Microsoft has reached settlements of £500,000 and £250,000 with two UK customers over unlicensed software.
The software giant said the settlements — reached earlier this year — show the potential downside for companies of not having the proper controls in place to manage their software licences.
In addition, a survey conducted by Microsoft of 25 UK customers that have worked with Microsoft partners in the last year on software asset management projects found that between them the companies had 2,000 copies of unlicensed software.
Alex Hilton, Microsoft UK's licence compliancy group manager, told ZDNet UK sister site silicon.com: "Two thousand copies out of 25 customers is shocking and that's just a small sample."
He said in many cases companies are not aware of unlicensed software as an issue: "I think a high proportion of it is not malicious or deliberate; it's just not viewed as a high priority."
Hilton added there are big advantages for companies that get their software licensing in order, on top of cutting the risk of big settlements with unhappy software companies.
"When companies get into a negotiation with suppliers they are in a better position because they know what they've got. It's not just about software it's about IT asset management."
More help could be at hand with a new software asset management standard — ISO 19770 — in the works, he said.
"That gives customers something to work towards. Now what we've got is a document that says here are the accepted criteria that you can adopt and software asset management looks like this," he explained.
Talkback
But was it unlicensed *MS* software? MS has used the BSA to hammer wayward Novell customers into dropping Novell all together and ponying up for MS' variants.
See:
http://www.motherjones.com/news/feature/1998/01/burstein.html
That said, I'd rather have seen the two companies take a lesson from Ernie Ball Guitar, who had the fortitude to say no to extortion.
See:
http://news.com.com/2008-1082_3-5065859.html?tag=lh
How good of Microsoft to first come up with licensing terms people can practicely graduate in. Then litter the market with PR articles that claim just about the opposite. And teach their sales force and partners to say just about anything with no real liability whatsoever. To then come in with a bunch of sponsered laywers and extorting their own customers into terms and agreements of their own liking.
Yes, Microsoft says. It's a problem but it's your fault anyway. Just keep using our products (meaning: buy our licences at our terms sooner or later) and we'll come up with and comply to some sort of ISO sometime somewhat. In the mean time we'll be sponsoring our sponsered laywers, think of new licensing terms and keep on saying how wonderful and good our products are for our, errr, your business.
Sorry, but you must like walking a fine line today if you buy any Microsoft license from any sales person if the boss of that sales person doesn't sign a contract that states that he and his company will pay up front whatever the BSA states that needs to be payed for whatever reason if things are not in order in the mind of the BSA. It's time to put liability where it belongs. Let's see what they will say yes to when their ass is on the line. Put your money where your mouth is, not mine. You say I need to buy this? Good, sign here and I will. You won't sign? Then I won't sign either. Hello world of competitive licensing and migration services pricing.
Wow, that saves a bundle. What, around the clock total service included as well? And all most of my employers need to learn is that File, Open is still File, Open? And that the knowledge workers might need some retraining on the job but hey, aren't they knowledge workers so what's the problem other then getting used to a new thing in a jiffy? Will there be other problems along the way? Ofcourse there will be, there are always problems but nothing we can't handle. After all, we have some catching up to do. Why hasn't my previous sales rep told me this before? Oh right, figures.
Because frankly, with the way things are going lately I'm this close of saying that buying a Microsoft license or using a Microsoft product comes close to taking a legal risk.
So get your sales rep to get things in order and sign it off with personal risk (do check with a laywer that's very familiair with the subject) or get another sales rep that will. That always gets them. And be sure to let them know they have Microsoft/ BSA to thank for it. Maybe that'll teach Microsoft to do some customer friendly, understandable and fair licensing next time around.