There has been a lot of software innovation in the first 50 years of the computer industry. Software continues to transform our world. The CEOs of companies that are members of the Business Software Alliance (BSA) believe that 75 percent (or more) of the software innovations and benefits are still to come. Lack of skilled software engineers is one factor standing in the way of innovation. Another factor affecting a software company’s ability to innovate is the continuing problem of software piracy. BSA and IDC published a white paper, "Enabling Tomorrow’s Innovation" detailing opportunities and issues affecting future software innovation. Software piracy was one of the main issues noted in the paper.
As I visit and talk with developers, you ask me for new capabilities, more platform support, and better quality. I agree that we need to do more to help software engineers succeed. All work comes at a cost in time and resources. Some developers tell me that they are waiting to upgrade until their "feature" or "need". That is each developer’s choice. When I mention that we may not be able to afford to build that capability, I usually get the answer that goes something like "someone will pay for the current product so that you can afford to complete my request in a future version." That may be true for paying customers, but software piracy affects every software company’s ability to innovate and improve their products.
How does software piracy affect software companies? BSA in May 2007 published the fourth annual 2007 IDC and BSA global software global piracy study is available on the BSA site. Some of the key findings for 2006 Worldwide Software Piracy include:
Total software installed on computers: more than $100 billion
- Total software paid for: $65 billion
- Total packaged software loss: nearly $40 billion
- Global piracy rate: 35%
- Changes from 2005: Total losses up 15% to nearly $40 billion
Some developers might say that software companies (or companies in general) are too profitable and that we don’t put the profits back into the products and our community. I can say that, at CodeGear, we are investing our profits to grow our company, build better products, and to serve our customers.
What can you do to help reduce software piracy? Report software piracy. It’s easy to do, just go to the BSA report software piracy web page and follow the instructions. You can report piracy by an organization, a distributor, or on the Internet. You can also talk with your programming friends and co-workers about the importance of having legal versions of the sofware they are using. BSA also provides tools and resources so that you can do your own software audits to ensure you are compliant.
Stay compliant, stay up to date, and we will be able to do more for you.
{ 17 } Comments
Dear Mr. David,
I like you to know that I read you thoughts with a lot of respect every time.
About your post: The fact that you are in a LatinAmerican tour is certainly the reason of the post. And I swear I understand it: You see a lot of community commitment, a lot of potential customers (or their was already customers? where are the sales!!?) :O
The thing is that LatinAmerica is exactly that! A region with a huge potential. I am the only developer using Delphi (from 1200 to 3300 USD) in the company I work for, even if the CEO know about the power of your tools, the rest of the developers are using Java (supposed to be free) or legacy Visual FoxPro (800 USD at most) and every project is influenced by that fact.
Maybe in US this is not an issue right now, maybe in developed European countries this is not an issue, and I’m pretty sure this is no news for you, but our time and our minds are changing every day since a few years ago. I’m part of a new generation, and this is actually news: We are contributing to develop our countries full potential, and I hope CodeGear might understand what means to invest in it.
We are like a big bunch of microISVs: The factor of our growing will be the quality of our human resource (and we are working hard on this) and the change of our minds from micro-styled to enterprise-styled. We will search for more acce$$ible tools, better academic opportunities, all this in a frame of legality, wich means reducing piracy, but smarter, carefully taken decisions and commitments.
Here is the deal: If I (or almost everyone in my social-family-professional circle) were looking to fund my own company or microISV or any kind of small biz (small for now of course), even if I like Delphi a lot (And I mean A LOT) I have to decide between expend my whole capital in Delphi licenses or bring some Java (RoR maybe) books from Amazon and start over for some time. Why I should bother if Java is better accepted (more popular right now) and more -let say- enterprise.
For example, what do you think about supporting discounts trough software associations or technology commerce chambers (like AMITI, CANIETI, AMSIS etc. in Mexico) for companies and startups members?
Regards and congratulations for the tour (we miss you at Guadalajara’s Delphi revolution day). Give my compliments to Andreano too, please.
Problem:
$X of software paid for - easily established and verified
$Y1 of software not paid for…. we know this how?
