Underutilized software

The tools draining your software budget in 2026

Underutilization continues to erode software budgets, often driven by duplicate applications, overprovisioned licenses or shifting project requirements that leave specialized tools idle.

As of March 2026, Professional Services tools have topped the list of the least-utilized software. This shift suggests that organizations may be over-investing in specialized project management or consulting-adjacent platforms that aren't seeing daily engagement across the broader workforce. Hosting and Business Services follow closely in the second and third positions, highlighting potential over-provisioning in infrastructure and administrative support layers.

Vertical Industry tools, which previously led the rankings in 2025, have dropped to the fourth spot. While still a major source of waste, this decline may indicate that companies are becoming more disciplined in rightsizing niche, industry-specific applications. Office Management rounds out the top five, reflecting the ongoing challenge of managing tools that support hybrid or changing physical workspace needs.

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.

2026 SaaS Efficiency and Category Waste Trends

The transition of Professional Services and Hosting to the top of the waste list suggests that as companies focus on "scaling up," they are often leaving their foundational support and infrastructure tools behind. Utilizing an intelligent procurement platform like Vertice provides the granular visibility needed to identify these specific pockets of waste and automatically rightsize contracts before the next renewal cycle.

‍Data source: These insights are derived from over $30bn of global processed spend managed by Vertice in 2026.