Business Strategy for Software Executives
January 21, 2008
Unlicensed Software Attacks the Bottom Line
A new study confirms software misuse costs vendors billions. Here are strategies for reducing revenue loss.
By Tom Lamoureux, KPMG
Research conducted by International Data Corporation (IDC) in 2005 concluded that the world’s software companies were losing USD34 billion in revenue to unlicensed installations. This is more than the gross domestic product (GDP) of 42 countries. Said another way, a USD34 billion software company would be almost on par with Microsoft’s annual revenue as the second largest software company in the world. It would be nearly twice as large as IBM’s software business, which racks up USD18 billion in software revenue annually. Any way you look at it, this is a very significant problem for the industry, one that is due in part to software license agreement violations.
KPMG surveyed software companies in order to understand the license compliance issues faced by most software companies today. The resulting insight shed a light on the extent of the problem and identified better practices in license compliance being applied by software companies today.
Increasing Staff Retention Offshore
Reducing turnover is one of the biggest challenges for software vendors operating offshore. Anuradha Parthasarathy of Global Executive Talent explores the problem and recommends several solutions in this post to the SandHill.com Blog on offshoring best practices.
A Tale of Two Elephants
BEA and MySQL were swallowed last week in two more mammoth deals for the software industry. M.R. Rangaswami of Sand Hill Group says the acquisitions have big implications for the software business Read why in this post to his SandHill.com Blog.
Publish Your Perspective!
SandHill.com wants your opinions. Send your thoughts on the enterprise software industry to SandHill.com editor, Maryann Jones Thompson (firstname.lastname@example.org) and have your opinions published on our site.
Harnessing the Power of Informal Employee Networks
Formalizing a company's ad hoc peer groups can spur collaboration and unlock value. Uncover strategies for success in this article from The McKinsey Quarterly. Read how in this article from The McKinsey Quarterly.
News Update: A Seismic Shake-up
Consolidation redraws the enterprise software vendor landscape - again; plus, more Microsoft executive moves, Google goes to Washington and billions flow from VCs. Read these stories and more software news of the week in the latest SandHill.com Software News Summary.
Poll: Unlicensed Usage of Your Software?
How much of your company’s software do you estimate is being used without a license?
Last week, readers voted on whether calls for reform have an impact on the reliability of software.
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Courtesy of Malcolm Kusher, The Kushner Group
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