Companies should take urgent and direct action to ensure that they do not break the law by under-licensing their software, or conversely lose money by acquiring too much, IT services specialist Sx3 has warned.

The latest BSA and FAST statistics estimate that around one quarter of all software in the UK is licensed illegally. Sx3 has responded by launching a five-step service to help clients save money and stay inside the law.

"Directors are often unaware of their software licensing status. However the law does not recognise ignorance as an excuse for non-compliance," said Gary Paterson, business solutions consultant at Sx3. "Having good contingency plans in place is simple and may even make savings in the long run. Overlooking the issue can be costly - the BSA has already prosecuted 9000 European companies."

Sx3's Software Asset Management (SAM) service aims to ensure that companies are properly and legally resourced by following five steps: an audit to create a gap analysis on how usage compares with licensing purchase; recommending the most effective route to compliance; producing a company specific IT policy document; designing and implementing effective security policies; and implementing procedures to ensure future efficiency.

Sx3 say that the correct policy should give a good return on investment as companies could re-distribute licences already acquired and avoid unnecessary purchases.

SAM also encourages companies to centralise licensing procurement and benefit from volume licence savings.

According to Sx3, job satisfaction can also increase because information provided by SAM can help managers more easily justify licensing the software they need to do their jobs, thus improving productivity: "With a full knowledge of the current licensing and a more focused software budget comes the chance to more rationally distribute funds".

(SP)