1. Play Fair Day Analysis
Analysis of competitive disadvantage experienced by licensed manufacturers
in emerging markets with rampant piracy
Jeff Marowits, Principal: jmarowits@keystonestrategy.com
Irshad Allana, Analyst: iallana@keystonestrategy.com
Joseph Quan, Analyst: jquan@keystonestrategy.com
1
2. About the Keystone Strategy study
To date, piracy research has primarily investigated licensing enforcement drivers, as
well as the rates and impact of rampant piracy in emerging nations (like the BRIC
countries) - specifically as piracy harms firms in developed markets such as the United
States.
Microsoft commissioned Keystone Strategy to study enterprise piracy in a new way –
by focusing on companies within emerging markets taking steps to play by the rules
and reduce piracy.
----
Today, we release the results of Keystone’s first-of-its-kind study, in which we tackle the
following critical issues regarding the future of piracy reduction and growth of innovation in
emerging economies:
1. The perceptions and attitudes (distinct from enforcement) of emerging market companies
taking positive steps to reduce piracy and play by the rules.
2. The financial impact of competitive disadvantage that firms playing by the rules face when
their competitors engage in piracy.
2
4. Central elements of Keystone’s analysis
Study scope
• For this global study, Keystone looked at software piracy in the manufacturing sector
for 17 different countries in the Asia Pacific, Latin American, and Central and Eastern
European regions.
Understanding perspectives and attitudes
• We reviewed third party research and conducted interviews with companies playing by
the rules, and drilled down on one major company in each of the emerging market
regions to see how firms were utilizing information technology, and how piracy was
affecting them.
Determining impact on companies that play by the rules
• We analyzed data from the Bureau of Labor Statistics, the Business Software
Alliance, the CIA World Factbook, government statistical reports, Microsoft
research, UNIDO, software resellers, and the World Bank to assess the impact of
piracy at the macroeconomic level.
4
5. Our study focuses on manufacturing firms because they are the drivers of rapid
economic growth in emerging markets
In China, the world’s fastest growing economy, manufacturing accounts for
almost 40 percent of GDP.
60% Manufacturing as percent of economy
50%
40%
30%
20%
10%
0%
Source: Local government websites, CIA World Factbook
5
6. Through extensive interviews with manufacturers, we were able to map the IT software
deployments of a typical emerging market manufacturer
PC Operating System (Windows 7/XP)
System
Security (McAfee Business)
Content Word/Data Processor (Office)
Data
Database Server (SQL)
Management
Collaboration Server (SharePoint)
Collaboration
Messaging Server (Exchange)
Manufacturing/ General Engineering Design (AutoCAD)
Design Manufacturing Process Design (PTC Pro-Engineer)
ERP- Project/Order Management (Project Pro)
Operations Supply Chain Management (Infor SCM)
Customer Relationship Management (SAP)
6
8. Key findings from extensive research and interviews with manufacturers in emerging
markets
We studied the perceptions and attitudes of firms that play by the rules to understand the
competitive landscape and their motivations (distinct from enforcement) with respect to IP
We arrived at four primary insights:
1 Protection of intellectual property is necessary for the growth of innovation
IT is a point of competitive advantage and differentiation – these firms are industry
2 leaders in large part because of their use of technology
3 Firms are well-licensed because it’s the ethical decision; pirating software contradicts
their corporate commitment to integrity and honesty
4 Licensed IT in particular has many technical benefits – it gives them the assurance of
partnership with software firms which keeps their operations running at optimal levels
8
9. Leading international manufacturers that play fair in emerging markets provide a
deeper understanding of perceptions and attitudes regarding intellectual property
China India Colombia Russia
Key
Information
Company:
Appliance and Apparel
Industry Glass containers Steelmaking
tools manufacturing
Revenue $278 Million $275 Million $300 Million $13.6 Billion
Employees 3,100 4,500 3,000 84,000
Source Hoovers, OneSource, company annual reports, comments by HNG and Severstal results of direct interviews by Keystone, Crystal SA (Fabrica) and Great Star data result of third-party research.
