Pirated software is a lost opportunity for channel partners to make a sale, a fact that is negatively impacting the software industry in SA.
This is according to Microsoft SA MD Mteto Nyati, speaking during an interview with ITWeb after Microsoft SA won the best customer-focused organisation in the country award at the African Access National Business Awards last night at the Sandton Convention Centre.
A recent study by IDC says for every $1 loss to Microsoft from software piracy, the partner ecosystem will be impacted by $5.50 from both loss in revenue and higher operating costs.
Piracy is a key challenge in the software domain, Nyati pointed out. “This is a matter of concern, as almost 95% of Microsoft's business is through the channel. The company's existence in the country depends on the channel.”
He said most of Microsoft's partners have always said that as a company, Microsoft is soft when it comes to dealing with piracy. “Counterfeit software has affected the market in such a bad way and the company is embarking on strategic measures to combat this.”
Microsoft's customers, as well as channel partners, are crucial to growing the company's business in SA, he pointed out. The business drive of vendors, he added, should not only be to sell the software, but also to serve and protect its customers in the best possible way so that they can help improve its business.
Nyati said Microsoft is working on a number of measures. “One of the things we are doing is encouraging the government to tighten the laws against piracy. The legislation that we currently have is not that strong.
“We are also trying to find ways to punish the people who are pirating our software,” he warned. “In the past week, there have been cases where people who were selling our pirated software faced harsh penalties. This will send a message that SA does not tolerate piracy.”
IT is a fast-moving industry and the skills set can become obsolete in a very short time, he noted. “As vendors, we need to help our channel partners and customers to align to things like mobility, identity management and security, as we move into the new frontiers of technology like cloud computing.
“The skills for these technologies are very crucial for survival in this era, so we need to help our partners skill themselves up around these key trends.”
He said Microsoft's main objectives are to focus on its channel partners, as well as to make sure it complies with SA's regulations such as BEE requirements.
The keynote speaker at the awards ceremony, Danny Jordan, said the country should continue working hard to produce skills and prevent the “brain drain” which is a big challenge in the country.
Blue Label Telecoms brothers, Brett and Mark Levy, were also recognised for being the top performing entrepreneurs of the year.
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