Manpower Issues? Sell Genuine Software

Piracy is a term for abuse and an abused term in the IT channel. First
software vendors went to town saying how piracy was affecting their business and
that of the channel as well. Most partners scoffed at this idea and continued
selling pirated OS surreptitiously.

Then came the raids and the channel started feeling victimized. There were
demonstrations against vendors. Partners alleged that the prices were so high
that customers were unwilling to pay for genuine software and dealers who
advocated genuine software lost business to their peers who were not as
principled.

Maybe the channel has a point there, but then again who can decide what is
the right price at which the software should be offered? Surely the creator of a
product, in this case the software, has the right to dictate that.

In the meantime, while continuing its raids on the channel, Microsoft started
working with local IT associations, educating how piracy can affect the
channels' business, their relationship with vendors and also become a legal
hassle, if they were caught. It is commendable that the software giant has
managed to touch base with over 10 associations across the country.

And it seems to be yielding some results. So far most partners are just plain
scared to sell pirated software because they don't want to be sucked into a
legal quagmire, if they are apprehended.

But now comes a new and interesting facet to the entire piracy juggernaut.
According to a recent study by the Business Software Alliance, reducing piracy
over the next four years can generate 44,000 IT jobs. At a time when the entire
channel, especially the solution provider community, is besieged by manpower
crunch, this opens a totally new line of thought.

vinita bhatia

Most of the channel will still scoff at this figure and demand to know how
refusing to sell pirated softwares can lead to a boost in availability of jobs.
But take a look at these figures released by the survey.

In 2007, Asian economies spent over $231 billion on IT goods and services
including computers, peripherals, network equipment, packaged software and IT
services. That spending supported more than 3,48,000 IT companies with 5.5
million IT industry employees, and helped generate $167 billion in IT-related
taxes.

What the survey basically says is that moving towards a piracy free economy
will result in highly skilled jobs to the labor force. And with the funds that
are thus generated, new companies will come into being, probably funded by the
software giants or maybe influenced by the potential in the software and
affiliated services business.

Sounds utopian? But there is no denying that software gives birth to another
business stream and that is services. And the more the genuine software sold,
the higher the chances of offering different modes of services to the customer.

According to IDC, for every $1 spent on legitimate packaged software, an
additional $1.25 is spent on related services from local vendors such as
installing the software, training personnel and providing maintenance services.

And personally I don't believe that customers are unwilling to pay for
software or services anymore. Most companies today are aware of the risks they
run if they use pirated software, especially on a network. Add to it, they can't
or don't want to deploy a huge IT team so would prefer if they can outsource the
IT infrastructure management and associated services to a third party.

I think the reason most partners who sell pirated software are doing it more
out of habit and fear. This is something no vendor can fight against. This is a
conscious decision that every partner has to take for himself. Over time, it
will only result in a more hassle-free and transparent business, which in turn
relates to peace of mind. I am sure this will make up for the initial loss of
customers for not selling pirated copies.

Think about it.

vinita bhatia

vinitavs@cybermedia.co.in