|
For nearly 20 years, the Business
Software Alliance (BSA) has
been working to help small busi-nesses understand the value of their software assets. BSA believes that all
businesses want to run efficiently, competitively and legally, which is why they have helped businesses better under-stand the risks associated with software piracy by providing free tools and educational materials on how to begin implementing software management practices as well as an overall software asset management (SAM) program within their organization.
Even though BSA has made significant strides by providing free educational resources, guidance and software asset management strategies to businesses worldwide (see Free Help for Staying Legal sidebar), software piracy continues to be a growing problem throughout the world. Unfortunately, education alone does not always ensure priority for this important business process and many small businesses end up paying stiff financial penalties if caught using illegal software, as well as facing unnecessary security risks and safety threats from software that is often fraught with viruses and malicious code. Not to mention, these businesses are simply breaking the law.
Free Help for Staying Legal
Through a recent partnership with the Small Business Administration (SBA), BSA has expanded its reach this year alone to nearly 100,000 small businesses to provide information on proper software asset management and the risks associated with the use of unlicensed software. In addition, BSA tools and best practices guides—
including the HealthCheck, Licensing Guide and Software Management Guide, can be downloaded from www.bsaaudit.com free of charge. A service greatly appreciated by any business trying to determine whether their organization is using unlicensed software and improve control of its IT network. |
Last year alone, the United States’ IT industry lost $7.3 billion as a result of software piracy. Furthermore, an independent study shows that 21 percent of software in the United States is unlicensed.
Small businesses often face the greatest risk for software piracy because of their lack of established software asset management practices in contrast to the often dynamic nature of their business operations. This can be a costly oversight.
Small businesses paid over $11.4 million in fines to settle software piracy claims in 2006 alone, a considerably higher business expense than investing in legitimate, licensed software. The use of improperly licensed or pirated software is against the law and can result in fines of up to $150,000 for each software title copied.
CAD/CAM Suppliers Aid in Software Asset Management
CNC Software/Mastercam is a CAD/CAM software supplier that understands first hand the risks associated with using illegally reproduced copies of their software.
“One of the main reasons we joined the BSA as a worldwide member is to ensure that our licensed customers’ investments are protected,” said Brian Summers, vice president of CNC Software/Mastercam.
“Piracy impacts developers and their customers directly because for each person using software illegally and without paying for it, it is that much less revenue that can be contributed towards research and development to make better software products.”
“If our software is altered in any way we can’t guarantee the accuracy of it. It is possible that the integrity of the software can be compromised if manufacturers are not using the original version. Many people spend $250K on machine tools, but rely on software that was illegally modified by amateurs to run these machines—this “cracked” software could introduce viruses, bugs and malicious spy-ware,” says Summers.
Another interesting point that Summers brings up is that many small businesses and individuals that download unlicensed versions of software aren’t aware that they are breaking the law because they lack a software asset management program, which unintentionally puts their company at risk.
Software asset management programs and awareness are an important part of a healthy strategic plan for any business, and as a supplement to the BSA and SBA’s efforts CNC Software/Mastercam is working on a fact sheet about software management to include with its products. |
Organizations that are using unlicensed or illegal software are more vulnerable to viruses and ineligible to receive technical support or software upgrades. Unlicensed software can sometimes produce inconsistent, inaccurate or even potentially unsafe results that can delay projects, and at worst, create faulty products.
While guidance and education can go a long way, time has shown that if we want to stop software piracy, then we need to enforce copyrights. No business or industry should have to sustain such substantial losses, which impact their ability to invest in research and development and expand their businesses (see CAD/CAM Suppliers Aid in Software Asset Management sidebar). As a result, BSA’s enforcement program was launched in 1993 and has investigated software piracy in thousands of businesses worldwide resulting in millions of dollars in damages, settlements and, in some cases, criminal prosecution (see Reporting Piracy Rewards sidebar).
Tips for Software Asset Management
Sound software asset management makes good business sense, but many businesses see software as an expense rather than an asset that must be valued and which can greatly contribute to their bottom line.
That perception needs to change. All businesses should know that software asset management programs are not only simple to implement, but they can also save businesses money, enabling them to better plan for software purchases and potentially negotiate lower prices with vendors.
By implementing simple processes and controls, a business can not only ensure its employees have the right tools to perform their job effectively and securely but also identify ways to optimize software expenditures (see Maximize Software Assets and Streamline IT Resources sidebar). In addition, businesses that have proper licenses for its software are eligible for tax benefits associated with software depreciation.
Reporting Piracy Rewards
Thousands of reports are submitted every year by concerned individuals providing information about unlicensed or illegal use of software. In 2005, to reward people for confidentially reporting software copyright infringements, BSA added an extra incentive to its enforcement program by offering up to $200,000 for detailed information about software piracy.
This year the reward was increased up to $1 million for a qualifying report of software piracy. The $1 million amount was expected to return to $200,000 this month, but BSA recently announced that the $1 million incentive would remain intact throughout the remainder of 2007 due to the strong support given on behalf of the industry regarding BSA’s efforts to counter software piracy. To learn more about the BSA rewards program visit www.bsa.org. |
Benefits of implementing a software asset management program include:
- Cost savings, not only in direct expenditure on software, but also in related process and infrastructure costs.
- A potentially stronger negotiating position with software manufacturers and improved software purchasing arrangements.
- More strategic infrastructure planning.
- Prevention against over-licensing and identifies over-deployment of hardware while reducing the IT administrative and support burden with its associated costs.
- Increased control for the IT department regarding what software an employee has access to, significantly reducing the opportunity for users to introduce unlicensed software to the network.
Summary
In the fast-paced, highly-competitive environment of small businesses, every decision counts. Concerns about improperly licensed or outdated software generally are not a priority until there is already a problem. The clean-up to rectify the various issues is then time-consuming and ultimately more expensive than if a business had become compliant in the first place. Unfortunately, not all businesses understand that good corporate governance extends to their IT network and means a good system of checks to ensure ethical and legal operations. Through continued educational outreach, small businesses will be encouraged to consider the benefits of implementing a software asset management program as a priority rather than an afterthought.
Maximize Software Assets and Streamline IT Resources
Earlier this year the SBA endorsed BSA’s mission through a collaborated effort to distribute “Software Strategies for Small Businesses: Best Practices for Software Compliance (Best Practices)” to over 100,000 small business through SBA’s extensive network of field offices and partnerships with public and private organizations across the country. This guide encourages small businesses to incorporate responsible software management strategies into their business plan, thus maximizing their software assets and streamlining their Information Technology (IT) resources. The guide includes strategies for:
- Establishing a formal software policy statement
- Centralizing the asset management process by empowering an individual or team to implement the software policy
- Creating proper purchasing procedures
- Engaging in “self-help” through asset audits
The SBA and BSA Best Practices can be found at www.SmartAboutSoftware.org. |
|
SHOP MANAGEMENT SOFTWARE ASSET MANAGEMENT
