Economics of using licensed software’s especially OS

Economics of using licensed software’s especially OS

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Economics of using licensed software’s especially OS

As per a recent study, a very significant 75% of users in India still relies on “cracked” on “hacked” versions of the software.

While in the short term it may save an immediate cost, but the productivity loss over the lifecycle of the asset is significantly higher.

For a small business, with 5- 10 PC’s, we can safely assume a cost to company per employee of Rs. 15000/- per month. For a six-day week, it comes to approximately Rs. 600/- per day. Add to that electricity and customer satisfaction, so can conservatively Rs. 700/-

A system, especially now with India going largely digital, down for a day costs Rs. 700/- for the owner as the system is not available to service the employee. Even if we take a practical case, and especially for Operating System case, and Windows licensed version costs Rs. 12000/- for a lifetime. That is equal to 20 days downtime in 3-4 years of the average lifetime of the machine.

A system with unlicensed software, especially OS, can bring productivity down for at least 20 days in a year including complaints like slowness, application not working, formatting and even a virus attack, no security updates.

Licensed OS like windows comes with its own antivirus and they are most effective for small business and home segment. So, if we take 800 Rs. per license per year that itself if Rs. 3200/- over lifetime of machine saved.

Assumption: -

Economics per PC/Laptop: -

·         Licensed Software = Rs 12000/-

·         Per day employee + running cost per PC = Rs 700/- per day

·         Antivirus cost per year = Rs. 800/-

·         Lifetime of machine = 4 years

·         Hacked OS loss of days/year = 20 days (reduced to compensate for real faults)

Calculations: -

Features

Licensed Case

Unlicensed Case

License

Rs. 12000/-

4 years × 20 days × 700 = 56,000/-

Downtime Days

4 × 5 × 700 = 14000/-

4 × 800 = 3200/-

Total cost over the lifetime

Rs. 28000/-

Rs. 59200/-

 

That is a 211 % saving over 4 years. And happier more customers to serve or employers and employees

ePrompto helps members in maintaining the performance and health of the systems by undertaking planned maintenance using professional tools to ensure you get the best out of your investment. These may sound simple and boring activities, but go a long way in increasing the ROI of your PC/laptop.

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