System Software Licensing Issues and Options Devdatta A. Divekar

Software SystemApplication OS Sinlge user Multiuser Utilities DBMS RDBMS... CUI GUI Single Tier n Tier

OS Options Server level NT, Unix, Solaris, Netware, Linux Desktop DOS, Windows X, Linux

Issues for selecting OS Cost, H/W supported, Utilisation of resources, Scalability, Connectivity, Reliability, Failure handling and recovery, Security, Sophistication, Ease of use, Maintenance & Admin, Development of apps Issues for selecting Application software Suitability to business, Platform used, Scalability, Support, Quality Certification, Similar installations

Software license It grants an organisation or individual the legal right to use the software Software licensing policy differ from vendor to vendor and takes into account factors like upgrades/updates, support (AMC), software piracy control and manner in which software can be used Business model, Requirement of business, technology deployed are few considerations for type of licensing. Problems from business point of view is change in licensing terms and fluctuating AMC fees

Type of Licenses Perpetual - has no limit on period of usage Term license - has limited period of validity one or two years License could be per seat or per server or both If desktop needs to access multiple servers, per seat license would be more economical

Microsoft Offers 3 forms of licensing OEM, Retail and Volume licensing OEM - for PC manufacturer who bundles the OS with PC Retail - for products that can be braught of the shelf, comes with single license Volume - for those whose requirement is large and will spend minimum of 5 lakh on specific product

Software Assurance Programme Those who signup are expected to pay annual fees for specific products in advance. That would enable them to receive upgrades & updates for that software product within a two year period. It can be renewed after two years.

Novell Netware Comes with server license plus five user connection license. An organisation can later go for additive licenses in multiple of 5. For small business products it offers per user connection licenses. Special pricing for existing customers. Those using older versions can get 40% discount in upgradation.

Symantec Symantec value programme is single purchase, certificate based. It can be purchased with software media pack and necessary licenses via one purchase order. Symantec elite programme - Provides choice of two purchasing options. Commit option allows to maximise their two year volume discount with an upfront purchase commitment. Forecast option helps companies minimise their up-front capital outlay by requiring initial purchase of 25% of two year forecast.

Legal and Financial risks Legal risk involved may include both criminal and civil liabilities for the corporations as well as those running the operations. Moreover, with the amendments to Indian Copyright Act in 1994 Criminal penalties for copyright infringement according to Section 63B include fine upto 2 lakh and imprisonment upto 3 years

Under the copyright act it is illegal to * Copy software or accompanying documentation (example, manuals) without permission of the copyright owner * Knowingly distribute, sell or rent any copy of the software without authorisation from the copyright owner * Run a copyright software program on two or more computers simultaneously unless the license agreement specifically allow this ( multi user or site license) * For companies to authorise, encourage, allow, compel or request employees to make use or distribute illegal software copies

* Make unauthorised copy of software because a superior colleague or friend requests or compels for it * Loan software so that a copy can be made or to copy software while it is on loan Software piracy takes many forms but software under licensing is also a software piracy Needs software management procedure and same standard of management already accorded to other business assets.

Assessment can be done performing an initial software inventory, location and documentation of licenses and summarization of results Establishing policies and procedures to maintain software on an ongoing basis, standardising software, reviewing procedures, retiring obsolete workstations, establishing policies, evaluating usage and maintaining inventory

Key steps company needs to take are 1. Develop and implement a software management policy. The policy should affirm the commitment to use legal software 2. Communicate software policy to employees 3. Software management should be centralised so that one individual or division supervises acquisitions, installations or deletion of software and changes in configuration and keeping acquired licenses in safe custody. 4. When purchasing H/w ensure software preloaded on machines is fully authorised and licensed

5. Conduct regular audits, comparing the organisation’s level of software installation and network usage to the number of programs it has licenses to support 6. Create awareness in senior management 7. Get compliance statement signed from employees 8. Establish software register 9. Keep original disks locked away 10. Take expert help whereever required

Thank you : Vanessa Hutley