Proprietary softwares are licensed and in order to control and document how these software products should run and to ensure compliance with software licences, these software licence management tools are used. This agreement is also known as End-User Licence Agreement, or EULA.
Software licence management is the process that makes sure that users are bind to a legal agreement towards the usage of the software. Certain tools are used by organisation which are used to monitor, regulate and document the products and softwares. These software management tools ensures prevention of software being pirated and copied by non licensed users. It is very essential to use software license management tool to avoid counterfeiting and piracy of softwares.
How much costs a company incur while making these software?
1000s of heavily paid R&D resources, super efficient algorithms and servers and years spent in building the capability are some of the metrics to estimate the cost of these softwares. In brief, it takes a fortune to build these softwares and tools.
Piracy and Non-Compliance
These days piracy and non-compliance to agreement and licences are rising across world and as of 2018 it is a big challenge for software makers and vendors to stop the piracy. Huge chunk of revenue is lost because of software piracy and cracks/patches that are available on torrent sites. For example, rarely we see people using original Microsoft windows on their laptops and go for pirated and cracked version of windows. This stealing and copying results in huge revenue loss for the manufacture companies. Various vendors like Adobe have moved to subscription based models and have saved a lot on revenue loss.
Now a days, vendors and manufacturers are very aggressive on stopping this revenue leakage by auditing company’s who are doubtful of using their softwares and tools without any permission and encouraging piracy. Companies like Microsoft, Autodesk, Oracle, SAP, Adobe and many more are religiously auditing doubtful clients and have a specific revenue leakage prevention team to go legal against clients using their tools without any compliance. We have seen various cases where hefty fines and legal fees has been raised on non-compliant companies by these vendors. Various publishers have started taking strong counter measures for counterfeiting which will definitely lead to increase in revenue from their licensed products.
There are various software licence management tools that helps vendors protecting against software counterfeiting and piracy. Some of the best licence management tools are:
Manage Engine Desktop Central:
This is a web based windows desktop management tool that can manage 1000s of desktops from centralised location. This can be used in LAN and WAN both.
Reprise Licence Manager:
They offer software toolkit which allows software publishers and vendors to protect, licence, and activate their products for sale.
Flexera helps in reducing ongoing costs, maintaining software compliance. They are global leaders in asset management and licensing.
They have integrated multi-program licence management & inventory products which helps organisations to optimise their assets and availability.
Do we own the software once we have paid for its licence?
This has been a question of debate for long where clients had a doubt that do they own the software once they have purchased the licence and have signed an agreement with the vendor. This is straight No! You have only purchased the rights to use that software not the actual rights of ownership for the software application or tool. The EULA agreement binds both the parties and any diversion from the agreement in terms of counterfeiting and piracy can lead to legal actions.
Software licence management is a process that is opted by every paid software publisher and manufacturers to avoid piracy and counterfeiting of the software. It is essential to avoid revenue loss and keeps a brand having more and more loyal customers.