Thursday, September 23, 2010

As a company director, how do I protect myself from employees who want to collect $20,000 rewards for my software piracy?

This week’s question came up in response to this article, about dobbing in your company for software fraud. It’s a tough call when staff can install programs and the company owners become liable.

Before you dismiss this threat, ask yourself this question: Do all of my staff love me, even the ones who left over the last few months?

There are, of course, arguments for using free open source applications to avoid licensing costs. But, there are downsides to those solutions in terms of needing to train staff on unfamiliar applications and spending time fudging processes to replicate the functions in more expensive software. This is not an argument I like to get into, as there are multiple arguments in either direction for every tool we might choose to use. At the end of the day, there is always some tool a business should use to improve productivity that isn’t free. And so my following comments are important to note...

In small to medium businesses, I’ve seen that the worst culprit of fraudulent software installation is often the in-house IT guy who wants to get the work done, but doesn’t want to ask the boss for more dollars. So, trying to be helpful, he grabs an illegal copy of that software the worker needs and sets it up for them.

I have also seen staff brining software from home and installing it themselves so they can do the work they need to do without delays. Without stringent IT security measures in place, this can happen all too easily. Often this software is still in place long after the offending staff have moved on.

This is just another reason why, as a business owner or company director, you should consider getting a reputable firm to do a software audit of your systems to make sure you’re compliant. If you then have your systems monitored and managed by an external source, you can be alerted to the installation of any new software and check whether or not it is legal.

Today’s management tools are designed to keep a watchful eye over your systems to prevent issues such as license key duplications, or cracked license codes. They also monitor machine resources and security breaches.

I also suggest that while you’re having a licensing audit done, you also have a backup and recovery audit done to ensure your IT resources can really guarantee that you’ll recover from a data incident. Many IT guys in the small business world underestimate the importance of backup, and design minimalistic solutions that leave out the opportunity for a speedy recovery even if the data files are available.

Independent audits will cost you money to have done properly, but if you go to a reliable source you will learn something that gives you a great return on your investment. There is no such thing as a perfect IT solution in a small business environment as we just can’t afford to do it all. So, it’s always good to review and prioritise the shortcuts and the needs for expenditure.

If you run an audit and all you learn is that you’re happy with the compromises you’ve taken and the position you’re in, the peace of mind will have been worth the expense. This will allow you to stop worrying about the elephant in the corner, and get on with building your successful business. Without the risk of massive fines or employees getting the bonus they need to start a new life.

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David Markus is the founder of Combo - the IT services company that ensures IT is never an impediment to growth.

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