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15 May 2009
Comments:2
The channel has a vital role to play in helping to overcome UK piracy, according to the Business Software Alliance (BSA).
Figures released from a joint IDC/BSA study revealed that the UK piracy rate had increased in 2008 to 27 per cent, a 0.04 per cent rise on 2007, but one which equates to £1.49bn in lost revenue for the UK economy.
But with the impact of the 2009 economic downturn yet to register, IDC predicted that piracy levels will increase next year.
Further reading
Marcel Warmerdam, research director of IDC IT markets, said: “In difficult times, companies hold onto PCs longer and that can increase piracy levels as they deploy more software packages onto older machines. It does not look good for next year.”
The BSA also reiterated its intention to prosecute companies that blatantly flout the law. The organisation revealed that so far this year, the value of legal settlements in the UK is 25 times higher than in the same period last year.
Alyna Cope, license compliance programme manager at Autodesk, said firms would often turn to resellers first rather than deal with vendors directly.
“Resellers are often leaving money on the table by not helping customers to manage and control their software assets and keep a track on licensing,” she said.
Julie Strawson, former chairman of the BSA, agreed. “The channel is suffering as much as software vendors,” she said. “Resellers have a huge role to play in education; in fact, their role is vital.”
Robert May, managing director of VAR Ramsac, said: “We are currently picking up lots of competitors’ clients and it is shocking how often we find clients using software illegally.
“Our policy is straightforward. We inform them of their liabilities and responsibilities, advise them of any comeback they may have on the previous incumbent, quote them to rectify the problem immediately and refuse to offer any ongoing support until they are legitimate.”
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A message to BSA Software Members
The software companies and the Licence enforcement bodies such as the BSA need to wake up and smell the coffee!
The world has changed and the 70?s software sales business model is archaic.
Understand your customers ability to pay and the perceived worth they have of your product.
Most consumer products and services can now be acquired in the size relating to your needs and affordability.
Software licences are still sold as a whole product irrespective of how heavy a user you are or how often you use it.
Imagine if you were able or lease it on a monthly or even daily basis or pay for the hours you actually use it.
Sure you will make less profit in the beginning but the volume will grow faster than the revenue reduction.
For too long the software industry has buried its head in the sand and hoped piracy will go away.
It will not only not go away but grow as demand increases and more people get used to free applications.
Software companies have invested millions in promoting SAM (Software Asset Management) and the biggest benefactors have been the Consultants implementing this questionable benefit.
You still don't see numbers from the BSA stating this many thousand PC?s are now dormant due to layoffs, and the value of redundant licences is X million UK £.
Once the economy picks up then hopefully those moth balled licences can be put back into use.
Be honest and examine the vast profits you make to compensate some stock holders and top management.
Use some of that to design a new model of delivery so people pay what they use and they can buy in smaller more affordable chunks.
Look around at mobile phones. Pay as you Go has opened the market to a huge customer segment.
East Africa saw an explosion of phone use once you could buy air time at numerous kiosks for as little as 50p top up.
It was only when the air time packages came down in price and coupled with affordable basic phones did the consumer embrace the benefits of the extensive network mobile phone companies had built.
Imagine if the only way you could have a mobile phone was by contract.
That what the software industry is largely doing right now and it can't see the bigger opportunity of using a new more customer centric delivery model.
Posted by Ali Babaik | 18 May 2009
Piracy is an opportunity for the channel
One of the main contributing factors to the rise in piracy of software, both in the UK and across the globe, is the sheer complexity of licensing schemes that CIOs currently have to deal with.
Licensing schemes have become increasingly unwieldy and difficult to manage, meaning that, despite their best efforts, organisations are struggling to get a grip on their licensing software.
Coupled with the fact that there is no commonality across differing vendors' schemes has made life considerably more difficult and likely brought unintentional misuse of software. This presents a great opportunity for channel partners, as implementing a standard licensing practice, which all CIOs could get their heads round, would certainly eliminate this heightened level of complexity, bring increased revenue and possibly halt the growing software piracy problem.
Posted by Matt Fisher | 15 May 2009
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