The Hidden Costs of Unused Engineering Software Licenses

For many mechanical engineering and product development teams, high-value tools like CAD, CAE, and EDA software are essential. Yet, despite the hefty investment, a significant portion of the licenses purchased for those tools often sit idle. 

While license expenses are clearly visible on the budget line, the hidden cost of unused software licenses silently eats away at resources. 

Let’s uncover why this happens, how it impacts engineering teams specifically, and what you can do to regain control. 

The high price of shelfware  

Unused licenses, often called “shelfware”, accumulate for several reasons: 

• Projects end earlier than expected. 
• Engineers shift roles or leave the company. 
• Extra licenses are purchased “just in case.” 

Whatever the reason, the result is the same: valuable engineering budgets locked into software that no one is using. 

The true cost of engineering software licenses 

Engineering licenses are expensive, but underutilization costs even more. In the fast-paced world of engineering, tools like CAD (Computer-Aided Design), CAE (Computer-Aided Engineering), CFD (Computational Fluid Dynamics), and EDA (Electronic Design Automation) software are the backbone of modern mechanical design, simulation, advanced manufacturing, and sophisticated product development. Surprisingly, these licenses aren’t cheap, often costing thousands of dollars per user annually. 

55% of large enterprise software licenses go unused. 

According to Zylo’s 2024 Enterprise SaaS Management Report, a stunning 55% of large enterprise software licenses go unused, resulting in an average of $127.3 million in wasted spend each year.  

A 14% increase in software spending was predicted for 2025. 

Besides, Gartner forecasted a 14% increase in software spending for 2025, with engineering-centric sectors leading the charge. 

That’s no small amount when considering what an engineering team could do with that kind of budget redirected to R&D or new projects. 

And it’s not just about the money—overlooking license usage incurs several hidden costs.  

What are the hidden costs of unused software licenses? 

Unused or poorly tracked software licenses bring more problems than just wasted spending. Let’s break down what’s really at risk: 

1. Operational inefficiency 

If your team can’t access the right tools when they need them because licenses are locked in the wrong place or assigned to inactive users, productivity drops. Delays become inevitable, and what should’ve taken days might stretch into weeks. 

2. Poor license compliance 

Without robust license monitoring, you’re flying blind. Organizations risk falling out of license compliance, and that can mean surprise audits, legal headaches, and fines. All the more reason to know what’s being used, by whom, and when. 

3. Overbuying “just in case” 

In most cases, without having access to complete license inventory visibility, organizations purchase extra licenses “just in case” someone new joins or usage spikes. But without real software tracking, that buffer often turns into bloat. 

4. Inaccurate forecasting 

If you don’t have a clear picture of actual usage, how can you budget accurately for the next fiscal year? Overestimating demand leads to over-purchasing. In which case, underestimating can leave teams stranded. 

5. Lost opportunities for cost optimization 

Every unused CAD, CAE, EDA, or other engineering software license represents money that could’ve been spent elsewhere—hiring talent, improving infrastructure, or investing in innovation. Without proper license management, you’re not just wasting money; you’re missing out on better ways to use it. 

Why is this especially true for engineering teams? 

Engineering software is expensive and often specialized. Licensing models are complex —node-locked, floating, network-based —and vary between vendors. That makes license management tricky without the right tools. A single CAD license left unused for a year could mean tens of thousands in lost ROI. 

What’s more, these licenses often get spread across departments, regions, or even continents. Without centralized visibility, tracking them becomes a guessing game. 

What’s the solution?  

The solution to the most common unused software license waste is smarter software license management. The right license management solution helps you: 

• Track real-time usage of CAD, CAE, CFD, and EDA tools. 
• Identify unused licenses and reassign them. 
• Predict future needs based on historical usage. 
• Monitor license denials and peak usage. 
• Ensure compliance with vendor agreements. 
• An answer to license chaos.

For organizations investing heavily in tools like Autodesk AutoCAD, Dassault CATIA and SolidWorks, Siemens NX, Ansys Fluent and FEA, Altair HyperWorks, or PTC Creo and MathCAD, the stakes are unquestionably high. Each license can cost thousands of dollars per seat, and without monitoring, a significant portion of that spend often sits idle. LAMUM (License Asset Manager with Usage Monitoring) helps ensure that every license is working for you, not against your budget.      

LAMUM by TeamEDA is purpose-built for engineering-driven companies. It gives IT leaders clear visibility into what they own, what they use, and what they really need. 

Here’s how LAMUM helps solve the license waste problem: 

• Real-time license tracking—know exactly who’s using what and when. 
• Usage reports & trends—spot underused licenses and optimize allocations. 
• Vendor data integration—centralize contracts, renewals, and contact info. 
• Audit-ready compliance tools—reduce risk and stay ahead of the curve. 
• Informed forecasting—make smarter renewal and purchasing decisions. 

 

About TeamEDA 

TeamEDA helps engineers work more effectively and efficiently. We have been serving engineering-driven companies for more than two decades, delivering software solutions that help organizations gain better visibility, control, and value from their engineering assets. Our expertise lies in license management, usage monitoring, and optimization tools that support CAD, CAE, EDA, and other engineering software essential to modern product development. 

With a customer-first approach, we partner with mechanical engineering teams, manufacturers, and technology-driven enterprises to reduce waste, improve compliance, and optimize IT investments. By combining technical depth with practical insight, TeamEDA ensures that every solution we provide empowers our customers to achieve higher productivity and sustainable growth. 

At TeamEDA, our mission is simple: To help engineering organizations make smarter decisions, eliminate hidden costs, and maximize the impact of technology investments. 

Take action today 

Unused engineering software licenses are a major cost hiding in plain sight. But with proper software license management, those hidden costs can be turned into savings, efficiency, and peace of mind. It’s time to take control. Tools like LAMUM make it easier than ever to turn hidden costs into opportunities. 

Gain control. Reduce waste. Optimize with LAMUM today. Learn more about LAMUM.