Software Audit Trends 2023–2024

Software vendors often conduct license compliance audits of their customers to identify unlicensed usage and drive revenue through back-license fees or new sales. In 2023–2024, audit activity remains high – in fact surveys show it has increased significantly – and certain vendors are notorious for aggressive auditing practices. Below we present recent data on audit-related revenue and customer audit rates for major vendors (Oracle, Microsoft, Red Hat, Adobe, IBM, SAP, VMware, etc.), identify those known for aggressive audits, and highlight key audit trends in 2023–2024, with all facts backed by sources.

Software audit activity has been rising in both frequency and financial impact in 2023–2024. Several industry surveys and reports confirm that companies are facing more audits and higher true-up costs:

• Audit frequency is up: A late-2024 survey by Unisphere Research found 62% of respondents were audited by a major software vendor in the past year, a sharp increase from 40% in 2023 (The Rising Cost of Software Compliance: 2025 Survey Highlights Growing Audit Frequency and Financial Impact on Businesses | Business Wire). In other words, the majority of businesses experienced at least one vendor audit in 2024. Large enterprises are especially at risk – for companies with over 5,000 employees, 66% were audited in the past year (up from 50% a year prior) (The Rising Cost of Software Compliance: 2025 Survey Highlights Growing Audit Frequency and Financial Impact on Businesses | Business Wire). Another survey (Flexera 2024) noted that responding to audits has become the single most common activity for IT asset management teams, with nearly 75% of ITAM teams spending time on audits (an 8% jump from the previous year) (FinOps targets SaaS as software audit costs spike | CIO Dive).
  
• Financial stakes are higher: The cost of non-compliance is growing. In the Unisphere survey, nearly 32% of organizations said they incurred over $1 million in audit-related liability in the past year, a figure that more than tripled from just 10% two years ago (The Rising Cost of Software Compliance: 2025 Survey Highlights Growing Audit Frequency and Financial Impact on Businesses | Business Wire). Likewise, Flexera’s data showed the number of companies that paid over $10 million in audit true-up fees in the last 3 years has nearly doubled since 2023, now exceeding 1 in 10 organizations (FinOps targets SaaS as software audit costs spike | CIO Dive). These stats underscore that software audits have become “high-stakes” events – multi-million dollar outcomes are increasingly common.
  
• Vendors pivoting due to economy and cloud: The overall trend is that when traditional sales slow or economic conditions tighten, vendors turn up the heat on audits. For instance, in 2022 amid economic uncertainty, Oracle was observed ramping up audit aggressiveness to “pad its bottom line” (3 customer examples of increased Oracle audit activity in 2022 – The ITAM Review). Similar behavior is expected whenever vendors miss targets (e.g., the LicenseFortress report speculated Oracle’s 2023 stock dip could presage even more audits to recoup revenue). On the other hand, cloud adoption is changing audit dynamics: 53% of companies said moving to the cloud has actually increased compliance complexity (introducing new types of audits for SaaS/PaaS usage) (The Rising Cost of Software Compliance: 2025 Survey Highlights Growing Audit Frequency and Financial Impact on Businesses | Business Wire). Some vendors (like Microsoft, Adobe) have reduced traditional audits as they control usage via cloud services, but the complexity of hybrid licensing can lead to new audit challenges, as companies juggle cloud subscriptions, on-prem licenses, and metrics that span both.
  
• Audit reputations shifting: Notably, Microsoft’s relative audit aggression has eased in favor of incentive-based compliance (as discussed, they’ll cut deals to get you on Azure rather than surprise audit you). Oracle and IBM remain extremely audit-active, with surveys in 2024 showing their audit counts increasing year-over-year(FinOps targets SaaS as software audit costs spike | CIO Dive). Oracle’s push into Java auditing is a new wrinkle that has expanded its audit reach beyond its traditional enterprise customers. Broadcom’s acquisition of VMwareis another 2023 development likely to create a more aggressive audit stance for a vendor (VMware) that was previously moderate.
  
• Preparation and defense: The rise in audits has forced organizations to respond. There’s greater uptake of third-party services for audit defense – in 2024, 52% of companies reported using outside experts to help with audits (up from 34% in 2023) (The Rising Cost of Software Compliance: 2025 Survey Highlights Growing Audit Frequency and Financial Impact on Businesses | Business Wire). The rationale is clear: audits now consume significant time (over half of companies said audits ate 11–20% of their IT staff’s working hours) (The Rising Cost of Software Compliance: 2025 Survey Highlights Growing Audit Frequency and Financial Impact on Businesses | Business Wire). With audits becoming a regular feature of IT operations, companies are building stronger SAM practices, FinOps teams (to monitor cloud spend), and budgeting for potential audit costs. The best practice is proactive license compliance to avoid audits, but given the trend, many CIOs are making audit response a core competency of the IT asset management function.

The 2023–2024 period has seen a notable increase in software vendor audits and the financial impact of non-compliance. Vendors known for aggressive audits (Oracle, IBM, SAP, Micro Focus, etc.) have continued or even stepped up their efforts, while even cloud-era vendors still find ways to enforce compliance (though sometimes via different mechanisms). Companies are more likely than ever to face an audit – over 60% chance in a year (The Rising Cost of Software Compliance: 2025 Survey Highlights Growing Audit Frequency and Financial Impact on Businesses | Business Wire) – and those audits now often yield seven or eight-figure true-up demands (Study: Microsoft Is Most ‘Aggressive’ Software Auditor — Redmond Channel Partner) (FinOps targets SaaS as software audit costs spike | CIO Dive). Being aware of which vendors are most aggressive and staying prepared for compliance reviews is crucial in this environment.

👉 Read more about the Historical Overview in our Wiki article.