Software Asset Management (SAM) Discussion

Piracy in the software industry continues to grow, this time slashing $48 billion in the revenue of software companies in 2007.

This is in contrast with the dip of piracy rates in most countries. Piracy rates decreased in 67 out of 108 countries.

Despite that, an $8 billion overall loss growth is being experienced worldwide by the software industry.

It has been noted though, that half of the increase in losses are attributed to the depreciation of the dollar.

The Business Software Alliance or BSA, have reported in their fifth annual report that there are “emerging markets”, like Brazil,
Russia, China, and India, which grow in PC sales per year. However, the rate of growth of PC sales does not correspond directly
to the number of software shipments. 

BSA President Robert Holleyman stated that these emerging markets report to have 46 percent
of new computer shipments last year, yet the percentage of software shipments is just 17.

That clearly tells how the number of software products lags behind PC sales, and this provides evidence of piracy. The BSA provides
in-depth reports of the effect on revenue sales of firms due to software piracy.

The Business Software Alliance has reported the first fall in UK software piracy for three years. That still means that the licensing watchdog is claiming that 26 percent of all software in use in the UK is illegal - something that is causing continuing concern to the major vendors who are facing a drop in new license sales.

In a global survey of 108 nations, the total piracy rate grew in 2007, with Armenia pinpointed as the worst offender with 93 percent illegal software usage. According to the BSA, the global piracy rate now stands at 38 percent, up three points from 2006. The country with the lowest software piracy is the US, at 20 percent.

Despite what appears to be good news in the UK, the BSA has vowed to keep pushing its efforts to reduce what it still sees as an ‘unacceptable’ level of piracy - so don’t expect audits to do anything other than increase in 2008.