The engineering software landscape is undergoing a transformation as organizations navigate a rapidly evolving environment marked by escalating costs, shifting licensing models, and the growing prevalence of cloud-based applications. Open iT empowers organizations with big engineering software portfolios to address these challenges. Here, we explore the major engineering license management trends and challenges shaping 2025 and how organizations can adapt effectively.
Software Spending on the Rise
Gartner predicts a rise in software spending for 2025, with industries like engineering, energy, automotive, aerospace, and defense ramping up investments to enhance operational efficiency and secure a competitive edge. This trend is driven by increased adoption of advanced tools such as computer-aided design (CAD), building information modeling (BIM), and engineering simulations, as organizations prioritize cutting-edge solutions to stay ahead.
While these tools drive innovation and better project outcomes, poor engineering license management can lead to suboptimal use of these assets, compounded inefficiencies, and limited ROI. By leveraging Open iT’s solutions, businesses can gain granular visibility into their license usage patterns, identify cost-saving opportunities, and ensure their investments in engineering software deliver maximum value.
Software Waste Remains a Challenge
With increased software spending comes software waste. This has been a persistent issue for engineering organizations. Unused or underutilized licenses—often stemming from poor tracking or redundant purchases—are a common culprit. Research indicates that up to 30% of software licenses go unused across companies and sectors.
The root causes of software waste include:
- Inadequate license tracking systems
- Poor alignment between procurement and user needs
- Lack of usage analytics
To combat these inefficiencies, Open iT offers advanced engineering license management tools for monitoring license utilization. Our solutions help organizations eliminate waste by identifying inactive licenses, reallocating resources effectively, and negotiating contracts based on actual usage data.
Usage-Based Licensing Models Gain Popularity
Usage-based subscription models are becoming increasingly prevalent in engineering software, providing organizations with more flexibility and scalability. This shift aligns costs more closely with actual usage, offering significant savings for companies that prioritize efficient license management.
However, without an effective engineering license management strategy, companies may still find themselves overspending. Usage-based models require meticulous tracking to ensure that usage patterns align with licensing agreements. Open iT’s real-time analytics tools empower organizations to:
- Monitor usage trends
- Detect anomalies or spikes in consumption
- Optimize subscriptions to align with project demands
By embracing usage-based licensing with the right tools, companies can reduce waste while ensuring their software environments remain agile and cost-effective.
Cloud-Based and SaaS Applications Lead the Way
The engineering sector is witnessing a significant shift toward cloud-based and SaaS solutions, Japan’s construction industry as a prime example. Applications for CAD, BIM, and simulations are increasingly hosted in the cloud, offering greater accessibility, collaboration, and scalability. While the benefits are undeniable, this transition also introduces new challenges:
- Complex licensing agreements
- Difficulties in tracking usage across distributed teams
- Increased risk of overspending due to auto-renewals and insufficient monitoring
Open iT has expanded its support to more cloud-based license managers. Our advanced reporting tools help organizations manage cloud and SaaS licenses effectively, ensuring compliance and preventing cost overruns.
Heightened Government Focus on Software Spending
Public-sector entities are becoming increasingly vigilant about software expenditures, driven by budget constraints and accountability requirements. Initiatives such as the SAMOSA Act indicate the U.S. government prioritizing the optimization of software usage to maximize value and align with fiscal policies.
Open iT has collaborated extensively with government organizations to enhance software asset management practices. By leveraging advanced usage analytics, these entities can:
- Align spending with operational requirements
- Eliminate unnecessary expenditures
- Support sustainability initiatives through efficient resource allocation
As government awareness grows, SLM providers like Open iT will play a critical role in driving transparency and efficiency.
Increasing Emphasis on License Usage Analytics
License usage analytics are becoming essential for effective software license management. By providing detailed, actionable insights, these analytics enable organizations to optimize licensing, enhance procurement decisions, and achieve significant cost savings.
However, only 38% of organizations are confident in their ability to collect accurate product usage data, leaving 62% needing to improve their data-gathering processes.
Open iT’s analytics platform offers:
- Granular visibility into usage patterns across diverse engineering applications
- Customizable reporting for stakeholders
- Predictive modeling to anticipate future licensing needs
These capabilities empower organizations to adopt a proactive approach to license management, ensuring that software investments are aligned with operational objectives and long-term goals.
Navigate the Engineering License Landscape Smartly
The engineering software market is evolving rapidly, driven by technological advancements, rising costs, and changing consumption models. Organizations that embrace data-driven decision-making and implement robust engineering license management practices will be well-equipped to thrive in this dynamic environment.
Open iT empowers organizations with the insights and tools needed to optimize software investments. By providing solutions tailored to the complexities of engineering-focused industries, we help our clients unlock value, reduce costs, and drive innovation.
Ready to future-proof your organization?
Contact Open iT now and explore how Open we can help you navigate these trends and challenges and optimize your engineering software investments for the long term.