Pirated software: not worth the risk

By Patrick Lim, General Manager, Red Hat ASEAN | Jun 30, 2009

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Small and medium businesses in Singapore are persistent users of illegal software according to an annual report from anti-piracy group, Business Software Alliance. Despite relentless efforts by the BSA to stamp out the problem by prosecuting both purveyors and users of illegal software, piracy caused dollar losses of approximately US$163 million in 2008.

Businesses use pirated software for one main reason: cost. For many business users, proprietary software with its user licensing structure continues to be prohibitively expensive. Beyond the upfront cost of software purchase, there are support costs and upgrade costs that add to the total cost of ownership. For a small and mid-sized business, the cost of using a suite of desktop productivity software and basic business applications, such as an inventory management system and a customer relationship management (CRM) application, could be burdensome once the purchase price, ongoing licensing and support costs are added up.

Business users of illegal software are, more likely than not, aware of the risks they take. They risk legal prosecution and using pirated software of dubious quality. Despite this, the cost of using fully licensed software is prohibitive enough for them to turn to illegal software.

This is where open source software offers an attractive option. Open source software is a legal, affordable alternative to proprietary software and costly user licensing fees. Unlike proprietary software, with open source software, users are encouraged to use, study, copy, modify and re-distribute the software. The software can be legally used on any number of computers with no restrictions. In practical terms, this means users are free of the restrictive and costly licensing structure common with proprietary software.

For businesses, it is recommended that they purchase commercial distributions which come with comprehensive support for customization, assistance in installing new programs, or patches for new security threats. Today, there are several hundred commercial Linux distributions available, allowing users to select the versions which best meet their specific needs.

Then, there is the subscription model in which business users subscribe to a comprehensive range of services and product updates -- including everything from key technology updates, drivers for new hardware and storage environments, to software enhancements and support for new architectures. The value of the subscription model is that it provides businesses with a predictable cost structure year after year. Users are also not tied to the restrictive technology update structures of the closed, proprietary software model, which typically require users to pay steep upgrade licensing fees to get the latest technologies.

Open source Linux and the subscription model offers a compelling cost advantage over closed proprietary software and a serious option for businesses using illegal pirated software for cost reasons. If these users switch to affordable open source software, the goal of zero piracy in any country would not be so utopian after all.

While the use of pirated software has co-existed with the availability of open source software for many years, the slow adoption of open source software by business stems from unfamiliarity and lack of awareness of its benefits.

Fact is there is now an open source alternative for almost every major software need, ranging from office suites and databases to business applications. OpenOffice, the open source office software suite for word processing, spreadsheets, presentations, graphics, databases, provides features and performance comparable to any proprietary equivalent. Other examples include:

• open source CRM application SugarCRM;
• open source ERP applications such as Compiere ERP and OpenBravo;
• open source accounting package Fitrix;
• open source databases MySQL and PostgreSQL;
• and the Apache web server.

All these open source applications do the job as well as proprietary equivalents. Often, users opt for proprietary software for reasons of familiarity rather than business value. And when cost is an issue, they use the pirated versions. Truth is that many open source applications built on the Linux operating system have features and performance equal or superior to familiar proprietary applications.

Take performance, for example. Linux is generally faster for a given set of hardware specifications, due to greater optimization of the source code. It is also capable of operating on a wide variety of platforms so it is easy to optimize Linux applications for use on a workstation, desktop, notebook computer, web or database server, or even a router. The appearance and behaviour of the Linux desktop including icons and menus can be configured according to user requirements or preference, eliminating any user issue about learning a new interface.

Those who use Linux know that it is a highly stable and robust operating system, resistant to system crashes and need for rebooting. The best testimony to this is that open source Linux software powers mission-critical applications in major commercial environments such as the Euronext stock exchange in New York and numerous governments and defence organizations.

Open source software is a superior alternative without the huge risks associated with pirated software or the high ticket associated with proprietary ones. When businesses evaluate their needs objectively, the most important issue is that their software applications work well and support the smooth running of their operations. Open source software is robust enough for mission-critical work and affordable enough to render pirated software a risk not worth taking.