Software Audits: How High-Tech Software Vendors Play Hardball (infoworld.com)
snydeq writes: InfoWorld's Dan Tynan offers an inside look at how high-tech software vendors such as Adobe, Oracle, and IBM play hardball over software licensing, pushing customers to "true up" to the tune of billions of dollars per year -- and using the threat of audits as a sales tool to close lucrative deals. "When it comes to software audits, the code of omerta prevails," Tynan writes. "It's not a question of whether your organizations' software licenses will get audited. It's only a question of when, how often, and how painful the audits will be. The shakedown is such a sure thing that nearly every customer we contacted asked us to keep their names out of this story, lest it make their employers a target for future audits."
several times as many CALs as have employees, we're moving what we can to Linux.
The only audits of open source software are to remove bugs. Ditch proprietary software and this isn't an issue.
This is why I only use FLOSS software in my business, and why I don't care which Free/Libre/Open license it is.
Freedom means some external entity can't interfere or try to pull the rug out. I have what I have, I know what it is, and nothing will change unless I accept change.
Software is immensely expensive to create. The bigger, real world systems actually in use cost a fortune in real money to create because the bigger and more complex they get, the more people are needed to try to increase productivity by increasingly small percentages.
The money has to come from somewhere. If companies can't pay their programmers, the software stops being made. The open source model is an alternative in SOME cases - but not all.
Software is pathetically easy to steal. Somehow the companies making the software need to get paid. Going after individual thieves is a waste of time, but targeting corporations with deep pockets makes perfect sense.
Sue Joe Smoe for ripping off Microsoft Office, and you won't recover enough to pay your lawyers and the fees to file the lawsuit. Sue Exxon because they paid for 1000 copies of Office but used 10,000, and they will be able to pay any court judgement. You can ask the courts for your legal fees, the cost of the software they stole, and compensation for your trouble.
Not see what is unfair or unjust about this. The "hardball" tactic described here is to find companies that are stealing software, and offer them this "true up" deal. This is just a pre-lawsuit bargain - they pay a lot less than they would pay if there were a court judgement, you get your money now. Sounds fair and reasonable to me.
If companies don't want to face this risk, they can use open source software. Oh, it costs them more to have an in house programmer staff to customize the software for their needs? (since open source stuff tends to be a bit rough around the edges) Then pay the damn commercial license fees, and buy a few more than you need just to be on the safe side.
The only audit I ever ran into came from Adobe, and it was for some product that I had signed off on the requisition for someone who ended up never using it anyway, but it was still my job to track down the original P.O. Not a huge deal, but it was a waste of a few hours along with accompanying anxiety. My solution to prevent a recurrence in the future: I will never approve a requisition for any product from Adobe ever again.
VMware has a software audit clause in all their license agreements, all the way down to the VMware Player.
Don't use VMware; It's just not worth it.
"Screw Sun, cross-platform will never work. Let's move on and steal the Java language." - Visual J++ Product Manager
Ernie Ball
I did some work for a local government and Microsoft went back and forth with me on licensing. They wanted photos of all 75 computers product keys to prove they had OEM licenses for Win 7 Pro. Those that didnt have were covered by about 30 Windows 8 licenses I purchased with downgrade rights (Same price as Windows 7 and we dont use Windows 8). It went back and forth about 4-5 times and he really haggled over the most minute workstation licenses. I had sent proof on multiple occasions and they couldnt even verify my windows workstation licenses from a large reseller (I think Compugen). I eventually told the Microsoft licensing rep to stop bothering me and send me the finalized audit that showed i had valid licenses or go away. That was in 2013 I believe. We get them every 5 years. Also, online activation compared to licensing can lead to audits on corporate keys.
Because if you actually pay for the licenses that the people who create the software you want say you need to buy if you want to use the things they've created, it's a non-issue. How is it a "shakedown" to require people who want your product to act according to the agreement required before they can use it? Is it a "shakedown" when you order three sandwiches and the chef asks you to actually pay for all three, instead of one? If you work 40 hours and expect your employer to pay for all of those hours, per your contract, is that you "shaking down" the employer?
If someone wants to show examples of (for example, Adobe) forcing a customer to pay for licenses to which they did not agree to purchase, representing seats they're not using, that's another matter. So let's see one of those (verified) stories, instead of characterizing the expectation that people honor their contracts as a shakedown.
Don't disappoint your bird dog. Go to the range.
In my distant past I was the guy who would made Oracle things happen for clients. But as I got more and more into dealing with clients I realized that Oracle is just a mean thing to do to people. One interesting part of the Oracle sales process seems to be to delay giving a final price. This way the project is well underway or even done before you present the client with some sticker-shock.
Then there were the prices themselves. I deployed quite a number of systems and could never predict the price. Would it be $30,000 or $300,000.
