Software Asset Management Offers an Easy System for Rounding Up Improperly Licensed Software and Generating Cost Savings

SBA and BSA Release Best Practices to Educate Small Businesses

Washington, DC - July 30, 2007

The U.S. Small Business Administration (SBA) and the Business Software Alliance (BSA), today distributed “Software Strategies for Small Businesses: Best Practices for Software Compliance” to over 100,000 small businesses through SBA’s extensive network of field offices and resource partners across the country. This guide encourages small businesses to incorporate responsible software management strategies into their business plan, thus maximizing their software assets and streamlining their Information Technology (IT) resources.

In the fast-paced, highly-competitive environment of small businesses, every decision counts. Concerns about improperly licensed or outdated software generally are not a priority until there is already a problem. The clean-up to rectify the various issues associated with use of unlicensed software is then time-consuming and ultimately more expensive than if a business had become compliant in the first place. Likewise, many businesses see software as an expense rather than an asset that can greatly impact their bottom line. Through the partnership with the SBA, BSA is encouraging businesses to consider the benefits of implementing a Software Asset Management (SAM) program as a priority rather than an afterthought.

Preliminary SAM programs are simple to implement and can save businesses money, enabling them to better plan for software purchases and negotiate lower prices with vendors. Small businesses that perform a software audit as part of their SAM program can identify ways to cut costs on software expenditures and allocate those resources elsewhere. In addition, businesses that have proper licenses for its software are eligible for tax benefits associated with software depreciation. For these reasons, the SBA and BSA are reaching out to small businesses to educate them about the benefits of maintaining proper software inventories.

One of the immediate returns on implementing SAM can be a cost savings when businesses negotiate to buy new software with vendors through a choice of licensing models,” said Robert Holleyman, president and CEO of BSA. “A proper program will enable a business owner to identify actual needs and therefore better plan for software purchases and allocate IT resources more efficiently.”

The guide includes strategies for:

  • Establishing a formal software policy statement
  • Centralizing the SAM process by empowering an individual or team to implement
    the software policy
  • Proper purchasing procedures
  • Engaging in “self-help” through asset audits

“The ‘Best Practices’ guide will help companies take the first key steps toward implementing a SAM program,” continued Holleyman. “We hope small businesses invest in a sound program that will not only insure proper licensing and help protect their organization from legal liability and financial risk, but will also help a business optimize its software asset investment.”

According to the BSA, small business owners paid over $11.4 million in fines to settle software copyright infringement claims in 2006 alone. In the United States, small businesses face the greatest risk for software piracy due to their lack of established software management practices*. In addition, small businesses are less likely to recognize the benefits that SAM can provide. The guide will help small businesses avoid software pitfalls so management can concentrate on growing the business. The SBA and BSA Best Practices guide can be found online at www.SmartAboutSoftware.org.

* “Software Management Survey,” conducted by Yankelovich Partners for the Business Software Alliance

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About BSA

The Business Software Alliance (www.bsa.org) is the foremost organization dedicated to promoting a safe and legal digital world. BSA is the voice of the world's commercial software industry and its hardware partners before governments and in the international marketplace. Its members represent one of the fastest growing industries in the world. BSA programs foster technology innovation through education and policy initiatives that promote copyright protection, cyber security, trade and e-commerce. BSA members include Adobe, Apple, Autodesk, Avid, Bentley Systems, Borland, CNC Software/Mastercam, McAfee, Microsoft, Monotype Imaging, PTC, SolidWorks, Sybase, Symantec, The MathWorks, and UGS.

Contact Information

Janice Laurente
(202) 715-1540
janice.laurente@dittus.com