June 25, 2015

Why You Might Be Running Unlicensed Software and How It Could Cost You Big Money

At Promethius Consulting, because as a Managed Services Provider we manage so many computer networks in Indiana, we have a whole lot of experience with software licensing. It seems like licensing your software should be easy, right? In reality, it's anything but easy.

In fact, most networks that we inherit are found to be running several applications without a proper license. This can be a huge liability to an organization. Audits are real and monetary penalties are stiff. Software Licensing is one of those issues that most business owners overlook and are completely unaware of.

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Show Notes:

  • Many companies are running improperly licensed software and do not know it. ("under-licensed")
  • Software companies often change licensing requirements, which greatly adds to the confusion of software licensing.
  • Microsoft is probably the most complex and difficult to understand.
  • There are actual groups that have audit ability against you(included in your "I Agree" contract).
  • Penalties can be stiff.
  • If you are audited, you typically have to "become compliant" all at once, which can be very costly.
  • Most software allows you to install many more instances than you have paid for. This adds to the problem.
  • Different types of licenses. Can get very complicated.
  • Retail License or "box copy," Open License (usually preferred for businesses), Subscription-based License (Like Office 365)
  • Promethius manages the software licensing for all their Managed Services clients in Indianapolis.
  • If you are audited, you really should get the help of a seasoned IT consultant to walk you through it.

Tony Valle

Tony Valle is a founding partner at Promethius and manages the business development side of our business. Earlier in his career, Tony was a Programmer/Analyst for Northern Trust in Chicago, supporting a system that processed about $40 billion in transactions per day. Tony's talents are a unique blend of highly technical and highly creative, which makes him a powerful force in the IT world. In his personal life, Tony enjoys writing music, playing piano and guitar, and studying history. His son Louis is 8 years old and also likes to play piano and guitar.