PC Software Piracy Hit Illinois Economy Hard

The BSA estimates that the Illinois economy lost the equivalent of 5,646 jobs due to PC software piracy. Trident Contract Management and Aspera GmbH offer suggestions on how companies can reduce software piracy through software asset management (SAM).

An IDC study released last July by the BSA states that software piracy resulted in an estimated loss of 5,646 jobs in Illinois or the equivalent of building 1,229 affordable housing units or building 11 new middle schools. Also noted in the study was the close similarity between PC usage in Illinois and that of the United States as a whole. The BSA encourages companies to implement software asset management programs, which significantly reduce software piracy within an organization.

The study reveals a growing trend in the Illinois economy. In 2003, the BSA announced that piracy cost Illinois nearly 5,000 jobs. Now, the latest IDC state piracy report, which collected data during 2007, shows a 12.9% increase from 2003 in the amount of jobs lost to software piracy in the state.

In the current business climate companies are doing everything they can to reduce spending. Most organizations view IT as a cost center, so it can be easy to push back a project like software license management when the IT budget need to be stretched. Bernhard Boehler, managing partner of software license management specialist Aspera GmbH (www.aspera.com), says, “While we understand the need for IT to reduce costs, putting your software asset management project on hold or even pushing back starting it will ultimately result in significant financial losses. What’s more, the findings released by the BSA only increase the urgency for companies to implement software asset management.”

One of the top software piracy drivers is misuse of volume license agreements (installing more copies of the software than the license allows). The most effective and persistent way to prevent volume license misuse is through software asset management.

Based on the numerous organizations Aspera and its Midwest based partner, Trident Contract Management (www.trident-it.com) have helped, the following software asset management policies can diminish volume license misuse (and software license costs):

1. Offer incentive schemes to employees for prudent use of software.
2. Provide a company-approved list of alternatives to purchasing new software: educate employees about free alternatives they are permitted to use and provide used software.
3. Set up an efficient, reliable approval process for new software. Employees will be more willing to follow company policies when their requests are acknowledged and fulfilled in a timely manner.
4. And, possibly most important: be transparent about costs.
   

   Sign up for ITworld's Daily newsletter
   Follow ITworld on Twitter @IT_world

• Email
• Print
• Share
  • Slashdot
  • Digg
  • Stumble
  • Reddit
  • Newsvine