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Licensed software delivers economic benefit

By , ITWeb
South Africa , 21 May 2013

Licensed software delivers economic benefit

Using licensed software would not only reduce risk and drive better economic value for South African enterprises but also boost the country's economy, according to the Business Software Alliance (BSA).

A study conducted by the BSA, a trade body that represents the interests of the software industry, and business school INSEAD found that increasing the use of licensed software by 1% would generate an estimated R2 billion in national production, compared to almost R1 billion from a similar increase in pirated software.

This means properly licensed software could deliver almost R1 billion in additional economic value, the study revealed.

The study dubbed Competitive Advantage: The Economic Impact of Properly Licensed Software analysed data drawn from 95 countries to demonstrate the benefits to national economies of using fully licensed software.

According to the study, increased use of licensed software corresponds to substantial positive gains in gross domestic product (GDP).

“This study confirms that licensed software is not just good for firms - it is an important driver of national economic growth," said Marius Haman, chairman of the BSA South Africa committee.

"Government, law enforcement, and industry in South Africa should take every opportunity to reap these potential gains by reducing piracy and promoting use of properly licensed software," he added.

The study also found that on a dollar-for-dollar basis the return on investment from using properly licensed software is greatest in developing countries.

Earlier this year the BSA found that across Europe, Middle East and Africa (EMEA) region the use of pirated software cost businesses more than $16.5 million in 2012.

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