9
10. Value of IPR: Intellectual property protection is necessary for innovation growth in
emerging markets
“I see much improvement in piracy in Russia in recent years and I expect it will lead
to more innovation and more software development since both of them are
connected.”
Evgeny Charkin, Chief Information Office at Severstal
“The international community has attached even greater importance to IPR and
innovation. China should never be lax in its IPR protection efforts as it moves towards
a high-tech industry and other knowledge-based industries.”
Dr. Zhipei Jiang, former Chief Justice of the Supreme Peoples’ Court IPR Tribunal
“IPR [intellectual property rights] violations not only hurt businesses in Russia, but
cost the Russian government billions of rubles in uncollected revenues from
counterfeit products evading taxes and duties… IPR violations are barriers to new
investment and impede Russia’s effort to join the WTO.”
Peter Necarsulmer, President of Coalition for Intellectual Property Rights
Source BRIC manufacturer interviews, IT case studies, comments by HNG and Severstal from interviews by Keystone, Crystal SA (Fabrica) and Great Star from third-party research.
10
11. Value of IT: IT is a point of competitive advantage and differentiation – these firms are
industry leaders in large part because of their use of technology
“Software is critical to our business. Our board believes that it is a key differentiator
of our business and a source of competitive advantage.”
Evgeny Charkin, Chief Information Office at Severstal
“IT has increased the efficiency of the whole operation, not just the production
process. Things are much clearer when we have access to the information at the right
place at the right time.
In terms of information technology, everything in the business gets faster; all the
production processes and supervisory controls are integrated and automated. And
since glass manufacturing is a continuous process, it is important that the
information is quickly available.”
Bharat Somany, Director at Hindusthan National Glass & Industries Ltd
Source BRIC manufacturer interviews, IT case studies, comments by HNG and Severstal from interviews by Keystone, Crystal SA (Fabrica) and Great Star from third-party research.
11
12. Ethical reasons behind licensed IT: Pirating software contradicts the corporate
commitment of licensed manufacturers to integrity and honesty
“When a company uses information technology illegally in its manufacturing
process, there is without doubt an act of unfair competition, because some costs are
avoided affecting the price of the final product. It is like avoiding payment of social
benefits, evading taxes or not complying with the minimum environmental rules.”
Jose Manuel Gutierrez, Manager of IT at Fabrica (Crystal SA)
“We are a business with a very good reputation and strong ethics - we want to
maintain that reputation. We do not steal.”
Evgeny Charkin, Chief Information Office at Severstal
“Transparency is something that starts vanishing pretty quickly when you [pirate
software]. Not only do you hide from others, but you end up having things in your
own company that are hidden from you… there is no accountability when you go in
for pirated software.”
Bharat Somany, Director at Hindusthan National Glass & Industries Ltd
Source BRIC manufacturer interviews, IT case studies, comments by HNG and Severstal from interviews by Keystone, Crystal SA (Fabrica) and Great Star from third-party research.
12
13. Technical benefits of legal IT: Licensed IT gives companies the assurance of security
and frequent updates, which keep their operations running at optimal levels
“The way I see it, if you don’t actually buy the software, you have a black box – you
can’t get any support on it and you cannot really build it up to be a solution which you
would benefit from… No software is perfect and does need multiple iterations…That
doesn’t work unless you paid for it and have a proper license for it that gets you instant
access to updates.”
Bharat Somany, Director at Hindusthan National Glass & Industries Ltd
“This [incorporating IT] has been very essential to the improvement of our business
processes.”
Evgeny Charkin, Chief Information Office at Severstal
“We will establish a long-term partnership with Microsoft to set up an effective
software asset management mechanism. This mechanism will help make our software
license management more dynamic, optimize the allocation of our software assets and
provide better service to the company.”
Great Star Industrial
Source BRIC manufacturer interviews, IT case studies, comments by HNG and Severstal from interviews by Keystone, Crystal SA (Fabrica) and Great Star from third-party research.
