits involve the direct participation of C-Suite executives.” That’s a waste of your most valuable people’s time.
5. Start Continuous Monitoring (or Pay for It Later)
You know who had the easiest time with audits? The companies that monitored their software usage regularly.
“73% of organizations that monitor on a continuous, daily, or even weekly basis resolved their software vendor audits within two months.”
Compare that to companies that only check in monthly or less—they take way longer to get out of an audit.
Regular monitoring isn’t just about avoiding audits. It helps you control costs, optimize licenses, and stay ahead of the game.
6. Get Help (Because Everyone Else Is)
I get it — nobody wants to pay for outside help. But here’s the thing: it works.
The survey found that “over 95% report that using such a service or tool was at least somewhat helpful.” And yet, plenty of companies still try to go it alone and end up paying way more than they need to.
You don’t do your own surgery. You don’t represent yourself in court. So why are you handling audits without an expert?
If you want to:
1. Avoid overpaying in an audit
2. Reduce the time your team spends on compliance
3. Actually win against aggressive vendors
… then bringing in outside expertise like me is the smartest move you can make.
Final Thoughts
The numbers don’t lie—software audits are getting worse, and most companies are still getting blindsided. But with the right approach, you don’t have to be one of them.
Be proactive. Get your contracts in order. Track your cloud usage. Monitor continuously. And if an audit does come your way? Call in the right help before you end up on the wrong side of a million-dollar bill.
Because trust me—your vendors are counting on you to be unprepared.
About Me
I help companies stop losing money to software vendors. Whether it’s licensing strategy, audit defense, or ITAM best practices, I make sure you stay compliant without overpaying. If you’re tired of feeling like vendors have all the power, let’s talk.
FAQ
Q: What’s the biggest mistake companies make when it comes to audits?
A: Thinking “this won’t happen to us.” It will. And when it does, it’ll be expensive.
Q: Should I fight an audit myself or bring in a consultant?
A: Look at the numbers: “over 95% report that using such a service or tool was at least somewhat helpful.” Going in alone is usually a losing battle.
Q: How often should I review my licenses?
A: The companies that did it daily or weekly resolved audits in under two months. The ones that didn’t? Not so much.
Q: What’s the first step to getting ahead of an audit?
A: Start by documenting everything. Know what you own, what you’re using, and where the gaps are. Once the auditor finds it, you are stuck. As I say in my book, The Pragmatic ITAM Method, “She with the best documentation, wins”.
