{{short description|Unused software, documentation, policies and procedures}} {{use mdy dates|date=November 2020}} {{use American English|date=November 2020}} '''Shelfware'''<ref name=ShelfWare.IW2019>{{cite magazine |magazine=InformationWeek |url=https://www.informationweek.com/strategic-cio/it-strategy/why-you-cant-afford-to-ignore-software-asset-management/a/d-id/1334598 |title=Why You Can't Afford to Ignore Software Asset Management |quote=unused 'shelfware' that cuts into the bottom line |author=Dave Dawson |date=May 7, 2019}}</ref><ref>{{cite magazine |magazine=The Economist |url=https://www.economist.com/special-report/2003/05/10/at-your-service |title=At Your Service |date=May 10, 2003}}</ref> at one time referred to binders of unused documentation<ref>{{cite web |url=https://www.assetivity.com.au/article/asset-management/asset-management-plans-less-is-more.html |title=Less is more |date=May 27, 2016 |quote=documentation that looks good on the shelf but ...}}</ref> 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.<ref>{{cite magazine |magazine=InformationWeek |url=https://www.informationweek.com/software/information-management/dust-off-your--shelfware---/d/d-id/1034917 |title=Dust Off Your 'Shelfware' |author=Bruce Silver |date=August 2, 2005}}</ref> The highest-risk definition of ''shelfware'' is security software, purchased to fill an identified weakness, sitting uninstalled on a shelf.<ref>{{cite magazine |magazine=CIO magazine |url=https://www.cio.com/article/2895876/addressing-your-shelfware-problems-can-help-you-get-good-cyber-security.html |title=Addressing Your Shelfware Problems Can Help You Get Good Cyber Security |quote=weakens cyber security defenses |author=Sue Poremba |date=March 12, 2015}}</ref><ref>One 2017 survey claimed that "Twenty-eight percent of security spending is wasted on shelfware."{{cite web |url=https://www.beyondtrust.com/blog/entry/take-a-long-hard-look-at-your-shelfware |title=Take a long hard look at your shelfware |author=Kate Batley |date=October 20, 2017}}</ref> Another aspect is the opportunity cost for software that will ultimately go totally unused.<ref>{{cite web |url=http://technews.tmcnet.com/channels/softwarelicensingreport/articles/344545-four-ways-reduce-shelfware.htm |title=Four Ways to Reduce Shelfware |author=Mae Kowalke |date=July 3, 2013}}</ref><ref>{{cite news |newspaper=The New York Times |date=April 4, 2001 |url=https://www.nytimes.com/2001/04/29/business/a-software-company-runs-out-of-tricks-the-past-may-haunt-computer-associates.html |quote=called 'shelfware,' or software that is bought but never used. |title=A Software Company Runs Out of Tricks; The Past May Haunt Computer Associates |author=Alex Berenson}}</ref>
==Overview== ''Shelfware'' in the form of money spent on licensing more "seats" than needed<ref name=BilTrill.NW2011>$12 billion/year, USA: {{cite magazine |magazine=NetworkWorld |url=https://www.networkworld.com/article/2202192/how-much-money-are-you-wasting-in-unused-software-licenses-.html |title=How much money are you wasting in unused software licenses? |quote=shelfware |author=Jon Brodkin |date=April 15, 2011}}</ref> "cuts into the bottom line."<ref name=ShelfWare.IW2019/> The term was used in prior decades for what IBM and others also called "Binderware"<ref>{{Cite FTP |url=ftp://ftp.www.ibm.com/software/in/info/rae14005usen.pdf |title=Market Insight Template v4.0.qxd |quote='binderware' that consume costly paper and office supply resources |server=FTP server |url-status=dead |date=July 15, 2007}}</ref> (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<ref name=ShelfWare.IW2019/> 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.<ref>{{cite news |newspaper=Computerworld |url=https://www.computerworld.com/article/2522926/amazon-ec2-s-model-is-a-solution-for-shelfware--says-idc.html |title=Amazon EC2's model is a solution for shelfware, says IDC |author=Eric Lai |date=January 19, 2010}}</ref>
One consulting company considered it a small percentage, compared to "the $3.6 trillion in worldwide IT spending forecasted" for the following year.<ref name=BilTrill.NW2011/> 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.<ref>{{cite news |newspaper=Computerworld |url=http://www2.computerworld.com.au/article/322733/sharepoint_unstoppable_mostly_smoke_mirrors_/?pp=2 |title=Is SharePoint unstoppable, or mostly smoke and mirrors? |author=Eric Lai |date=October 20, 2009}}</ref>
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.<ref>{{cite magazine |magazine=Forbes |url=https://www.forbes.com/sites/forbestechcouncil/2019/12/30/carrot-vs-stick-making-the-case-for-data-driven-software-license-compliance |title=Carrot Vs. Stick: Making The Case For Data-Driven Software License Compliance |quote=preempt difficult conversations at renewal time. |author=Joseph Noonan |date=December 30, 2019}}</ref>
