By Frankline Sunday

Nairobi,Kenya:Cost factor: A genuine copy of Microsoft Office for example, goes for about Sh14,000). One can get a duplicate of the same software for as low as Sh500

Kenyan businesses are losing millions of shillings each year by using outdated software even as newer and more efficient versions are introduced in the Kenyan market.

Data from ICT regulators and software companies indicate that even as new versions of proprietary software and upgrades are released frequently, some SMEs still rely on software versions introduced in the market over ten years ago. This leads to lack of tech support, more energy costs and longer downtimes hence an increase in the overall costs of operations.

According to Kevin Connolly, Windows Business Group Manager for Microsoft East Africa & West Africa, most home and business users do not know the dangers associated with running out dated software. “We have a standard length of time within which we support our products and usually it is ten years,” he explains. “We have already begun the process of discontinuing tech support for Windows XP and by April 8th 2014, users still running Windows XP will be left exposed.”

“This means that if you experience a problem with your PC you will not be able to get an upgrade or help of any kind from a Microsoft technician online or offline. This means that if a virus or malware comes out and we have seen this happen when tech support is discontinued, your chances of getting compromised are higher.”

With over 90 per cent of the computers used in Kenyan homes and businesses running on the Windows platform, Microsoft is moving to inform Kenyan users of the need to upgrade.

Microsoft Office

Mr Connolly states that business still running aged software have been proved to operate at a disadvantage and spend more than those that are always updated on the new software available. “Windows XP uses a lot of electricity especially if you are using a battery it’s going to last a lot shorter than if you have Windows 7 or Windows 8. At the same time, the PC runs slower and is on average costs Sh11, 000 more per year to operate according to research.” However, for Microsoft and other software companies, failure of users staying abreast with the latest editions of their software is just part of a larger problem.

Software piracy remains a huge concern with 80 per cent of consumers in the country indicating that they are concerned with the authenticity of the software that is powering their devices. Microsoft together with the Kenya Copyright Board last year issued a consumer alert over the high quality of counterfeit Microsoft software currently being traded in the country.

Local developers in the lucrative software industry now say that they are at risk of losing millions to software pirates who are already making a killing by duplicating and mass producing popular document processing and Antivirus software from abroad. The vice is attributed to the high cost of both international and local genuine software in the country.

The availability of cheap counterfeits has led many users both individual and corporate to opt for pirated copies in order to save up on costs. This has led to the mushrooming of a cadre of technicians and software dealers who sell and install counterfeits to unsuspecting users. The flip side of this however is that while the underground market thrives and pirates continue to rake in millions, honest resellers, who sell genuine software, are being put out of business. Local software developers who had hitherto thought their products as low risk to counterfeiters are now sounding alarm bells over increased cases of duplication of locally produced software.

Data loss or identity theft

“The greatest threat of software piracy in the local software market comes from company employees,” says Mr Peter Muchene, a manager at Electra Software Limited. “This is whereby an employee will duplicate the software of a particular product leave the company and later sell off the software with minor modifications.” Mr Muchene recently experienced the pain of software piracy first hand when a former employee sold software produced by Electra as his own creation.

“One of the reasons why software piracy thrives in the country aside from the perceived cost benefit is a lack of awareness among users”, he says. “A lot of people do not know that the software they are using is not genuine and few bother to find out as long as everything is functioning as it should.”