Increasing the use of properly licensed software would have a greater impact on the economy than if there were similar growth in the use of pirated software.
This was one of the biggest findings from a study conducted by BSA | The Software Alliance and business school, INSEAD. The analysis draws on data from 95 countries to demonstrate the benefits to national economies of using fully licensed software.
According to the study - "Competitive Advantage: The Economic Impact of Properly Licensed Software" - a 1% increase in the use of licensed software would generate an estimated R2 billion ($245 million) in national production, compared to almost R1 billion ($123 million) from a similar increase in the use of pirated software.
A recent IDC study also found that users who install pirated software on their computers in the hope of saving money are in for a surprise.
The study, commissioned by Microsoft, found that the chances of infection by unexpected malware are one in three for consumers and three in 10 for businesses. As a result of these infections, says the IDC, consumers will spend an estimated 1.5 billion hours and $22 billion identifying, repairing and recovering from the impact of malware, while businesses will spend around $114 billion to deal with the impact of malware-induced cyber attacks.
The BSA states its study confirms that increasing the use of licensed software corresponds to substantial positive gains in gross domestic product (GDP), and that the economic stimulus effect of properly licensed software is significantly greater than that of pirated software.
"Using properly licensed software reduces risk and creates operating efficiencies that go directly to the bottom line for enterprises," says Marius Haman, chairman of the BSA South Africa committee.
"This study confirms that licensed software is not just good for firms - it is an important driver of national economic growth. Government, law enforcement and industry in South Africa should take every opportunity to reap these potential gains by reducing piracy and promoting the use of properly licensed software."
The study also found that each additional dollar invested in properly licensed software has an estimated return on investment of almost R200. This compares to a little over R150 return from each additional dollar worth of pirated software put into use.
Furthermore, increasing licensed software use globally by 1% would inject an estimated $73 billion into the world economy, compared to $20 billion from pirated software.
According to the BSA, every country included in the study saw greater economic returns from properly licensed software than from pirated software.
On a dollar-for-dollar basis, it explains, the return on investment from using properly licensed software is greatest in developing countries - $437 in extra GDP, on average. Still, the BSA adds, countries across all income levels benefit - each additional dollar invested in licensed software has an average return on investment of $117 in high-income countries and $140 in middle-income countries.
"Previous studies have shown that value-added services delivered with properly licensed software help firms to reduce costs and increase their productivity. This report goes one step further to ascertain the impact of software use on national production," says Eduardo Rodriguez-Montemayor, senior research fellow at INSEAD eLab.
"The results make it clear that licensed software is beneficial for business and national economies - and that licensed software has a greater economic impact than pirated software across all countries included in the study."
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