Underutilized software

The tools draining your software budget

Underutilization continues to erode software budgets, often driven by duplicate applications or overprovisioned licenses.

As of December 2025, Vertical Industry tools once again topped the list of least-utilized software, reclaiming the lead after falling off the rankings in Q3. This may be due to project-based usage, shifting industry priorities or overlapping niche tools within the tech stack

Other categories with high underutilization include Office Management, Project Management and Content Management. Notably, Security tools appear in the top five for the first time in over a year, highlighting potential gaps between provisioned licenses and actual SaaS license usage.

Underutilized tools are defined as those with less than 50% utilization, underscoring a persistent challenge for procurement teams: paying for licenses that aren’t effectively used, resulting in unnecessary spend and lower returns on software investments.