Device sprawl drives unnecessary spend in more ways than one.
If you can’t confidently answer how many active and inactive devices are in your environment, where they are, and who is responsible for them, you may be overspending and carrying more risk than you realize. That’s the uncomfortable reality many IT leaders are facing in 2026.
Once upon a time, device sprawl could be blamed on growth. "But today, device sprawl is often the result of hybrid work and the logistical challenges required to support distributed workforces across Canada." Industry research shows that only 43% of IT teams report having complete visibility across their technology environment. When we see that more than half of organizations lack full clarity into their device estate, it’s clear that many aren’t managing costs, optimizing usage, or enforcing consistent security controls.
The impact of device sprawl doesn’t feel dramatic at first, but it is persistent. Finance questions why technology costs keep climbing. Procurement renews contracts without clear usage data. IT operations scramble when software audits arise. Security teams worry about endpoints that may no longer be actively managed. Support teams deal with aging or misconfigured devices that should have been retired months (or even years) ago. These aren’t separate issues. Instead, they’re signals that devices are multiplying faster than lifecycle controls can keep up with.
In distributed environments, devices are shipped directly to employees, recovered inconsistently, and sometimes never properly decommissioned. Over time, the environment becomes harder to track, harder to secure, and harder to justify financially.
Device sprawl drives unnecessary spend in more ways than one. Industry studies have found that up to 55% of enterprise software licenses remain unused, often tied to devices that are no longer properly tracked. At the same time, 58% of IT leaders say wasteful IT spending is a major issue, driven by technology sprawl, redundant purchases, and limited governance.
When devices are not accurately tracked through deployment, support, and retirement, organizations overspend on replacements, hold excess inventory, and continue paying for software tied to inactive assets.
Research also shows that organizations without centralized or automated asset tracking can overspend on IT by 12-20% annually due to duplicate purchases and underutilized resources.
In a cost-constrained environment, that level of leakage no longer feels acceptable or justified.
Unfortunately, hidden cost is only half the story. Unmanaged or unknown endpoints represent the real exposure. Research indicates that 69% of organizations have experienced cyber incidents linked to unknown or unmanaged IT assets. Devices that are not consistently tracked, patched, or properly retired create openings that security programs cannot fully mitigate. As threat activity continues to rise, every device that cannot be confidently accounted for becomes a potential risk vector.
The issue is rarely malicious intent, but rather the result of busy IT teams and fragmented lifecycle ownership. Deployment, retrieval, wiping, storage, and retirement are often handled by different teams or vendors with limited coordination. Without a connected lifecycle, visibility breaks down and the risk these devices represent compounds over time and quantity.
Left unmanaged, device and software sprawl won’t correct themselves. As they build, they slowly erode financial predictability, increase audit exposure, and undermine security posture. But they are solvable. The most effective organizations treat device management as a connected lifecycle, not a series of disconnected transactions. They maintain a reliable, ongoing view of where devices are, how they are being used, and how they move through onboarding, support, and retirement. The same process applies to software licensing.
When lifecycle visibility improves, costs become predictable. Audit preparation becomes simpler. Security posture strengthens. IT shifts from reactive clean-up to proactive control.
At Compugen, we work with organizations that are feeling this exact pressure. The starting point is not a rip-and-replace initiative. It starts with gaining a clear understanding of your current device and software estate, and thus the scope of the challenge in front of you.
The impact of centralized, lifecycle-driven device management is measurable. Hewlett-Packard's (HP) global device initiatives, powered by its Workforce Experience Platform (WXP), has yielded impressive results. By closely managing 81,000 IT assets worldwide, the organization achieved $3.8 million in savings and a 40% reduction in device refresh costs. These outcomes demonstrate what becomes possible when device visibility and lifecycle governance are aligned at enterprise scale.
An IT Asset Management assessment provides insight into fleet visibility, lifecycle gaps, cost drivers, and security exposure. It creates a practical baseline so IT leaders can prioritize action and measure improvement.
If device or software licensing sprawl are driving cost, audit anxiety, or security concerns in your environment, the most important step you can take is regaining visibility and control.
Start your free IT Asset Management Assessment and gain a clear, defensible view of your device environment, so you can reduce waste, lower risk, and restore confidence in your IT operations.