In spite of a growing awareness of the significant risks – especially security threats and loss of data – attached to software piracy, an alarming 43% of the software installed on personal computers globally in 2013 was not properly licensed.
The global commercial value of these unlicensed PC software installations totalled a massive $62,7-billion (R690-billion) in 2013.
The finding – contained in the Business Software Alliance’s (BSA) International Data Corporation (IDC) Software Piracy Report, published every second year – underscores the need for enterprises to adopt effective software management practices.
The BSA is a trade group established in 1988. It represents several of the world’s largest software groups, among them Autodesk, a global leader in Building Information Modelling (BIM) Software for infrastructure and architecture.
The BSA’s most recently released report shows that the piracy of software percentage-wise is remaining fairly steady but that the value of pirated product increases rapidly as the size of the world’s economies grows.
Computer users around the world cite the risk of security threats from malware as the top reason not to use unlicensed software. Users’ specific concerns include intrusions by hackers and loss of data.
Other key findings of the Software Piracy report include:
* Rate: The global rate at which software was installed on PCs without proper licensing rose from 42% in 2011 to 43% in 2013 as emerging economies, where unlicensed software use is most prevalent, continued to account for a growing majority of all PCs in service.
* Value: The commercial value of unlicensed PC software installations totalled $62,7-billion (R690-billion) globally in 2013.
* Security Risks: The chief reason computer users around the world cite for not using unlicensed software is avoiding security threats from malware. Among the risks associated with unlicensed software, 64% of users cited unauthorised access by hackers as a top concern and 59% cited loss of data.
* Software Policy Awareness: There is an awareness gap between workers and IT managers when it comes to software policies in enterprises, with workers less likely to say there is a formal policy in place than IT managers.
While the piracy statistics for Africa are high, South Africa’s numbers compare very favourably with the rest of the continent – and the rest of the world.
South Africa’s installation rate of unlicensed software was 34% in 2013 – roughly the same level as it was in 2007 – while the commercial value of unlicensed software over the same period rose from $284-million (R3,1-billion) to $385-million (R4,2-billion).
The respective global figures are 43% versus 2007’s 38%, with a current value of $62,7-billion (R689,7-billion) compared with $47,8-billion (R525,8-billion) in 2007.
Elsewhere in Africa the percentages of the installation of unlicensed or pirated software were astonishingly high. In 2013 Zimbabwe’s unlicensed software installation rates were as high as 91%, with Nigeria at 81% and Egypt at 62%.
While South Africa has good reason to be proud of its relatively impressive software piracy rate, there is no scope for complacency.
The risks inherent in software piracy remain threatening – no matter how low the percentages. The South African government has made limited moves to combat piracy, although there is a project in the works that could generate radical results. Watch this space.
A prime challenge – one highlighted by the BSA statistics – is to create an environment in which small businesses, which generally cannot afford to purchase software, are enabled to access technology without having to indulge in the piracy option.
A potentially viable solution is for small businesses to work together with software companies in order to purchase and use products legally.
The reality, unfortunately, is that, like all other industries, if a company cannot afford the tools of its trade, then it is excluded from entering into that industry in the first place. No-one supplies a forklift to a company until it is able to pay for it.
Business just does not work like that. However, there are invariably innovative solutions to any problem. Autodesk, for example, has an African pricing strategy – one of the few software vendors that does –meaning its software is a lot more cost effective here in Africa than in other parts of the world.
Additionally, Autodesk has included rental options in its product range, thereby lowering the barrier to entry for firms using legitimate Autodesk software.
Education is also key: if end-users are familiarised with the license restrictions applicable to software relevant to their business, they will be better equipped to comply with the law.
Autodesk has a license compliance team, which works closely with the relevant law enforcement bodies, where applicable, across the region as well as directly with customers. The team assists and educates those customers to appreciate the value of using legal software and the dangers of not doing so.
