Using pirated software could harm your cash flow, damage your reputation, and result in data loss.

Piracy spirals in businesses

There are many different forms of piracy. In this case, we are referring to the unauthorised use of copyrighted software. This sounds quite far removed from the daily demands of running a business, but using software without a valid licence is an infringement of copyright and exposes your business to legal, financial, technical, and reputational risks.

The extent of the problem is far-ranging. Analyst firm, IDC, calculates that more than one in four pieces of software in the UK is illegal. However, keeping your software in order and proactively managing it can save you significant sums of money and make your business more efficient and competitive.

It is perhaps easy to understand how software piracy has become ubiquitous in this digitised age, when everything is done online - filing accounts, updating customer records, diary management and much more.

Technology is at the heart of almost all businesses, from accountants to personal trainers, and like any other business tool, your professionalism in procuring and managing that tool should reflect its contribution to the business.

But as a general rule; to remain credible anything that is used should be paid for. Making exceptions will only land businesses in hot water.

The business case for better software management

Legal obligations aside, there are some very compelling reasons for businesses to ensure full compliance. Firstly, for the protection of the existing software running on your systems. Illegal software can contain pre-loaded malicious software, Trojans and viruses.

Unlicensed software is not always eligible for manufacturer patches, leaving computers vulnerable to infection, subsequent data loss, and possible system failure.

The consequences of which could be disastrous, especially for those that do not have robust back-up systems in place, which tends to be the case for many small businesses.

When you consider the mass of valuable information and work saved on computers the prospect of losing all that data could be fatal for a company.

There are also cost benefits to taking a considered and thorough approach to software management, particularly as many businesses have more software licences than they need.

Taking stock of software installed on your systems helps to ensure licence compliance and identifies any software that is surplus to requirements, therefore avoiding unnecessary cost to the business.

Software Asset Management (SAM) is a best-practice way to analyse what software you have, to determine what licences you need and how to manage your software more efficiently.

An effective SAM programme will run a detailed inventory of your assets, put policies in place to ensure long-term compliance, streamline procurement processes, and lay down guidelines for staff.

As employees increasingly bring their personal devices into the workplace, such as MP3 players and laptops, the risk to business of unknowingly inheriting illegal software is heightened.

The company should emphasise clearly in staff manuals that installation of unlicensed software has a harmful impact on the company and individual employees will be held accountable for breaking company guidelines, resulting in disciplinary action.