$Y2 of software not paid for that would have been paid for if it couldn’t have been gotten for free…. we know this how?
Piracy "costs" $Y1 - $X or $Y2 - $X is nonesense - either answer contains an unknowable ($Y1/$Y2) therefore the answer itself is unknowable.
Before speaking of reducing software piracy, can CodeGear protect the rights of purchased customer? Can CodeGear?????????????????????????????? If not, why I have to buy them??????????????????????????
I had check lots of documents in the product, CodeGear’s web site. I can’t find any terms mention about the product I purchased just can be used in restricted area.
We went to work in China with our notebook and LEGAL CodeGear product. But we are asked a "Transfer Fee" here. They said our product was not purchased in China so that it is not legal software here. We has to purchase a new one to use it in China, or to pay "Transfer Fee" to make the product we purchased previously legal. The transfer fee is almost half of the price.
We ask others who are foreign developers in China, they know about this. And most of them paid this fee to prevent revenge.
Yes, I agree to reduce software piracy. But, can CodeGear stop such piracy in China? Or, please put words on product or web pages that purchased customer was restricted to use CodeGear products outside China if the products not pucharsed in China.
Sorry, I dare not put my real name here. I am afraid of being focused in China.
Thanks!
I think all right-minded developers and users agree that piracy of any kind of digital content is wrong either MP3’s or Delphi.
But I *do* agree with the previous poster - the cash equivalent of pirated software does not equal the amount of cash lost by software companies.
I left my previous company to work for myself. I was the only developer in that company and I could *easily* have kept using the Delphi 7 that was installed on my own PC knowing that they wouldn’t have any further use for it - instead I bought BDS 2006, out of my own pocket.
BUT, I did not buy a replacement for MS Office - I downloaded Open Office.
Thanks for your bloggings David,
Stuart
Yes, me agian.
No any response to my response, and then just remove my response.
What kinds of customers do you like? Give you response that hurt you but still be with you? Or not a word but just leaving?
From Turbo Pascal, I be with Borland/CodeGear products for almost 20 years. I pay hours everyweek to answer questions in some forums and forward Borland/CodeGear’s news to other friends and developers.
Yes, maybe CodeGear don’t need us anymore.
Frustrate……………………..
I can’t fight for Delphi in the project meeting because I can’t convince members how CodeGear can support or protect us, even convince myself anymore.
I hate to say this, but, "Goodbye, CodeGear".
"The CEOs of companies that are members of the Business Software Alliance (BSA) believe that 75 percent (or more) of the software innovations and benefits are still to come."
David, I have the greatest respect for you and always read your texts, but the above quote from the BSA seems just fluff. Unless backed by some sort of evidence, then it shouldn’t be given voice - it’s politician speak.
The reason I feel strongly about this coupled with the BSA is that I feel very strongly that software / music etc should be paid for, I feel that the BSA / Sony BMG’s of this world go about their business in a very strange and counter productive way. I have had first hand experience of the BSA and although the company I worked for was clearly in the wrong, the tactics used by the BSA *didn’t* leave me with BSA the modern Robin Hood.
Add to this the efforts that companies go to with registration and anti-copy techniques are *always* counter productive to legal users (unless you believe that the measures actually improve the paid for / not paid for balance). People who don’t care still get patches / downloads etc. Better invest the copy protect money in features / bug fixes and registered only content.
Hope to see you in the UK soon.
JAC.
I’d have to agree with Thomas. The mere mention of the BSA brings to mind horror stories of (metaphorically) jackbooted thugs intimidating companies (often small). Read http://www.news.com/2008-1082_3-5065859.html for an example.
I think that piracy is a problem for software producers, but the measures taken to try and force 100% compliance start to treat honest customers as potential thieves (or just thieves who haven’t been caught yet).
Aside from Delphi, the place I work is essentially an open-source shop. The freedom from hassles, of worrying about licensing when a computer dies or an intern comes in for a couple of months, more than make up for (usually slight) limitations.
