Every organization runs serious risks when it fails to pay close attention to internal software management.

Consider this startling statistic: More than 36 per cent of Canadian organizations are guilty of software piracy, i.e. using software that is not properly licensed or not licensed at all.

Your company may be among them, whether you know it or not. If so, you're playing a dangerous game. And the stakes are high.

More alarming still, the vast majority of senior decision-makers have no idea that non-compliance is a legal offence that can lead to severe penalties.

Diana Piquette, Microsoft Canada anti-piracy manager, says non-compliance is bad business.

"More than 70 per cent of businesses are unaware of the harsh legal penalties for non-compliance," confirms Diana Piquette, anti-piracy manager for Microsoft Canada. "Even more surprising, fewer than 50 per cent of companies conduct routine software audits to evaluate their licencing position."

That's not only risky business, it's bad business.

Bottom line solution: Ethical organizations that are unsure where they stand should ask Microsoft how to help them implement a Software Asset Management (SAM) program. Now.

Why?

* Because pirated software hurts the Canadian economy to the tune of $1.1 billion in lost retail sales each year. Such financial suffering is shared by the entire IT sector, including resellers and service providers.

* Because the use of unlicensed software is illegal. Watchdog groups such as the industry-backed Canadian Alliance Against Software Theft (CAAST) are committed to the enforcement of existing copyright laws, as well as educating Canadians about the perils of software misuse.

And now for the GOOD news ...

Organizations that introduce Software Asset Management programs often find to their delight they can reduce their overall software costs by as much as 20 per cent.

"Customers discover that while they are under-licensed in some products, they're also over-licensed in others," concurs Piquette.

"Cost savings come with increased efficiency. You may find you're paying licensing fees for software that isn't being used. Or that's being deployed for the use of employees who have no need for it," she continues.

It's all about properly managing your software. As Piquette points out, your corporate software is your corporate lifeline.

And don't forget the security issue.

"A lot of people don't realize they can't have true security without proper management of their software assets. We recommend you look at your security and your compliance at the same time," Piquette adds.

"They go hand in hand. If you don't know whether or not you're compliant, you're likely running a security risk as well."

With SAM in place, software systems are centralized and standardized. No rogue applications, no inefficient programs, no unlicensed products your employees may have brought to the office without official sanction.

Instead, you're running an efficient, cost-effective and ETHICAL business.

Piquette underscores another key fact: It comes as a sizable shock for most decision-makers when they're made aware that their organizations may not be in full compliance. "If you find yourself in this position, you're not alone," she confides with an understanding smile.

"Most people have absolutely no intention of getting into this position. They just find themselves there because they haven't been paying close attention to this vital component of their organization."

As businesses grow, and perhaps expand to new offices and new cities, software efficiency and compliancy issues can get shunted to the back burner.

Maybe new branch offices take it upon themselves to purchase their own software. New employees may even unknowingly add non-compliant software programs and begin sharing it around the office.

"Then, one day, CAAST comes knocking on their door," Piquette cites the worst-case scenario.

Or perhaps the company hires a new Chief Information Officer and he decides to evaluate software assets.

After a thorough investigation, the CIO discovers that things have degenerated into quite a mess.

Nobody has kept records of which software has been acquired or deployed. Nobody seems quite sure which versions they're using.

Once the analysis is complete, however, the healing can begin.

Systems are purged of unwanted, inefficient, unlicensed software. It's now time to go to your software publisher or vendor. Many offer volume licensing discounts, which can work wonders for your bottom line.

You protect yourself by defining procedures that forbid the use of external or illegally downloaded software; by creating company-wide policies that regulate software use; and by taking a software inventory on a regular basis.

"You'll find that your new processes will make the company more efficient," concludes Piquette. "Even better, they're going to remove the risks while saving you money."

Microsoft can help you learn more about implementing SAM within your organization. Start by visiting these Microsoft websites: www.microsoft.com/resources/sam or www.microsoft.com/partner.