From the trenches: Be warned!

OPINION: Hard disk loading of unlicensed software in Australia is a major problem, and quite obviously, Microsoft wants to make an example of resellers that are allegedly doing the wrong thing.
 
I find it extremely difficult to understand why certain resellers are still selling hard-loading unlicensed copies of software on PCs and selling those boxes to consumers.
 
Despite high piracy rates around the globe and here in Australia, software companies still make big profits, but ultimately it is the poor consumer that loses when they buy an inferior product.
 
Resellers know very well that by loading unlicensed software they are doing the wrong thing, yet we are still seeing so many cases where they are breaking copyright laws.
 
In the case of Magic Computers, the company admitted what it was doing was wrong and said it ‘wouldn’t happen again’. Yet they kept doing it, according to Microsoft’s corporate lawyer Vanessa Hutley.
 
Microsoft’s aggressive stance on software piracy and the stance taken by many other software vendors serves as a warning to resellers that are engaging in this practice. Times are quite tough in the channel but there is no need for this sort of behaviour.
 
The reputation of our channel is at stake and if it continues, consumers will stop relying on resellers to provide them with IT, fearing that they’re not getting what they paid for.
 
Piracy numbers in this country are staggering. Piracy of packaged software in Australia had grown to US$409 million in 2004, up from US$341 million a year earlier. Less fortunate countries in this region have massive piracy rates. For instance Vietnam’s rate is 92 percent.
 
That’s understandable, given that the majority of people in these countries cannot afford to buy computer software. What’s particularly worrying is that Australia has a piracy rate of 32 percent, admittedly it’s probably the consumers that are doing most of the unlicensed copying, not the resellers. However, it has to be stopped.


Discount wars
 
Nortel comes under the spotlight this week for engaging in deal discounting, one of my pet peeves! As an industry, why do we shoot ourselves in the foot this way?
 
Vendors and channel partners admit they don’t like to discount -- who does? All you are doing is cutting into your margin in order to win the business.
 
This is the problem with our industry. We go on about how price is not the only answer and customers will pay extra for service/ support and piece of mind, yet price wars are the order of the day.
 
Price is important to enterprise customers but the industry needs to do a better job of convincing its customers to pay for value-added services.
 
I understand that sometimes, however, you have no choice. Email me your thoughts on the issue.

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