Shelfware

Shelfware[1][2] at one time referred to binders of unused documentation[3] and at present refers to unused software. It also refers to security and other policies and procedures that fill an "array of binders" collecting dust.[4] The highest-risk definition of shelfware is security software, purchased to fill an identified weakness, sitting uninstalled on a shelf.[5][6] Another aspect is the opportunity cost for software that will ultimately go totally unused.[7][8]

Overview

Shelfware in the form of money spent on licensing more "seats" than needed[9] "cuts into the bottom line."[1] The term was used in prior decades for what IBM and others also called "Binderware"[10] (referring paper-based documentation). With more software being licensed per unit of time, rather than purchased or on perpetual license, a delayed project for which specialized software was procured[1] results in extra cost overruns. An alternative to pre-payment for what becomes unused software is via a pay-per-use/software-as-a-service arrangement.[11]

One consulting company considered it a small percentage, compared to "the $3.6 trillion in worldwide IT spending forecasted" for the following year.[9] Not all unused software, however, should be considered shelfware - in particular that which could be considered unintentional. An example is the case of Microsoft's SharePoint, since bundled with it was a Client Access License (CAL). Computerworld cited an industry analyst as saying that "a lot of customers didn't know" and hence regarding CAL "never deploy the software." A subsequent survey, also cited in the article, said that less than 70% actually made full use of that for which their company paid: Shelfware by accident.[12]

A 2016 survey as to whether software companies should give feedback when they become aware of shelfware overspending found the majority finding this feedback not to be "a risk to recurring revenue" in the long run.[13]

Double spending

When an IT department buys a bundle of software that includes a specific functionality, and a user department is unwilling to wait for this software, and buys the same functionality elsewhere, the IT purchase will go unused: shelfware.[14]

Even when not paying double, shelfware raises the effective price-per-copy.[15] Microsoft and others have used CRM techniques "to get it from being 'shelfware' to get people .. to use it."[16] Unsold copies of software sitting in stores can become shelfware.[17]

When several projects, each lasting several months, have different start and end months, licensing by transferable "seat months" is a way of reducing paying for unused software.[18] A related idea is the software subscription model, which Oracle Corporation CEO Larry Ellison tied to two other marketing concepts: fashions in women's clothing[19] and two computing alternatives to FUD[20]/Vaporware: Grid Computing and SaaS[21][22][23]

Following major layoffs during the 2008 drop in the economy, some companies found themselves keeping this double-spending effect: both IT and the department did not have the institutional memory that would justify canceling renewals.[24] Earlier regulatory requirements contributed to both kinds of shelfware.[25]

Software purchases, when bought for doing evaluations, even when expensive, are shelfware following evaluation, but keeping them may be easier than getting them off the company's property records.[26]

Binderware

The term shelfware originated before the internet, and it referred to reams of paper documentation. When the number of pages became beyond what could be stapled, they were stored in loose-leaf binders: binderware.[27] One columnist wrote that overly complicated diagrams and graphics were "more likely it is to become shelfware."[28]

Some of these documents were not even for implemented software, but for planning of projects that were "shelved" (not implemented).[27]

See also

References
  1. Dave Dawson (May 7, 2019). "Why You Can't Afford to Ignore Software Asset Management". InformationWeek. unused 'shelfware' that cuts into the bottom line
  2. "At Your Service". The Economist. May 10, 2003.
  3. "Less is more". May 27, 2016. documentation that looks good on the shelf but ...
  4. Bruce Silver (August 2, 2005). "Dust Off Your 'Shelfware'". InformationWeek.
  5. Sue Poremba (March 12, 2015). "Addressing Your Shelfware Problems Can Help You Get Good Cyber Security". CIO magazine. weakens cyber security defenses
  6. One 2017 survey claimed that "Twenty-eight percent of security spending is wasted on shelfware."Kate Batley (October 20, 2017). "Take a long hard look at your shelfware".
  7. Mae Kowalke (July 3, 2013). "Four Ways to Reduce Shelfware".
  8. Alex Berenson (April 4, 2001). "A Software Company Runs Out of Tricks; The Past May Haunt Computer Associates". The New York Times. called 'shelfware,' or software that is bought but never used.
  9. $12 billion/year, USA: Jon Brodkin (April 15, 2011). "How much money are you wasting in unused software licenses?". NetworkWorld. shelfware
  10. "Market Insight Template v4.0.qxd" (PDF). July 15, 2007. 'binderware' that consume costly paper and office supply resources
  11. Eric Lai (January 19, 2010). "Amazon EC2's model is a solution for shelfware, says IDC". Computerworld.
  12. Eric Lai (October 20, 2009). "Is SharePoint unstoppable, or mostly smoke and mirrors?". Computerworld.
  13. Joseph Noonan (December 30, 2019). "Carrot Vs. Stick: Making The Case For Data-Driven Software License Compliance". Forbes. preempt difficult conversations at renewal time.
  14. Bob Lewis (December 19, 2012). "How can IT compete with SaaS? Ask your mechanic". Network World. business departments sign contracts with SaaS vendors ... it often turns out that the functionality a business department needs is already available as unused features, possibly in an unused module, of an application the company already licenses.
  15. when analyzing cost, total licensing cost compared to non-shelfware (copies in use) raises the effective price-per-copy. David Rubinstein (April 23, 2016). "Are you paying too much for software?" (PDF). SD Times (Software Development Times).
  16. Marc L. Songini (December 18, 2003). "Microsoft upgrades its CRM applications". Computerworld.
  17. "4 ways to spot startups too focused on Big Problems". October 14, 2019. aisle after aisle of vaporware, shelfware and science project fever dreams
  18. Chris Kanaracus (March 5, 2010). "RightNow tries to change SaaS contract, pricing game". Computerworld.
  19. "The search for self". Clothes. New York, NY, USA: PRADS, Inc. 10 (14–24): 19. October 1, 1975. Retrieved June 10, 2011. […] One of the messages dealt with is FUD—the fear, uncertainty and doubt on the part of customer and sales person alike that stifles the approach and greeting. […]
  20. Fear, uncertainty, and doubt
  21. Software as a Service
  22. "Business: Changing the game". The Economist. November 20, 2003.
  23. "Subscription-Based Software: Many Benefits - But Simpler License Management Isn't One of Them". September 16, 2013.
  24. "Layoffs leave behind orphaned hardware, unused software". Computerworld. March 11, 2009.
  25. "Congratulations to the New Security Manager". SANS Institute. September 24, 2001.
  26. Peter H. Lewis (February 8, 1993). "Paradox for Windows late, but kudos roll in". Sun-Sentinel.
  27. A. M. Davis (2004). "Requirements Management Made Easy". Great Software Debates. pp. 155–161. doi:10.1002/9781119134657.ch25. ISBN 9781119134657. {{cite book}}: |website= ignored (help)
  28. "Graphical Quality Management System".
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