The Cost of Non-compliance (Part One) – What is it and can you afford it?

By Rob Greenhalgh, Asset Management Solutions Specialist, Data^#3

You may already be aware of recent press releases, from the internationally respected online IT news channels such as CRN¹, naming and shaming Victorian based organisations who are using software illegally. These organisations have been fined by BSA | The Software Alliance (BSA) or forced to pay unexpected and unbudgeted costs to software publishers. Click below to view some recent examples:

• June 2014, Sydney – $ 100,000 settlement for unlicensed Autodesk and Microsoft software
• November 2014, Perth – $ 118,000 settlement for the illegal use of Autodesk and Adobe products
• September 2014, Perth – $ 65,000 involving Autodesk
• July 2014, Europe – EUR 4.5 M ($ 6.2 USD) alleged illegal use of Attachmate products

I think you will agree that once your company name is in the headlines for illegal use of software, the damage to the brand is often irreparable. Why let it be a reactive situation that causes such damage? Make it a proactive situation that saves the company’s reputation and invaluable brand. Did you know that the majority of these issues are often caused by unknown incidents within the company or genuine mistakes however, for some they are ignored with the mindset “It will never happen to us.”

Irrespective of the reasons, they all amount to the same outcome. So, what will it take for you to start noticing this ever increasing trend and when will you start taking control of these situations? Will it be an audit from a software publisher? I truly hope not.

I have been working in IT Asset Management for 15 years and have been involved in a variety of engagements globally. Software audit activities have become ‘business as usual’ and in some regions, are relentless, with the revenue lost by the major publishers estimated by Gartner to be at $62.7 Billion in 2013 and $320 Billion in 2014. I have seen very aggressive and unforgiving audits and collaborative audits, which allow companies to run the audits themselves or to have assisted audits.

Regardless of their form, they all have a common outcome, a cost to an organisation, whether it be financially or reputably. Which is worse – you make up your mind. My recommendation would be to act now.

This article is the first in a series of three blogs to highlight the need for IT Asset Management and how Data^#3 can help you. In the next issue we will explore the common benefits of IT Asset Management that will save you money by managing risks through effective governance.

To learn more about how Data^#3 can assist you or to contact our Asset Management Team, visit our Asset Management page.

[1] Maher, W. (2014, November 25). Illegal software costs Victorian architectural firm $118,000. CRN. Retrieved from: http://www.crn.com.au/News/398177,illegal-software-costs-victorian-architectural-firm-118000.aspx