CIOs Report Unlicensed Software Leads to Data Hacks

This rate of use has been influenced in part by important trends under way in Vietnam. While consumer shipments of PCs dropped precipitously, the consumer installed base nevertheless grew -- a result of shipments in previous years. Hence, the decline in unlicensed rate was driven more by ongoing legalization, enforcement, and education than anything intrinsic to the market. There has been a decline of small PC retailers and a growth in more trustworthy software sources. Security worries over the use of unlicensed software have driven a number of consumers and businesses to obtain legitimate versions of at least security software.

The survey quantifies the volume and value of unlicensed software installed on personal computers in more than 110 countries and regions, and includes nearly 23,000 responses from consumers, employees, and CIOs in those areas.

“Organizations around the world are missing out on the economic and security benefits that well-managed software provides,” said Victoria Espinel, President and CEO of BSA | The Software Alliance. “Businesses should establish software asset management (SAM) programs to evaluate the software on their networks, which in turn reduces the risk of debilitating cyberattacks and helps grow their revenues.”

Ms. Sheryl Lee, Counsel, BSA The Software Alliance Counsel, Asia - Pacific

The survey’s key findings include:

• Use of unlicensed software, while down slightly, is still widespread. Unlicensed software is still used around the globe at alarming rates, accounting for 37 percent of software installed on personal computers – only a 2 percent drop from 2016.
  CIOs report unlicensed software is increasingly risky and expensive. Malware from unlicensed software costs companies worldwide nearly $359 billion a year. CIOs report that avoiding data hacks and other security threats from malware is the number one reason for ensuring their networks are fully licensed.
• Improving software compliance is now an economic enabler in addition to a security imperative. When companies take pragmatic steps to enhance their software management, they can increase profits by as much as 11 percent.
  Organizations can take meaningful steps today to improve software management. Studies show that organizations can achieve as much as 30 percent savings in annual software costs by implementing a robust SAM and software license optimization program.

Mr. Pham Cao Thai, Chief Inspector, Ministry of Culture - Sports - Tourism

Through in-depth analysis, the survey shows companies can implement strong measures, including SAM programs, to improve the way they manage software, thereby increasing profits, decreasing security risks, and growing opportunity.

To explore the survey’s results, including a breakdown of country-specific data, visit www.bsa.org/globalstudy.