Microsoft Licensing for Small BusinessesAny IT consultant will tell you piracy lives on rampantly. Any good consultant challenges his clients to get legal or stop working with them. It can be extremely hard to do, but it is in your and your client's best interests. So once you get them to see the light, the next question is how to move from their current licensing to something better.
When I say current licensing, I mean anything from none whatsoever, meaning all CD's are clearly CD-R's with keys sharpied on, all in one binder somewhere to "sparse" licensing, meaning they own legitimate retail copies, but have obviously installed them more than one time (often WAY more than one time) Then you have the occasional oddball client who plays favorites. Because one piece of software has a hardware dongle, they own all of that, but to make up for that expense, they pirate everything else!
For small businesses that are accustomed to pirating (it's such a simple and easy to save money in a start-up business!) it is very difficult to swallow the pill of a huge software order. For most of my smaller clients, I recommend only using OEM licensing on operating systems. Purchase the OS with the system, and in 3 years when the hardware is fully paid for, the OS will be in need of an upgrade as well and you can replace both at once. For companies that are over 5 seats, volume licensing with upgrade assurance is the absolute best way to go. You get the software, and depending on the length of the agreement, you get any major upgrades as well. So if you bought 10 volume licenses with software assurance of Office XP Professional when it was the current version, you would have gotten the Office 2003 Professional suite for only the cost of new media. I am speaking very Microsoft-centric here, but other major software manufacturers have similar licensing programs.
One thing to clarify is that some manufacturers have a 10 user minimum, others have point minimums that need to be met, not necessarily seats or copies installed. Please check with your vendor for details
Also, to soften the initial cost of getting legal, almost every vendor allows you to lease software. Obviously, this is subject to finance charges, but for a client to hear $1400/mo compared to $30,000 and be immediately legal on everything you are purchasing.
Like I said, it's never an easy pill to swallow, especially if your company has grown and now the cost to change is high, but the risk is exponentially higher.