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The value of licensed software

According to a Business Software Alliance (BSA) survey, companies that implement strong measures to improve the way they manage their software have a powerful new tool for reducing security risks, increasing profits, decreasing downtime, and expanding opportunity.

You might feel like you don’t want to renew your software licenses because the programmes are still attending to all your needs, or perhaps you are considering using pirated versions of the software. Well, stop right there. There are a host of reasons why that isn’t a good idea.

Let’s look at a few of them.

Unlicensed Software

Unlicensed software accounted for 37% of software installed on personal computers in 2018. According to the BSA, software companies lose approximately $46 billion each year because of unlicensed software. When you signed up for the software programme you agreed to its licence agreement, a legally binding contract between the end user (you) and the owner of the software. You agreed to certain terms, such as how long you could use the software for, how the software would be used in your company, and how many users there would be, as well as agreeing to restrictions on any manipulation and duplication of the software.

You have violated the terms of the license agreement by using unlicensed software, which is a violation of software copyright law. Companies and individuals may face financial penalties, and if they have committed a crime, they may face jail time. If a software company decides to sue, the company’s manager or director may be held personally liable.

The license agreement for software works in your favour. If the software fails to live up to its end of the bargain in terms of performance, maintenance, and support, you have someone to talk to about it.

Outdated Software

Software programmes are updated on a regular basis with new and improved features as well as speed improvements to improve the end-user experience. You can benefit from these regular updates and stay on top of industry trends and technological advances by keeping your software licenses up to date.

Due to a lack of updates or authenticity checks, unlicensed software may experience frequent programme failure or unexplained crashes. Because unlicensed or pirated software cannot connect to the internet to check for security patches and bug fixes, you are unable to resolve the issue.

With legally licensed software, you also have access to expert advice and solutions from the tech support team to address any concerns or questions you may have. This can result in better performance and service delivery.

You’re at an Increased Risk of Cyberattacks

Without regular updates, illegitimate software rapidly degrades in quality. Licensed software receives regular security patch updates to ensure it is protected against current cyberattack trends. By failing to install regular updates, you may end up exposing your computer and organisation to cyberattacks.

Pirated or illegal software is at an increased risk of cyberattacks. If you use pirated software, the source of your software may not be completely clean, and you risk infecting your computer with malware, or worse, introducing malware into your entire organisation’s system. This could result in computers not performing optimally or data loss. According to the BSA, organisations now have a one-in-three chance of encountering malware when obtaining or installing unlicensed software. Licensed software reduces the likelihood of cybersecurity incidents.

Your Functionality may be Reduced

Your unlicensed or outdated software may no longer be compatible as new upgrades and updates become available. By keeping your software programmes licensed and up to date, you ensure that the programmes on your computer are compatible with one another and with your hardware, allowing your organisation to run smoothly.

Unlicensed or pirated software doesn’t function optimally. It might work for a short while, but any updates you receive may render the programme unusable unless you make a purchase. For example, Microsoft Office may continue to work for a few days without activation, but thereafter most functions are disabled, and you aren’t able to edit your documents.


Do you have an expired MS licence? Call us. The team at Radical Cloud Solutions are passionate about what they do and are dedicated to getting you set up on the right software to improve the day-to-day running of your business.