Kieran Cooper looks at the complexities of software licensing.
Of all the IT issues I?ve written about in this column, the subject of how organisations pay for the computer software they use must be one of those most likely to make people?s eyes glaze over. Aside from the fear factor (given that there are more than a few organisations that know they probably haven?t paid for everything they use), the whole issue is incredibly complex and it?s no surprise that it often ends up in the ?too hard? pile. However, it is a vital part of the IT jigsaw and, as with so many of the ?too hard? issues, the organisation that overlooks licensing does so at its peril.
The fundamental difference when anyone buys software as opposed to say, hardware or stationery, is that what you are getting is a licence to run or access a program that will set out how that software can be used. For example, you may be bound to pay for support for as long as you want to use the software, or you may be forbidden to transfer the software to someone else. Once you start using a program, you are bound by the agreement that comes with it ? and this applies for as long as you keep the software installed.
All software comes with some kind of licence ? it often comes up on screen towards the beginning of the installation, and often it will also be supplied in a printed form. Complex software such as ticketing systems will have particularly detailed licence agreements but in all cases, by signing the document, or pressing a button that says ?Agree? you are committing yourself to the contract and the conditions that the licence sets out. It?s not all one-sided though: having a valid licence will often allow you access to ongoing support and free upgrades, which can save you money in the long term.
There have been so many developments in the way organisations pay for software, that it can be quite confusing. The simplest scenario is when you buy a box that includes a CD, which you then install onto a computer. Often called ?packaged product?, this is the sort of thing that you might find on the shelves of a computer shop, or buy by mail order. Indeed, software that is downloaded from the Internet generally fits into this category. The licence will more than likely state that you can install it on a single machine and you would be breaking the contract if you were to use the CD on more than one computer.
Often, (particularly in the case of Microsoft products) this will be the most expensive way to buy software ? especially if you need multiple copies. Most software suppliers offer discount deals where you can use the same CD to install the program, but buy licences to cover the number of different computers on which you want to use it. This can reduce the price significantly over the packaged product, even if you only need two copies. Microsoft also offers a scheme where you can pay for software in instalments and qualify for discounts.
While for some software (such as operating systems like Windows) there is a clear one-to-one relationship between each licence and each particular computer on which the software runs, there are other programs that organisations may want a number of staff to be able to use without having to pay for everyone to do so. These systems therefore have an access licence ? you pay for a certain number of people to be able to use the program simultaneously, but you can spread these around so that when someone closes the software then someone else can access it. This is a very common scenario with ticketing systems, but it also applies to things like server operating systems or network databases. So, for example, to run Microsoft SQL Server you need to pay for the number of people who may need to access that concurrently.
More and more software these days includes technology to make users stick to the licence agreement. For example, Microsoft Office now requires the user to get an activation code over the Internet when they install the software, and this prevents the same CD being used on more than one computer. The use of this kind of system is likely to increase over time as more software suppliers find ways to limit the illegal use of their programs.
In addition to the various discount plans that software suppliers such as Microsoft offer, there is a scheme run by the National Council for Voluntary Organisations that allows charities (or other bodies which have charitable aims) to purchase software at significantly reduced prices. There are more details on the NCVO website (www.ncvo-vol.org.uk) and similar benefits apply for the SCVO in Scotland. This may not be enough to change the eye-glazing nature of the subject, but the discounts certainly make it much easier for charitable arts organisations to keep within the law.
Kieran Cooper is a Director of the arts management consultancy Catalyst Arts.
t: 01223 460 818; e: kieran@catalystarts.com; w: http://www.catalystarts.com