Piracy and the Investment Cost for a starting company

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Introduction Whether we like it or not, we are in an era where a company cannot function without an Information System. Regardless the size, a starting company has to evaluate how much will it invest on Information technologies. Different factors modify this budget, among the most important are: size of the business, the industry the business is in, the knowledge on IT of the employees, and of course the price and availability of the software needed. The main focus of this paper will be the availability of software. Price is definitely a factor that can make software more or less available, but it is not the only one. Another factor is the easiness of getting the same software on an alternative source, I am talking about piracy. Discussion We cannot talk about Software Piracy until we define exactly what it is. It refers to the illegal use of software by end users. There are many ways in which an end user could get access to the software. With websites like http://thepiratebay.se/, almost everything is available for free. For Software producers this is really a problem because they admit they are losing nearly 50% of potential revenues due to piracy. Approximately 58% of users in the Middle East and Africa region are running pirated software. (Barojos, 2013) With numbers like these, is easy to see why Software producers are worry about piracy. But let’s focus a little more in what drives these users to acquire pirated software. If we analyze things a little further, the number one issue isn’t piracy. It is how software producers package (distribution channels) and license their products (economic revenue). Is too hard to fight against pirated software and at the same time focus on develop your product. Instead of focusing on ways ... ... middle of paper ... ...of a startup business is to cut the cost as much as it can. Piracy, although illegal in most countries, is a common practice among small business. Surely they do not intent to do something illegal, but high cost drives them to get this “solution”. My objective was to prove that developers can change the situation about piracy and make a better environment of technological solutions for final users, and still, make profit. Works Cited Barojos, M. (13 de June de 2013). ITP.net. Recuperado el 21 de January de 2014, de http://www.itp.net/593697-software-producers-need-more-flexibility?tab=article&page=2#.Ut85mfuFDIV Ernan, H., Vijay, M., & Ashutosh, P. (2004). The Effect of Piracy on the Market Penetration of Subscription Software. The Journal of Business, S81-S107. Gallaugher, J. (2013). Information Systems: A Manager’s Guide to Harnessing Technology - Version 2.0.

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