The Rising Cost of Software Compliance: 2025 Survey Highlights Growing Audit Frequency and Financial Impact on Businesses

A recent study conducted by Unisphere Research, and sponsored by LicenseFortress, reveals that software audits are becoming increasingly frequent and financially burdensome. The 2025 Survey on Enterprise Software Licensing and Audit Trends sheds light on escalating costs, operational disruptions, and the growing complexity of compliance management.

The 2025 Survey on Enterprise Software Licensing and Audit Trends offers a detailed examination of how these pressures are reshaping priorities across IT and executive leadership. Companies are allocating more resources than ever before to mitigate risks, manage audits, and avoid potentially catastrophic financial consequences.

Key Findings: A Stark Comparison

• 62% of respondents reported being audited by a major software vendor within the past year, a significant increase from 40% in 2023. For companies with over 5,000 employees, the audit frequency climbed to 66%, up from 50% in 2023.
• Nearly 32% of organizations incurred financial liabilities exceeding $1 million from audits, more than tripling the 10% reported two years ago.
• 53% of respondents indicated that cloud adoption has increased compliance complexity, up from 38% in 2023. This shift highlights the growing challenges of managing hybrid and cloud-native environments.

“Software audits have evolved into a high-stakes challenge for organizations, and the data clearly shows this trend is accelerating,” said Dean Bolton, Chief Architect & Co-Founder, LicenseFortress. “What was once a periodic inconvenience is now a frequent and costly risk that demands immediate attention.”

Resource Allocation and Human Costs

Software audits require not only financial resources but also substantial time and manpower, disrupting normal business operations. Organizations are increasingly diverting their workforce, from technical staff to top executives, to handle audit demands. The survey reveals just how significant the resource drain has become:

• 52% of respondents assigned 3-10 team members to audit tasks, while 31% involved more than 10 individuals. These figures have grown compared to 2023, reflecting the expanding scope of audit requirements.
• For 56% of respondents, audits required 11-20% of their working hours, with 11% dedicating over 25%—a significant increase in resource consumption since the last survey.
• Additionally, nearly 25% of audits involved C-suite executives, a notable rise compared to previous years, illustrating the disruptive impact audits have on leadership and operational priorities.

The Growing Role of Third-Party Services

Organizations are increasingly turning to third-party audit defense services to alleviate the burden of compliance. These external experts not only reduce the financial impact of audits but also help streamline the overall process. The survey shows a marked shift in attitudes toward leveraging specialized expertise:

• 95% of respondents found these services helpful in reducing their audit liabilities.
• The percentage of organizations utilizing third-party assistance rose to 52% in 2025, up from 34% in 2023, indicating a growing awareness of the value of expert support.

“The survey highlights how quickly the landscape is evolving,” said Dr. Michael Corey, COO & Co-Founder of LicenseFortress. “When we first surveyed companies two years ago, most were managing compliance entirely in-house. Now, there’s a clear shift toward adopting specialized expertise, driven by the growing realization of how complex software licensing has become.”

Predictions: The future is SAM Managed Services

The findings highlight a complex and demanding environment for organizations, even as they increasingly turn to industry expertise. Many continue to face steep compliance fees and substantial resource strain during audits, with C-suite involvement reported quarter of cases. This brings forward a critical concern: Do organizations fully grasp the indirect costs associated with audits? Addressing these challenges requires a shift toward smarter, more proactive software licensing strategies.

Using a SAM Managed Service with continuous monitoring, organizations can proactively mitigate risks, alleviate the burden on internal teams, ensure compliance, and uncover cost-saving opportunities. Real-time insights enable companies to address potential issues before they escalate, maintain better control over licensing, and optimize resource allocation for long-term efficiency.

About the Survey

The 2025 Survey on Enterprise Software Licensing and Audit Trends was conducted by Unisphere Research, a division of Information Today, Inc., and sponsored by LicenseFortress, a leader in software asset management and compliance solutions. Based on responses from over 300 database administrators, IT leaders, and executives, the study provides a comprehensive view of the current state of software compliance and audit challenges.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250122806719/en/