Computer users face more software audits, increased support
costs and new licence conditions as software houses seek to shore
up their revenues in the face of flat sales.
The Federation Against
Software Theft (Fast), an anti-piracy group made up of
organisations that use software, reported audits among members were
up 20% in a year. Microsoft led, with 18% of members reporting a
compliance-related visit from the Redmond firm, but PDF-maker Adobe
and security firm Symantec had also begun to audit customers, it
said. In all, 34% of members said they had undergone a software
audit.
Vuk Trifkovic, an analyst with
Datamonitor, said global
software sales had levelled off in the first half of 2008, but had
declined in financial services markets, which faced "some
difficulties".
"I cannot say for sure that software firms are using compliance
audits to boost revenue, but it would be a common sense reaction,"
he said.
Mike Lawrence, managing director of
BentPenny, a software
reseller, said the inspections were "revenue-grabbing". In 40 years
he said he had come across very few incidents of deliberate copying
to avoid payment. "Most big companies can be about 10%
over-licensed, just to avoid this," he said.
Figures from Fast showed that 41% of members audited were
over-licensed. Spokesman Phil Heap said this meant companies could
save money by becoming compliant and managing their software assets
stringently.
He said, "Reduced sales are definitely a driver for software
publishers to increase their enforcement activities. We are also
seeing software publishers engaging directly with organisations
through other types of initiatives such as software asset
management programs, encouraging companies to produce an effective
licence position (ELP) and true-up on the required licences. Some
are even offering incentives such as exemption from enforced audits
if they join the voluntary initiatives."
Richard Steel, president of local governement IT association
Socitim, said he was unaware of a higher rate of audits among his
members. A more pressing problem was helping the government's
Office of General Commerce (OGC) to renegotiate its Microsoft
licence. The OCG has called for comment with a view to implement
the new deal in April 2009.
Steel said Socitim was hoping to move away from rigid boundaries
between distinct services such as police, schools and fire and
rescue. "We would like to see a situation where the licence goes
with you on your device," he said.
Carl Maugham, operations director of
Erudine, which builds
software development tools, said, "There has been significant loss
of appetite for new projects among large users." The slowing
economy, especially in the financial sector, meant projects were
being postponed by 12-18 months, he said.
Software companies faced lower revenues because of virtualised
systems, he said. They were using audits to make sure they got what
was due, rewriting their licences to preserve revenues, and seeking
other sources such as support and tools, he said.
The
Business
Software Alliance, an industry body that fights copyright
infringements, said
piracy cost the global industry £24bn in 2007. Britain was
relatively good, with only 24% of PCs found with unlicensed
software. But piracy still cost UK software houses £900,000.