13
15. Keystone’s study calculates impact and key statistics that influence competitive
disadvantage
Methodology
Step 3: Estimate the
Step 1: Estimate the Step 2: Calculate the Step 4: Assess
number of disadvantage-
total number of portion of licensed competitive
bearing PCs in well-
licensed PCs in PCs that belong to disadvantage at a
licensed manufacturing
manufacturing firms well-licensed firms national level
firms
•
5 Estimate extent of
•1 Determine total number of •
3 Segment “well-licensed” compliance of well- •
7 Calculate annual software
PCs in manufacturing firms as those with licensed firms spend for disadvantage-
above-average bearing PCs
compliance 6 Determine number of
2 Estimate number of licensed PCs at well- •
8 Determine lost ROI
Determine number
licensed PCs in 4 licensed firms suffered by licensed
of licensed PCs in
manufacturing firms compared to those manufacturers
well-licensed firms
pirated at “poorly
licensed” firms
15
16. Step 1: Estimate the total number of licensed PCs in manufacturing firms
Sources Methodology Example
Total manufacturing
Total manufacturing employees 99M Manufacturing employees
employees from government
statistical reports * *
PC to Employee ratio from PC to Employee ratio 0.17 Ratio
Keystone analysis using
survey data
Number of PCs in 16.6M PCs
manufacturing in manufacturing
Enterprise compliance rate * *
estimated through Keystone Enterprise compliance rate 31% compliance
analysis of BSA piracy data
= =
Total number of licensed PCs in 5.2M licensed PCs
manufacturing
Sources: BRIC government statistical reports, BSA Global Software Piracy Study, Keystone Strategy analysis
16
17. Step 2: Calculate the portion of licensed PCs that belong to well-licensed
manufacturing firms
Sources Methodology Example
Well-licensed firms
characterized as those with a
compliance rate higher than the
national average Total number of licensed PCs in 5.2M licensed PCs in
manufacturing manufacturing
* *
Percent of licensed PCs in well- 79% of licensed PCs in well-
Percent of licensed PCs in licensed firms licensed firms
well-licensed firms estimated
from normal distribution = =
adjusted with observations from
internal Microsoft studies Number of licensed PCs in well- 4.1M licensed PCs in well-
licensed firms licensed firms
*Note: Licensed PCs are
distributed among well- and
poorly licensed firms; even poorly
licensed firms license some PCs,
though in smaller quantities
Sources: Microsoft internal data on customer piracy rates, BSA statistics, Keystone Strategy analysis
17
18. Step 3: Determine the number of disadvantage-bearing PCs in well-licensed
manufacturing firms
Sources Methodology Example
* Note: only licensed PCs in
well-licensed firms above the Number of licensed PCs in 4.1M licensed PCs in well-
compliance rate of average poorly well-licensed firms licensed firms
licensed firms contributes to the
disadvantage * *
Extent of compliance above (Percent compliance of well- (54% compliance of well-
average poorly licensed firms is licensed firms licensed firms
obtained by calculating the
– –
difference between the average
well-licensed and poorly licensed Percent of compliance of 12% compliance of poorly
firms’ compliance rate poorly licensed firms) licensed firms)
Average compliance of well- =
=
and poorly licensed firms
1.7M disadvantage-bearing
estimated from internal data for Number of disadvantage- PCs at well-licensed firms
emerging market countries bearing PCs at well-licensed
firms
Sources: Microsoft and Keystone Strategy internal data, BSA Global Software Piracy Study, Keystone Strategy analysis
18
19. Step 4: Assess competitive disadvantage created on a national level
Sources Methodology Example
Number of disadvantage-bearing 1.7M disadvantage-bearing PCs at
