Why pirated software may cost you your business

Most people use pirated software because a pirated DVD containing the latest version of your preferred software is certainly much cheaper than buying the original product. At least, that is what they think. The reality is quite different.

A recent study by the Harrison Group has revealed that pirated software comes with a host of hidden costs that negatively impacts the productivity of users and enterprises that rely on pirated software.

According to the study, PCs running genuine software were much more productive than PCs running counterfeit software. Machines that were using original software were faster at booting up, printing, opening documents and surfing the Internet. In addition, those machines were also better at managing power use. The key findings included that 67 per cent of the time PCs running original software were 100 per cent faster.

These results clearly show that productivity is impacted when users and enterprises use pirated software. Over time, those unproductive seconds and minutes add up into hours and days lost.

The results from this study alone clearly demonstrate that the total cost of ownership of using pirated software could be much greater than just the cost of the DVD that people buy from a retail outlet.

The total cost of ownership calculation also needs to take into account the loss of productivity from downtime resulting from system instability and security issues. Systems running pirated software tend not to be updated, and so end up with bugs and security vulnerabilities that are not fixed. This means that these systems are inherently insecure and are thus much more likely to be compromised.

How likely is it for a system run with pirated software to be hacked? The report also found that nearly one in four pirated operating systems became infected at installation, or independently downloaded and installed malicious software upon connection to the Internet. One in four was also unable to download automatic updates and one in five were unable to even manually install updates.

At best, a compromised system will use up CPU cycles and slow down the PC. In the worst case scenario, a badly compromised system means hours devoted to uncovering and eradicating viruses and Trojans. And if that does not work, a clean install is needed, which means not just reinstalling the operating system, but eventually, all the other applications and associated data.

Shalini Ratwatte, Consultant to the BSA Sri Lanka Committee, said: “Combine these findings with the fact that pirated software makes transactions like online banking less secure and it becomes clear that pirated software is certainly not the cheap option that people think it is. As policymakers endeavour to improve corporate workforce productivity by leveraging on information technology (IT), this is one area that they should pay attention to.”

She continued: “On a broader level, the fact that in our country software piracy continues to reduce steadily, will contribute positively to the influx of foreign direct investment as well as the growth of the local IT industry and job creation. The tax revenue potential for the Government is often overlooked.”

The BSA promotes policies that foster technology innovation, investment in the IT industry and, most importantly, a world where computer infrastructures and networks can be trusted.

The Business Software Alliance (www.bsa.org) is the world’s foremost advocate for the software industry, working in 80 countries to expand software markets and create conditions for innovation and growth. Governments and industry partners look to BSA for thoughtful approaches to key policy and legal issues, recognising that software plays a critical role in driving economic and social progress in all nations.

BSA’s member companies invest billions of dollars a year in local economies, good jobs, and next-generation solutions that will help people around the world be more productive, connected, and secure.

BSA members include Adobe, Agilent Technologies, ANSYS, Apple, Aquafold, ARM, Autodesk, Bentley Systems, CNC/Mastercam, Dassault Systèmes SolidWorks Corporation,  Mentor Graphics, Microsoft, Minitab, Orbotech, Pitney Bowes, PTC, Progress Software, Quest Software, Rosetta Stone,  Siemens PLM Software, Sybase, Symantec, Tekla and The MathWorks.