==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.<ref>{{cite magazine |magazine=Network World |url=https://www.infoworld.com/article/2616287/how-can-it-compete-with-saas--ask-your-mechanic.html?page=2 |title=How can IT compete with SaaS? Ask your mechanic |quote=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. |author=Bob Lewis |date=December 19, 2012}}</ref>
Even when not paying double, shelfware raises the effective price-per-copy.<ref>when analyzing cost, total licensing cost compared to non-shelfware (copies in use) raises the effective price-per-copy. {{cite news |newspaper=SD Times (Software Development Times) |url=https://sdtimes.com/backissues/sdtimes324.pdf?submissionGuid |title=Are you paying too much for software? |author=David Rubinstein |date=April 23, 2016}}</ref> Microsoft and others have used CRM techniques "to get it from being 'shelfware' to get people .. to use it."<ref>{{cite news |newspaper=Computerworld |url=https://www.arnnet.com.au/article/117939/microsoft_upgrades_its_crm_applications |title=Microsoft upgrades its CRM applications |author=Marc L. Songini |date=December 18, 2003}}</ref> Unsold copies of software sitting in stores can become ''shelfware''.<ref>{{cite news |url=https://www.IDGinsiderpro.com/article/3444561/4-ways-to-spot-startups-too-focused-on-big-problems.html |title=4 ways to spot startups too focused on Big Problems |quote=aisle after aisle of vaporware, shelfware and science project fever dreams |date=October 14, 2019}}</ref>
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.<ref>{{cite news |newspaper=Computerworld |url=http://www2.computerworld.co.nz/article/338480/ |title=RightNow tries to change SaaS contract, pricing game |author=Chris Kanaracus |date=March 5, 2010}}</ref> 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<ref name="Clothes_1975">{{cite journal |journal=Clothes |page=19 |title=The search for self |volume=10 |issue=14–24 |publisher=PRADS, Inc. |location=New York, NY, USA |date=1975-10-01 |url=https://books.google.com/books?id=B8XxAAAAMAAJ&q=%22One+of+the+messages+dealt+with+is+FUD%E2%80%94the+fear%2C+uncertainty+and+doubt+on+the+part+of+customer+and+sales+person+alike+that+stifles+the+approach+and+greeting.%22 |access-date=2011-06-10 |quote=[…] 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. […]}}</ref> and two computing alternatives to ''FUD''<ref>Fear, uncertainty, and doubt</ref>/Vaporware: Grid Computing and SaaS<ref>Software as a Service</ref><ref>{{cite magazine |magazine=The Economist |url=https://www.economist.com/news/2187222-larry-ellison-ceo-oracle-identifies-three-ideas-whose-time-has-come-changing-game |title=Business: Changing the game |date=November 20, 2003}}</ref><ref>{{cite web |url=https://www.IDGconnect.com/article/3581910/subscription-based-software-many-benefits-but-simpler-license-management-isn-t-one-of-them.html |title=Subscription-Based Software: Many Benefits - But Simpler License Management Isn't One of Them |date=September 16, 2013}}</ref>
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.<ref>{{cite news |newspaper=Computerworld |url=https://www.computerworld.com/article/2531772/layoffs-leave-behind-orphaned-hardware--unused-software-licenses.html |title=Layoffs leave behind orphaned hardware, unused software |date=March 11, 2009}}</ref> Earlier regulatory requirements contributed to both kinds of shelfware.<ref>{{cite web |website=SANS Institute |url=https://www.sans.org/reading-room/whitepapers/policyissues/congratulations-security-manager-493 |title=Congratulations to the New Security Manager |date=September 24, 2001}}</ref>
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.<ref>{{cite news |newspaper=Sun-Sentinel |url=http://www.sun-sentinel.com/news/fl-xpm-1993-02-08-9301080460-story.html |title=Paradox for Windows late, but kudos roll in |author=Peter H. Lewis |date=February 8, 1993}}</ref>
==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''.<ref name=IEEE.shelfware>{{cite book |website=Institute of Electrical and Electronics Engineers (IEEE) |chapter-url=https://ieeexplore.ieee.org/document/7304242 |chapter=Requirements Management Made Easy |author=A. M. Davis |title=Great Software Debates |year=2004|pages=155–161 |doi=10.1002/9781119134657.ch25 |isbn=9781119134657 }}</ref> One columnist wrote that overly complicated diagrams and graphics were "more likely it is to become shelfware."<ref>{{cite web |url=https://technodocbox.com/Web_Design_and_HTML/73173657-Graphical-quality-management-system.html |title=Graphical Quality Management System}}</ref>
Some of these documents were not even for implemented software, but for planning of projects that were "shelved" (not implemented).<ref name=IEEE.shelfware/>
==See also== * Site license * Software documentation * technical documentation
==References== {{reflist|31em}}
Category:Business terms Category:Software licensing