As reliance on cloud applications grows and employees demand access to their work and tools anytime, anywhere, the problem of “shadow IT” continues to grow as well. In enterprises both large and small, employees are installing and using products without their employers’ knowledge, which has the potential to cause significant headaches in terms of compliance and security. Even in cases when IT approves the use of software found and/or purchased by employees, there could still be issues.
Why? One word: Piracy. Software piracy is a major issue, costing companies billions of dollars every year. Costs can come from a number of sources, including losses due to data breaches, worker hours devoted to securing breaches and repairing equipment and fines from governing bodies that do not look too kindly on businesses using unauthorized software.
Many of these costs are due to businesses’ lack of knowledge about piracy and what’s really happening on their networks. This is one area, though, where what you don’t know can hurt you, and that believing some myths and misconceptions about piracy can cost you a pretty penny.
Myth #1: Small Businesses Aren’t Vulnerable to Audits
The Business Software Alliance is the primary organization responsible for monitoring software use in the U.S. While not law enforcement per se, the BSA works closely with local and national authorities to investigate and prosecute cases of software piracy — and they aren’t only focused on the “big guys.” The BSA investigates more than 15,000 reported cases of piracy each year, ranging from multi-million dollar corporations to small mom-and-pop shops. In short, if there is a reported or suspected case of piracy, the BSA can (and usually will) launch an audit, regardless of how big your business is.
Myth #2: People Using Pirated Software Know It
Many businesses believe that they aren’t using software illegally because they have strict anti-piracy rules, and employees are careful not to install and use pirated software. While establishing policies to protect our network from fake software is an important step, you cannot assume that your employees – even IT – always install legitimate versions. In fact, a significant percentage of pirated software is used unknowingly by individuals who purchase what they believe is the real thing, only to learn later that it is fake. The solution then is to allow only software from authorized, reputable sources, and to prohibit employees from using their own downloads or discs on company machines.
Myth #3: Enterprises Aren’t Liable for Unauthorized Software
Joe in accounting decides that he wants to install a popular bookkeeping program to make his job easier, and picks up a cheap version from an online auction site. He does this on his own, without reporting the installation or license details to IT for inclusion in the software asset manager that keeps track of the company’s software licenses. A few months later, his employer is audited — and is hit with a civil suit for unauthorized use of the program. While certain policies and procedures could limit the company’s liability, it could still be hit with fines and sanctions. That is why it’s so important to develop a clear policy, limit administrator privileges, and pay close attention to where software comes from.
Why? One word: Piracy. Software piracy is a major issue, costing companies billions of dollars every year. Costs can come from a number of sources, including losses due to data breaches, worker hours devoted to securing breaches and repairing equipment and fines from governing bodies that do not look too kindly on businesses using unauthorized software.
Many of these costs are due to businesses’ lack of knowledge about piracy and what’s really happening on their networks. This is one area, though, where what you don’t know can hurt you, and that believing some myths and misconceptions about piracy can cost you a pretty penny.
Myth #1: Small Businesses Aren’t Vulnerable to Audits
The Business Software Alliance is the primary organization responsible for monitoring software use in the U.S. While not law enforcement per se, the BSA works closely with local and national authorities to investigate and prosecute cases of software piracy — and they aren’t only focused on the “big guys.” The BSA investigates more than 15,000 reported cases of piracy each year, ranging from multi-million dollar corporations to small mom-and-pop shops. In short, if there is a reported or suspected case of piracy, the BSA can (and usually will) launch an audit, regardless of how big your business is.
Myth #2: People Using Pirated Software Know It
Many businesses believe that they aren’t using software illegally because they have strict anti-piracy rules, and employees are careful not to install and use pirated software. While establishing policies to protect our network from fake software is an important step, you cannot assume that your employees – even IT – always install legitimate versions. In fact, a significant percentage of pirated software is used unknowingly by individuals who purchase what they believe is the real thing, only to learn later that it is fake. The solution then is to allow only software from authorized, reputable sources, and to prohibit employees from using their own downloads or discs on company machines.
Myth #3: Enterprises Aren’t Liable for Unauthorized Software
Joe in accounting decides that he wants to install a popular bookkeeping program to make his job easier, and picks up a cheap version from an online auction site. He does this on his own, without reporting the installation or license details to IT for inclusion in the software asset manager that keeps track of the company’s software licenses. A few months later, his employer is audited — and is hit with a civil suit for unauthorized use of the program. While certain policies and procedures could limit the company’s liability, it could still be hit with fines and sanctions. That is why it’s so important to develop a clear policy, limit administrator privileges, and pay close attention to where software comes from.
Myth #4: Pirated Software Actually Saves the Company Money
Some companies ignore piracy, thinking that it saves them money. As long as the software doesn’t cause any security risks, what’s the big deal? No one gets hurt, right? Wrong. Piracy costs everyone money, and if you are caught, the few hundred dollars you saved by purchasing fake software will be negated by the tens of thousands of dollars in fines.
If you want to protect your bottom line and prevent harming your business in many ways, it’s important to learn about piracy and take steps toward preventing it from affecting your company. You can still provide the access and productivity your employees demand without creating undue risk.
Some companies ignore piracy, thinking that it saves them money. As long as the software doesn’t cause any security risks, what’s the big deal? No one gets hurt, right? Wrong. Piracy costs everyone money, and if you are caught, the few hundred dollars you saved by purchasing fake software will be negated by the tens of thousands of dollars in fines.
If you want to protect your bottom line and prevent harming your business in many ways, it’s important to learn about piracy and take steps toward preventing it from affecting your company. You can still provide the access and productivity your employees demand without creating undue risk.