Be legal and cut clutter with software licenses

It may be tempting to simply make more copies of the software you use most -- here's why you shouldn't.

It would be easy enough to load that same program onto another computer -- but it's also illegal.

But paying for, storing, and keeping track of multiple copies of software can be a costly proposition for any small business. If you haven't considered it before, it may be time to look into software licensing.

With open licensing, you can obtain just one copy of the software and then order four licenses, enabling you to load that same copy onto five computers.

Licensing simplifies software acquisition. Take, for example, a situation where you need to set up five new computers with software. If you had an open license, you would just contact your original software reseller and sign up for five more licenses, then take the master CD and load it up on the five computers. While the software itself is not usually delivered electronically, the licensing agreements -- stipulating the scope of the license -- are often sent via email for quick turnaround.

Going the "individual copy" route, you would first have to buy five copies either online or at your local computer superstore and then install them once you received the boxes.

Licensing also simplifies maintenance. Keeping track of which computer holds which license is much easier when you work from a master document. Otherwise, you're faced with the prospect of having to collect the license agreements from each individual copy and tracking which computer is loaded with which license -- and storing all those boxes and manuals.

Finally, in addition to freeing up space on your office shelves, licensed software is cheaper. Open licensing prices can be 20 to 30 percent lower than retail pricing. For instance, those five copies of MS Office would cost $2,495 at a retailer, while Microsoft's Open License program offers them for just $1,940, or about $100 less per license. Pricing gets even better as your order grows larger.

You can buy licenses both on- and offline through software resellers, but visit the manufacturer's web site for pertinent details on their licensing programs.

Although every software provider may offer licensing programs, the terms can vary greatly from one company to the next. Minimum quantities can also vary-most manufacturers range from a five- to 25- or 50-seat minimum. (Microsoft, probably your biggest source of software, starts volume licensing at a minimum of five seats.) Also, depending on your needs, you can purchase licenses that allow you to upgrade from older software to the latest version of a program.

Volume licensing will probably become more common as software is increasingly being sold as a download from an online retailer, instead of in a package at your local retail outlet. Instead of downloading a copy onto every machine that needs a program, you will be able to download a master version onto a network server, which can then be accessed by the agreed-upon number of seats in the license. Talk about paperless -- not a box or CD to be found anywhere.

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