PCs at well-licensed firms well-licensed firms
Software costs from * *
Keystone analysis of software
Software cost per PC $2,194 per manufacturing PC
costs and usage rates in
manufacturing firms; prices
from official local resellers
Total software costs for $3.75B software costs for
disadvantage-bearing PCs in disadvantage-bearing PCs in
Enterprise software well-licensed firms well-licensed firms
lifecycle of 5 years used to / /
determine annual competitive
Enterprise software lifecycle 5 year software lifecycle
disadvantage
* *
Return on Invested Capital Potential return on invested capital (1.1164) ROIC
is a conservative average from
financials of emerging = =
markets manufacturers Annual competitive $837M of annual competitive
disadvantage created by piracy disadvantage created by piracy
Sources: Licensed software resellers in BRIC nations, Microsoft support site, IT professional interviews, financial data from emerging market companies
19
20. Key insights into competitive landscape of Chinese manufacturers playing by the rules
China
Step 3: Estimate the
Step 1: Estimate the Step 2: Calculate the Step 4: Assess
number of disadvantage-
total number of portion of licensed competitive
bearing PCs in well-
licensed PCs in PCs that belong to disadvantage at a
licensed manufacturing
manufacturing firms well-licensed firms national level
firms
• 16.6M PCs in
1 • 79% of licensed PCs
3 •
5 Well-licensed firms, 7 $750M in annual
manufacturing belong to well- on average, are 42% software costs for
licensed firms more compliant than disadvantage-bearing
poorly licensed firms PCs in well-licensed
firms
2 5.2M licensed PCs in 4 4.1M licensed PCs 6 The gap between and • $837M of annual
8
manufacturing firms belong to well- poorly licensed firms is competitive
licensed firms 1.7M licensed PCs disadvantage across
China
Sources: BLS, BSA, CIA World fact book, Government statistical reports, Keystone Strategy analysis, Manufacturer and software seller interviews, Microsoft internal data, UNIDO, World Bank
20
22. Emerging market financial measures of annual competitive harm to manufacturers
playing by the rules – annual disadvantage = $2.9B globally / $1.6B in BRIC nations
Asia Pacific
$837M $505M
$55M $52M
$27M $15M
China India Thailand Vietnam Indonesia Malaysia
Latin America Central and Eastern Europe
$186M $115M
$76M
$36M $46M $39M
$22M $19M $31M
$18M $8M
Brazil Mexico Peru Chile Colombia
Russia Poland Turkey Ukraine Romania Belarus
Sources: BLS, BSA, CIA World fact book, Government statistical reports, Keystone Strategy analysis, Manufacturer and software seller interviews, Microsoft internal data, UNIDO, World Bank
22
23. Breakdown of total BRIC manufacturing employment and competitive harm -
aggregate software lifecycle competitive disadvantage = $8.2B in BRIC countries
Percent of total BRIC manufacturing Competitive disadvantage breakdown
employment in each country (5 year software lifecycle)
165 Million total BRIC manufacturing employees $8.2 Billion in aggregate competitive
disadvantage
Brazil, Russia $4185M
4% 5% $2527M
$1500M
$1250M
$1000M $929M
India, $750M
31% $575M
China,
60% $500M
$250M
$M
China India Brazil Russia
Sources: BLS, BSA, CIA World fact book, Government statistical reports, Keystone Strategy analysis, Manufacturer and software seller interviews, Microsoft internal data, UNIDO, World Bank
23
26. Keystone Strategy’s findings from its study of competitive effects on manufacturers in
playing by the rules in emerging markets with rampant piracy
Microsoft commissioned Keystone Strategy to study enterprise piracy in a new way –
by focusing on the impact of widespread piracy on those companies within emerging
markets that are taking steps to play by the rules and reduce piracy.
