Local IT supply house Workgroup has struck a strategic alliance with independent licensing company LicenceWise, with the aim of assisting companies and resellers in addressing the risks involved with the use of unlicensed software.
According to a recent Business Software Alliance (BSA) survey, unlicensed software is installed on more than 38% of all new PCs sold locally and in addition to this, an estimated 55% of older machines have been identified as an area of risk to companies in SA.
LicenceWise MD Dave Michie says that while figures for SA are lower than those found in Europe, the statistics are still alarmingly high.
Workgroup MD Doug Woolley feels the new alliance partnership is ideally positioned to fill the gap in the marketplace for an independent, unbiased software risk management assessor, which is able to represent the channel in advising their clients to become legitimate users of software.
"The pressure is on for public companies to ensure their software is licensed prior to a possible investigation by an organisation such as the BSA and KPMG. This is good corporate governance," he says.
Michie says eight out of 10 companies do not actually have a software strategy in place to counter any problems that may arise.
"To follow a sound corporate governance policy, it is important to assess the organisation`s exposure to the use of unlicensed software and account for the contingent liability. Many smaller businesses can`t afford the burden of an immediate investment in software and the associated penalties that follow prosecution for the historical use of illegal software."
The LicenceWise programme reviews a company`s software and hardware using an audit methodology independent of any existing IT service provider relationship its client may have in place.
"We are not trying to undermine any existing supplier relationships and respect the channel`s integrity and relationship with their client," says Michie.
"It is with this in mind that we preclude ourselves from selling software as a reseller, believing that our presence as an independent partner will guarantee that an audit will be conducted free of any contractual or revenue-based obligation."
LicenceWise has moved to work closely with a number of auditing firms whose clients may be using unlicensed software on their systems, yet do not have the technical skills in place to properly assess and resolve software liabilities as they become apparent.
Michie believes resellers also need to be aware they stand to be called to account if they remain ignorant of the risks involved, or if they ill advise a client on their licensing programme.
"The problem of unlicensed software affects all vendors. It`s in their interests to support an independent review, and that is why we intend making our resources available as a professional service to the channel," he says.
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