Most businesses utilise a combination of applications for:
- Email and communication
- Word processing and spreadsheets
- Customer relationship management (CRM)
- Accounting and payroll
- Cyber security
- Collaboration and video meetings
- Artificial intelligence tools
While individual software products may compete with one another, moving from one provider to another is rarely simple.
Data migration can be complex. Staff require training. Existing workflows may need redesigning. Meanwhile, applications already integrated within a single software ecosystem often work together more seamlessly than products supplied by competitors.
As a result, organisations may continue paying for familiar software not because it is the best solution, but because changing feels too disruptive.
According to the CMA, these barriers can reduce customer choice and weaken competitive pressure within the market.
The Hidden Cost of Software Lock-In
Software subscriptions frequently appear affordable when viewed individually. However, costs can escalate significantly as businesses add licences, premium features, storage and AI capabilities.
Equally important, businesses may become heavily dependent on a single supplier when key functions such as communication, document storage, security and customer data all sit within one ecosystem.
This creates several potential risks:
- Reduced negotiating power at renewal
- Higher future subscription costs
- Limited flexibility when adopting new technology
- Dependence on a single provider’s roadmap and pricing decisions
- Greater complexity if a migration becomes necessary later
Partner Insight
“Convenience should never replace strategic review. Regular assessment helps ensure software continues to support business objectives rather than dictate them.”
Conducting a Business Software Review
Regardless of the CMA investigation’s outcome, businesses do not need to wait for regulatory changes before assessing their software arrangements.
A practical review should include:
1. Identify All Software Subscriptions
Many organisations are surprised by the number of active subscriptions they maintain.
Create a complete list covering:
- Productivity suites
- CRM systems
- Accounting software
- HR platforms
- Payroll services
- Cyber security tools
- AI subscriptions
2. Assess Actual Usage
Review which applications are actively used.
Questions to consider include:
- Are licences fully utilised?
- Are duplicate services being purchased?
- Are employees using available functionality?
3. Review Integration Requirements
Many businesses benefit from connected systems.
Before considering alternatives, assess:
- Data-sharing requirements
- Workflow dependencies
- Reporting integrations
- Security implications
4. Calculate Total Cost of Ownership
Subscription fees represent only part of the overall cost.
Also consider:
- Implementation costs
- Training requirements
- Technical support
- Productivity impacts
- Security and compliance obligations
What Might Happen Next?
The CMA consultation remains ongoing, and any eventual interventions would follow further investigation and evidence gathering. Areas identified for potential future examination include software bundling, AI products, cloud licensing arrangements and interoperability between services
If changes are introduced in future, businesses may benefit from:
- Easier switching between providers
- Greater interoperability
- Improved access to competing software products
- Increased innovation and competition
- More flexibility around AI and cloud services
However, even if regulators encourage greater competition, organisations will still need to make careful commercial decisions based on their own operational requirements.
What Should You Do Now?
✅ Create a complete inventory of software subscriptions
✅ Identify who uses each system and how often
✅ Review licence utilisation and redundant services
✅ Assess dependency on any single provider
✅ Evaluate integration and migration risks
✅ Calculate the true total cost of ownership
✅ Discuss software strategy as part of wider business planning
Key Takeaways
- The CMA is investigating competition within the UK business software market.
- The proposed Microsoft designation remains under consultation and introduces no immediate obligations.
- Switching software providers can be costly due to migration, training and integration requirements.
- Regular software reviews help businesses improve value, reduce waste and manage risk.
- Strategic technology decisions should consider long-term operational impact rather than subscription costs alone.
How We Can Help
At The MGroup, we help businesses assess operational efficiency, manage costs and make informed strategic decisions. Whether reviewing technology investments, improving financial performance or planning future growth, our team provides practical, commercially focused advice.
If you would like support reviewing your software expenditure or wider business processes, we’re here to help.