Another year rolls by, and yet another study from
IDC and the
Business
Software Alliance (BSA) about
software
piracy is making the headlines.
I've been covering these surveys since they started, and over the years I've
become more and more sceptical about the results. While there is some useful
data in the latest report, the methodology and some of the conclusions are, in
my opinion, open to question.
My school history teacher used to give sage advice to his students when
reading any historical document, and it's advice I still follow today.
"Before reading anything consider three questions," he would say. "Ask
yourself who is writing this material, why are they writing it and who is paying
for it."
Applying this leads to some interesting conclusions. The author of the report
is the highly reputable analyst firm IDC. But the way that the report was
compiled causes me concern, not least for the low number of actual respondents
at just over 6,000 for a worldwide survey.
But of more concern is the methodology IDC uses. Roughly speaking the firm
takes an estimate of the amount of computers shipped to individual companies,
takes a further estimate of what software should be on those machines, and
compares that, not to exact software sales, but to interviews with software
vendors.
This research method has been questioned by many people, including such
august organisations as The Economist magazine in its article
BSA
or BS?.
"The association's figures rely on sample data that may not be representative
, assumptions about the average amount of software on PCs and, for some
countries, guesses rather than hard data," the article reads.
"Moreover, the figures are presented in an exaggerated way by the BSA and
IDC, a research firm that conducts the study. They dubiously presume that each
piece of software pirated equals a direct loss of revenue to software firms."
That last sentence is particularly telling. If you're a computer user in
China and a legitimate copy of Windows costs around a month's salary (which used
to be the case) it's understandable to see why piracy is so popular. But if the
pirated version wasn't available would you still buy Windows, or go to an open
source alternative, or just abstain from buying the computer?
Similarly, if someone in a business in the US wants to use Photoshop once or
twice a year and uses a pirated version, does it mean that they'd buy a
legitimate version if they couldn't pirate the code? It seems more likely that
they would simply farm the work out to someone else.
The second question as to why the report is written is fairly simple: the
commercial IT industry needs data to press its case for tighter laws on software
licensing and piracy, and surveys like this look impressive and can be used to
brief journalists and governments.
Don't get me wrong: piracy is a serious issue for some parts of the industry.
Commercial software companies depend on people buying their code, as opposed to
open source companies that make the bulk of their profits from services.
Smaller vendors and developers can be crippled by piracy, but I see precious
few of those in the list of the BSA's funding group compared to larger companies
like Microsoft and Apple, both of which are flush with billions in cash
reserves.
Stealing software is little different from any kind of theft, except that
it's easier and doesn't require shoplifting things personally. In the past this
has led to courts being fairly lenient on those caught, something that drives
the IT sellers up the wall, thus the need for such surveys.
Do you agree?
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