Now, we do mostly web development, so Apache/MySQL/PHP and their brethren are pretty compelling. And I love Delphi, have been using it since the summer of ‘95. I don’t think that CodeGear’s challenges involve piracy nearly as much as making developers’ lives easier (recent documentation fiascos, etc.).
I think something that would help you no end would be ensuring prices are similiar across different markets. Here in the U.K Borland products tend to cost way more than in the U.S. and it isn’t just down to how taxes are applied. I do have a legal copy of BDS2006 and I bought the last version legally as well but I resented paying every penny over what it would have cost in the U.S. Whenever U.S. companies are pushed on this, the stock response is ‘there are differences between the U.S.’ and other markets. Like what? Shipping costs from the U.S. to UK are less than £10 and less than that in volume. We speak the same language so can use the same support services. The documentation doesn’t need to be translated. So why the price difference? treat the customer fairly and you’ll establish mutual respect.
Hello David
I agree with Salvador Gomez Retamoza, The bottom line is your products are too big, over-priced and even in places like Europe (Where I am) Delphi developers are in a minority. the marketing strategy that has been adopted in the last few years has messed up. The all in one "BDS" is not what everyone wants, especially with inhibitive costs and people being left with included tools they do use.
It used to be the case you could get Delphi or CBuilder or any Borland product from the local retailer, at a resonable price, and be up and running really quickly. Not now. I tried to get "Turbo Delphi" (As in the paid for version) Not possible in the UK unless you or someone else knows different.
Also consider the amount of people still using Delphi 5 to 7, does that not tell you something?
On the issue of Piracy well the answer to that is simple, price your products beyond the reach of many people and it will get pirated. (That is why Microsoft are being so nice at the moment).
I am not prepared to pay over £500 stirling for BDS (I am not prepared to use a pirate copy partly because it is illegal but also because it is no use to me, I am not even tempted, that is bad when you think about it)
The harsh reality is, you keep selling all in one IDE’s for corporate end users at huge prices, you will lose your traditional customers. And eventually lose out.
Give me, a long time user of your products an incentive to upgrade, or even stick with your products. I do not want all in one at a an insane cost. I can get VB express for nothing from Microsoft. Why should I continue using Delphi? that is the harsh fact. If you do not come up with reasons for end users to buy, then they vote with thier feet.
there, that is that out of my system
All the best wishes
Sophie
Sophie posted:
> agree with Salvador Gomez Retamoza, The bottom line is your products are too big
That is why we offer the individual products and the Turbo(s). You can choose to purchase the different editions, the studio, and the individual products.
> It used to be the case you could get Delphi or CBuilder or any Borland product from the local retailer, at a resonable price, and be up and running really quickly. Not now. I tried to get "Turbo Delphi" (As in the paid for version) Not possible in the UK unless you or someone else knows different.
Please let us know which retailers, shop sites, or stores you are having problems with and I can have our UK office check on what is happening. We cannot change some of the reseller business practices, but we can get better resellers in countries. If resellers in a country are not carrying our full product line, you can use our shop sites in those countries.
Where to buy lists are at http://www.codegear.com/shop
Graham posted:
> The mere mention of the BSA brings to mind horror stories of (metaphorically) jackbooted thugs intimidating companies (often small)
I will forward your post to our legal counsel and piracy counsel. In the past they have told me that BSA does audits in a very business-like manner. We want our customers to have legal copies and to gain the benefits of additional next generation editions.
We also provide the free Turbo Editions so that students and hobbyists can learn programming and do development.
Jason posted:
> "The CEOs of companies that are members of the Business Software Alliance (BSA) believe that 75 percent (or more) of the software innovations and benefits are still to come."
> David, I have the greatest respect for you and always read your texts, but the above quote from the BSA seems just fluff. Unless backed by some sort of evidence, then it shouldn’t be given voice - it’s politician speak.
I just pulled part of a quote from a BSA report for the blog and gave readers several links to the BSA web site and specific articles. BSA provides several more indepth reports to back up their research, surveys, and activities. You can read to get the full survey and feedback from CEOs. You will find a number of articles and results on the BSA site.
