Software Licensing and Compliance

Initech is the consulting firm for Bust It Airlines

Tiffany, CIOClayton, CFOBecca, CEO

Outline of Presentation

Bust It’s Questions Class Survey Software Licensing Software Compliance OSU Software Compliance Open Source

Bust It Airline Background

Bust It Airlines is an international airline transportation company founded by two ambitious graduates from Oregon State University

Founded in 1988 with the intentions of providing inexpensive available air travel to college students whom were traditionally unable to take costly vacations during the student holiday .

Background Continued

20 years later Bust It Airlines manages 1500 employees with service hubs in 125 different cities worldwide.

With net income over 200 million, Bust It Airlines is a publicly traded company on the NYSE under the ticker symbol BIA.

Background Continued

One of the key success factors and important competitive advantages is the company’s flight schedule, ticket pricing and reservation booking software program.  

Their software development team is composed of 250 technicians and engineers from various fields.

In the past year several airlines have approached Bust It Airlines regarding the software licensing rights to AirPro and several other techniques and software applications that the software development team uses.

 

Bust It’s Questions

What are the benefits and disadvantages of licensing out AirPro to other airlines?

What terms and conditions should be outlined in the contract to ensure the AirPro software continues to be our main competitive advantage?

What kind of financial returns are associated with companies licensing out their own software?

Is the project of licensing the AirPro software a profitable venture in the short and long term?

Class Questions

How many of you have used a computer at your job?

What sort of software programs did you use? Were you aware of the software license

agreements with each program? If yes, how did your company make sure they

were in compliance with their software?

Interesting Facts

35% of all software is used illegally Many organizations find it hard to stay

in compliance with their software contracts. (In 2006, $10 billion lost). Source: Microsoft SLP Services Video

Software Compliance

Steps to ensure that your company is in compliance with the software you use– Know the fully understand the software

licenses you have with the software you use

– Regularly audit and inventory your software

– Create and enforce software installation and usage policies.

Source: SC Magazine

Software Licensing

Wiki Definition Is software licensing profitable for

AirPro? What are the licensing terms that should

be outlined in the contract? Reading 6 Benefits/Disadvantages of software

licensing? Software licensing models

Hey Man!We’re halfway done!

Amy Donnelly, OSU Software Compliance Coordinator

We asked her a few questions about Software Compliance at OSU:

Does OSU have some sort of software compliance policy? If so, what is it?

What sort of auditing does the university go through to make sure all of the colleges are being compliant with their software?

Is each individual college responsible for making sure they are compliant? or is there a university-wide system?

Does the university use some sort of software asset management program such as GASP or Microsoft's Systems Management Server?

I have heard that the College of Business is getting rid of their outlook emails because many of them were unpaid. Can you tell me more about this?

Josh Caldwell, System Administrator for Knife River Corporation

Construction company with operations in 17 states and 7000 employees during peak season.

Software Compliance Policy – Try to stay within the boundaries of the contracts.

They use a software program called LANDesk to run an internal audit to monitor their software compliance (Quarterly).– Runs queries of specific programs to monitor their

licenses.– Fault: Does not account for the computers that are

not in their network.

Josh Caldwell, continued

Five months ago they were audited by Autodesk for the software program AutoCAD.

They realized that they had 15 more programs than originally purchased.

They were given 3 weeks to either delete the programs or purchase them. – penalty of over $100,000 per copy

Josh Caldwell, continued

Google audited Knife River for Google Earth. It is free to download for home use, but businesses are required to pay $300-$500 for each copy.

They realized that it there were many copies of the program on their network. Since they do not use the program within their business, it was not a big deal to delete each copy.

Open Source Software License

Definition:– Open source does not only mean giving

access to the source code. The distribution terms must follow this criteria:

Reading 8

Our Recommendations

Choose Open Source Licensing??

Umm, yeah if you guys have any questions for us, that’d be greaaaat.