Business Software Alliance (BSA), the foremost organisation dedicated to promoting a safe and legal digital world, has highlighted the importance of adopting dedicated Software Asset Management (SAM) principles. SAM enables enterprises to adopt good corporate governance practice and helps them to maximise return from their software investments, while at the same time protects then from exposure to legal and financial costs that may come about through non compliance.
“Most companies use technology to improve their efficiency, yet they fail to consider software as a managed asset if it were to be an effective tool,” says Jawad Al Redha, Co-Chairman Middle East, Business Software Alliance. “Companies without software asset management plans are not making the most of their financial assets while at the same time are exposing themselves to possible efficiency losses and potential legal penalties”
“Service industries, in particular, have been slow to catch on; as they typically do not have dedicated software asset management systems in place. If critical assets are not managed well, the cost of operating increases dramatically and their utility decreases. Software is one critical asset that service industry in particular does not manage well,” he adds.
Software has changed the way almost everybody in a service industry works by increasing their productivity and providing new ways to conduct and deliver their work. However, if software is used carelessly and not managed properly it exposes its owners to considerable financial and legal risks. Proactively managing IT assets, including software, greatly reduces the risk of unplanned and unbudgeted IT expenditure, and also enables enterprises to proactively plan future IT project and negotiate better contract terms with software vendors.
“Good corporate governance is a fundamental building block in the creation of a robust and transparent economy in the UAE,” said Juma Al Leem, Director, Ministry of Information -Dubai. “By adopting sound SAM principles, companies and organisations can contribute towards ensuring that there is a fail safe and established system of corporate governance in the country, a key factor in attracting foreign investments and improving productivity and efficiency.”
“Effective Software Asset Management is a part of an organisation overall corporate governance programs. Vendors are likely to pursue legal action against those found to contravene license agreements in order to protect their intellectual property and reclaim the lost revenue accounts. The legal actions also introduce another downside of failing to manage software as an asset, that is damage to a company’s professional reputation,” says Al Redha.
“Eliminating these risks is realistic and possible if businesses recognize that software piracy is very often a consequence of failure to implement software management procedures that allow software to be freely used, instead of an asset requiring the same standard of management already accorded to other business assets,” he adds.
Implementing a software management program is the best defense against unauthorized copying of software in the workplace. It is prudent for all accountants to advise their clients that all software must be considered as part of their risk management strategy. Companies should develop and implement a software management policy that encompasses a firm commitment to use legal software, communicating their software policy to employees, centralize software management functions, asset classification of software, and conduct software copyright compliance audits.
“By taking proactive steps to safeguard software like any other company asset, businesses can immediately reduce the risks associated with software use, while also creating an opportunity to improve overall financial performance,” says Al Redha. “By minimizing outlay on software, guaranteeing software support and tightening management controls businesses can work more effectively, improve security and reduce the total cost of ownership,” Al Redha concluded.