Salvador commented:
> at do you think about supporting discounts trough software associations or technology commerce chambers (like AMITI, CANIETI, AMSIS etc. in Mexico) for companies and startups members?
I will take this up at our executive staff meeting. We have the free Turbo products for developers to learn and use. They come with personal and commercial use license.
Let me see what we might be able to do to help MicroISVs and others - and using some of the associations to help work with our partners and resellers may be a good way to accomplish helping small developers.
I hope I can get to other cities in Mexico and around the world. I go where the sales and marketing teams tell me to travel, but I also request to be able to go to new cities when possible so you can travel less, and I can meet with more developers.
Thanks
"In the past they have told me that BSA does audits in a very business-like manner"
The armed marshalls described in Ernie Ball’s CEO (link in my previous post) may be par for the course in today’s U.S.A., but these people are supposed to be customers, not threats. How could it possibly be in any company’s best interest to publicize a BSA audit, especially if they were assessed penalties? Do you hear about the negative cases and the bad feelings they engender? Do you know when a customer decides to switch from your product because they feel (rightly or wrongly) abused?
The BSA seems to carry a big stick, and the "Nail Your Boss" scheme may produce results, but in the long term I think it’s a terrible idea.
If an audit were done on Borland/Codegear’s computers, can you be 100% certain that every one has the proper documentation? I doubt many companies can, even if they have purchased all their software legitimately. I have no idea where the paperwork for my 3-year-old laptop is, so even though WinXP and MS Office are legit (they came installed by Acer), I don’t think I can prove it to the satisfaction of the BSA.
David,
While I personally think that Software Activation is actually counterproductive (does NOT deter pirates, just punishes legitmate users), I respect your right to protect your IP as you see fit. However, the inability of CodeGear to publish a contingency plan as to how users will be able to reactivate lawfully purchased software in the event of product EOL or business failure is inexcusable.
My current software product has been in development for over 10 years. The next product is expected to live even longer. I must demonstrate a plan that GUARANTEES the availability of any required tools. Software Activation rules this out, unless I find a workaround or CG provide a clear statement about escrow, free activation tool or similar.
This is not a theoretical point: I was questioned closely about this during a due diligence exercise.
Sadly the current attitude of CodeGear compares very badly to the original ethos behind the sadly-missed No-Nonsense license.
Best regards
Ian
Thank you David for the opportunity of communicating with such a great man (you of course) and for your response. I was even more worried about this topic since your post and checked from time to time. Good luck and my best regards!
Hello David
"That is why we offer the individual products and the Turbo(s). You can choose to purchase the different editions, the studio, and the individual products."
So if I wanted to use the dotnet compact framewok 2 and write for Windows mobile 5 there is a small IDE and Complier that allows me to do that?
If I wanted to wanted to write native win64 applications there is an IDE that is again, small and allows me to do that.
Or if I wanted a "Turbo Kylix" Targetting linux.
If that were available that would be brilliant.
What I am saying is that while I think the turbo editions are clearly a step in the right direction for those who prefer to take a more modular approach. The turbo editions are somewhat limited in what platforms they target. I think the turbo editions are certainly an excellent idea giving flexibility to end users who do not want to work with monoltithic IDEs. If you have different versions targetting a range of platforms. Allowing the end user to focus on thier platform of choice without the clutter. I think you may find sales will be considerably boosted. If they do not sell much now, it may be because the limited number of targetted platforms these otherwise excellent tools cover. It re opens the community and small business market share the original Turbo series and later C Builder, Delphi etc used to enjoy.
"Please let us know which retailers, shop sites, or stores you are having problems with and I can have our UK office check on what is happening. We cannot change some of the reseller business practices, but we can get better resellers in countries. If resellers in a country are not carrying our full product line, you can use our shop sites in those countries."
I have seen the monolithic BDS available via PC World’s Business vendor. And probably Amazon as well, but as of yet not the turbo editions. I just want to use a general vendor to obtain the turbo editions. But the vendors I would use don’t seem to have these in stock. If they were in stock I would buy them.
All the best wishes
Sophia Siedlberg.
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