----
Through interviews and third party research, Keystone’s study highlights important
implications from the perceptions and attitudes of manufacturing firms regarding IP:
1. Protection of intellectual property is necessary for the growth of innovation
2. IT is a point of competitive advantage and differentiation – these firms are industry leaders
in large part because of their use of technology
3. Manufacturers are compliant because it’s the ethical decision; pirating software contradicts
their corporate commitment to integrity and honesty
4. Licensed IT in particular has many technical benefits– it gives them the assurance of
security and frequent updates which keep their operations running at optimal levels
26
27. Financial impact of competitive harm to manufacturers playing by the rules by region –
aggregate competitive disadvantage = $2.9B annually and $14.4B over software lifecycle
Asia Pacific
Annual disadvantage: $1,975M
Software lifecycle $9.9B
disadvantage (5 years)
Latin America Central and Eastern Europe
Annual disadvantage $546M Annual disadvantage: $356M
Software lifecycle $2.7B Software lifecycle $1.8B
disadvantage (5 years) disadvantage (5 years)
Sources: BLS, BSA, CIA World fact book, Government statistical reports, Keystone Strategy analysis, Manufacturer and software seller interviews, Microsoft internal data, UNIDO, World Bank
27
29. Keystone works closely with academic experts to deliver high-impact, data driven
solutions to global companies and government institutions
Focus Industries Operations
Strategy and policy built around Focus on industries driven by science In recent months, Keystone engaged
industry leading experts and and technology with clients in the
experienced consultants Americas, Europe, Middle East and
Asia
Experts Clients Offices
Leading affiliates at top institutions Innovative global Boston, San Francisco, Chicago, Abu
including companies, governments, and Dhabi, New York, Seattle and Milan
Harvard, MIT, Stanford, Wharton and government institutions
Berkeley
29
30. Keystone is a global consulting firm with deep expertise in manufacturing supply
chains and software piracy in emerging markets
Manufacturing Expertise
Worked with several clients to develop an expertise in global manufacturing and supply chains
Intellectual Property Protection
Analytical reports have served as evidentiary support in several anti-trust and damage recovery cases
Software Piracy
Developed comprehensive understanding of software usage and piracy in emerging market manufacturing environments
Anti-Piracy Outreach and Enforcement
Supported anti-piracy legislation in the U.S. and created strategies for targeted anti-piracy campaigns globally
30
32. Appendix: Individual Country breakdown (ordered by region and impact)
BRIC China, India, Brazil, Russia
Asia Pacific Thailand, Vietnam, Indonesia, Malaysia
Latin America Mexico, Peru, Chile, Colombia
Central & Eastern
Europe
Poland, Turkey, Ukraine, Romania, Belarus
32
33. Key impact statistics illustrate piracy’s significant, unfair impact on Chinese
manufacturers playing by the rules
The substantial, financial unfair advantage of software pirates over firms playing by the
rules can be used for many purposes, including hiring thousands of employees.
$837 Million
=
217,000 employees
# of licensed PCs Software Lifecycle Annual
Manufacturing
Area in firms playing by Disadvantage Competitive
employees
the rules (5 Year) Disadvantage
China 99.0M 4.1M $4185M $837M
BRIC 164.8M 8.2M $8216M $1643M
Asia Pacific 194.7M 9.6M $9873M $1975M
Sources: BLS, BSA, CIA World fact book, Government statistical reports, Keystone Strategy analysis, Manufacturer and software seller interviews, Microsoft internal data, UNIDO, World Bank
33
34. Key impact statistics illustrate piracy’s significant, unfair impact on Indian
manufacturers playing by the rules
The substantial, financial unfair advantage of software pirates over firms playing by the
rules can be used for many purposes, including hiring thousands of employees.
$505 Million
=
215,000 employees for a year
# of licensed PCs Software Lifecycle Annual
Manufacturing
Area in firms playing by Disadvantage Competitive
employees
the rules (5 Year) Disadvantage
India 50.5M 2.7M $2527M $505M
BRIC 164.8M 8.2M $8216M $1643M
Asia Pacific 194.7M 9.6M $9873M $1975M
Sources: BLS, BSA, CIA World fact book, Government statistical reports, Keystone Strategy analysis, Manufacturer and software seller interviews, Microsoft internal data, UNIDO, World Bank
34
35. Key impact statistics illustrate piracy’s significant, unfair impact on Brazilian
manufacturers playing by the rules
The substantial, financial unfair advantage of software pirates over firms playing by the
rules can be used for many purposes, including hiring thousands of employees.