Then there were the end runs. Once Oracle got ahold of your client they were perfectly happy to see you swapped out and replaced with another consultancy who would slather the entire client with Oracle products. It was bordering on Oracle Doorbell for all your ding-dong needs.
There is no way I would ever use a solution that results in a company like that able to mess with my clients. No Microsoft, no Oracle, no IBM, or SAP.
My favourite is when I have a client who is in the process of throwing them out and they ask, "What will it cost to licence MariaDB." Then when they ask, "Can it handle our Enterprise database?" I will say, "Your $400,000 system has 40,000 rows of data in it. A $25 raspberry Pi could handle your needs." Then they ask about per seat licensing costs. "None." At this point I can see them fishing around in their heads for how they are going to be screwed; suddenly it dawns on them that the screwing is now over. They then go through a list of features that they have built up over time but couldn't afford. When they get the quote for those they pretty much throw up in disgust at how badly they had been treated over the years.
When they put it all together they realise that their previous consultant hadn't been working for them but effectively for a company like Oracle.
It has been over a decade since I dumped everything Oracle and will never go back.
I loved how they put into writing that we could run their shite DB on VMware with our existing licensing.
Then they do this 'audit' bullshit, and hit us up for another 2 million, lol the 2 million that was the discount to make the sale. And why does Oracle feel we cheated them out of 2 million? Yeah, us running it virtually.
Fuck Oracle.
An attorney told me that those audit clauses in contracts are effectively unenforceable and you should just refuse to let them audit you.
Boxed software licensing stupidity pushed us into the cloud.
We are a private school, and we got tired of constantly tracking our licensing status. Do we have enough AV seats? Do we have enough Exchange and SQL cals?
Enough is enough.
We put our staff on Mac OS and we put the kids on Chromebooks and Google Apps. Our experience with Microsoft's crazy licensing schemes was one of the reasons we didn't even consider their "cloud" solutions. Yes, an E1 Office 365 is free for schools, but Google Apps and Chromebooks are dead simple and the staff and students really like them.
We kicked Adobe to the curb for the same reasons. The licensing and compliance costs, even for Edu, were absurd.
While much of the software used in my workplace has some very annoying licence management software to punish the honest, it at least does not trap people by letting them go into non-compliance so the legal vultures can come in and feast.
If your software allows 835 seats when you are only allowed 800 it's either a deliberate trap or incompetence on the part of the vendor or whoever they have bought their licence management software from.
If seat 801 can start up then someone on the vendor side has fucked up, or it's a trap.
The examples where you really need special software are rare; they certainly don't include EDA or CAD.
The people I talk to online tell me KiCad is crap compared to even Eagle.
Getting sued for starting up seat 801 and violating the licence can do a lot more than temporarily "bring operations down" - and if not starting up seat 801 can even temporarily "bring operations down" or come remotely close to it then there is a long chain of serious fuckups leading to that point.
I'm not a fan of restrictive commercial software but I don't see a circumstance where your excuse would hold water with the vendor. If you haven't paid for it and the condition for using it is paying for it - then don't use it!
Plus there are usually workarounds. If user 801 needs it then it's likely that one of the 800 isn't even on premises let alone using the software so their copy of that application can be closed for how ever many hours, or maybe a day (vendors usually make it very convenient when they want you to give them money so it never takes long) that it takes to get extra licences.
The "we needed to use software we were not licenced to use for business critical reasons" excuse would get laughed out of court and cost quite a few dollars as extra punishment.
Could the software vendor just lock down the features you didn't pay for? Sure, but then they wouldn't get to sue your ass off when they discover you've been using a feature you didn't pay for.
Intentionally delaying legal action is called "laches" and can limit the damages that a plaintiff can collect.
When I first saw the title of this article, I thought it might be about software vendors auditing their software for bugs and deficiencies. Silly me! Of course, bugs and deficiencies don't matter - the legal small print has all that covered. No liability, whatever happens.
No, the software audits are all about customers paying full whack for every single copy of the software - whether it works or not.
I am sure that there are many other solipsists out there.
Slashdot: "Dan Tynan offers an inside look at how high-tech software vendors such as Adobe, Oracle, and IBM play hardball over software licensing"
Actual article: "The most frequent requests come from the usual suspects: Microsoft, Oracle, Adobe, IBM, and SAP."
If you assume that many organizations violate software licenses for a variety of reasons -- either outright dishonesty, poor record keeping or something else -- I wonder how often this gets used for workplace revenge by disgruntled employees?
I would expect the dishonest employer factor and the disgruntled employee factor to correlate pretty well.
Before commenting
We only used Adobe for photo editing and PDF software.
Our Chromebooks and Macs have native PDF capability and Gimp filled in as a photoshop replacement. Apple Photos also does some photo work for us.
Our websites are built with a number of cloud based tools - like Google sites.
There is no "drop-in" replacement for Adobe's entire suite that I am aware of, but there are many stand alone tools that can replace many of the pieces.
... when this came out. Coincidence? I think not.