Software licencing policy crucial for SMEs

Going by the rising cases of security breaches and malicious virus attacks, it has become imperative for SMEs to be on the right side of IT-related laws and adopt suitable measures to guard their systems and applications. Besides deploying necessary software applications, opting for a suitable software licencing policy also becomes crucial as it gives an organisation not only the legal right to use the software but also takes care of vital factors such as upgrades or updates, software support and piracy control.

Benefits of software licence policy

A software licence policy is indispensable to all businesses, whether small or big. Lack of any form of software licencing policy can spell doom for an organisation, exposing them to legal and security hassles.

"Software licencing policy enables small businesses to cut down the risk of virus attacks and mitigate legal hazards, while also receiving regular upgrades and adequate technical support," said Dibakar Mohanty, an independent IT analyst in Guwahati.

However, despite being aware of the advantages of adopting a software licence policy, several SMEs relegate issues concerning software licence compliance to the back seat. Limited budget and lack of technical expertise also lead small businesses to ignore the importance of securing software licence policy. Non-compliance to software licence policy might prove to be expensive for SMEs as penalties for non-conformity can be quite severe.

"SME owners may be held personally liable for not conforming to software licence policy and may have to shell out a hefty amount as fine. Sometimes non-compliance may also involve confiscation of valuable assets, if administrators are found to work on unlicenced software on their network," said Neelanjan Pathak, proprietor of Neelhard Corporation, a small-sized IT firm in Kolkata.

Therefore, SMEs need to set up and clearly communicate software purchase and installation policies and effectively comply with the software licence policy.

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