$186 Million
=
20,000 employees for a year
# of licensed PCs Software Lifecycle Annual
Manufacturing
Area in firms playing by Disadvantage Competitive
employees
the rules (5 Year) Disadvantage
Brazil 7.2M 0.9M $929M $186M
BRIC 164.8M 8.2M $8216M $1643M
Latin America 19.8M 2.5M $2729M $546M
Sources: BLS, BSA, CIA World fact book, Government statistical reports, Keystone Strategy analysis, Manufacturer and software seller interviews, Microsoft internal data, UNIDO, World Bank
35
36. Key impact statistics illustrate piracy’s significant, unfair impact on Russian
manufacturers playing by the rules
The substantial, financial unfair advantage of software pirates over firms playing by the
rules can be used for many purposes, including hiring thousands of employees.
$115 Million
=
15,000 employees for a year
# of licensed PCs Software Lifecycle Annual
Manufacturing
Area in firms playing by Disadvantage Competitive
employees
the rules (5 Year) Disadvantage
Russia 8.1M 0.5M $575M $115M
BRIC 164.8M 8.2M $8216M $1643M
Central &
25.7M 1.7M $1778M $356M
Eastern Europe
Sources: BLS, BSA, CIA World fact book, Government statistical reports, Keystone Strategy analysis, Manufacturer and software seller interviews, Microsoft internal data, UNIDO, World Bank
36
37. Key impact statistics illustrate piracy’s significant, unfair impact on Thai
manufacturers playing by the rules
The substantial, financial unfair advantage of software pirates over firms playing by the
rules can be used for many purposes, including hiring thousands of employees.
$55 Million
=
24,000 employees for a year
# of licensed PCs Software Lifecycle Annual
Manufacturing
Area in firms playing by Disadvantage Competitive
employees
the rules (5 Year) Disadvantage
Thailand 5.2M 0.3M $273M $55M
BRIC 164.8M 8.2M $8216M $1643M
Asia Pacific 194.7M 9.6M $9873M $1975M
Sources: BLS, BSA, CIA World fact book, Government statistical reports, Keystone Strategy analysis, Manufacturer and software seller interviews, Microsoft internal data, UNIDO, World Bank
37
38. Key impact statistics illustrate piracy’s significant, unfair impact on Vietnamese
manufacturers playing by the rules
The substantial, financial unfair advantage of software pirates over firms playing by the
rules can be used for many purposes, including hiring thousands of employees.
$52 Million
=
22,000 employees for a year
# of licensed PCs Software Lifecycle Annual
Manufacturing
Area in firms playing by Disadvantage Competitive
employees
the rules (5 Year) Disadvantage
Vietnam 7.0M 0.3M $259M $52M
BRIC 164.8M 8.2M $8216M $1643M
Asia Pacific 194.7M 9.6M $9873M $1975M
Sources: BLS, BSA, CIA World fact book, Government statistical reports, Keystone Strategy analysis, Manufacturer and software seller interviews, Microsoft internal data, UNIDO, World Bank
38
39. Key impact statistics illustrate piracy’s significant, unfair impact on Indonesian
manufacturers playing by the rules
The substantial, financial unfair advantage of software pirates over firms playing by the
rules can be used for many purposes, including hiring thousands of employees.
$27 Million
=
16,000 employees for a year
# of licensed PCs Software Lifecycle Annual
Manufacturing
Area in firms playing by Disadvantage Competitive
employees
the rules (5 Year) Disadvantage
Indonesia 4.4M 0.2M $135M $27M
BRIC 164.8M 8.2M $8216M $1643M
Asia Pacific 194.7M 9.6M $9873M $1975M
Sources: BLS, BSA, CIA World fact book, Government statistical reports, Keystone Strategy analysis, Manufacturer and software seller interviews, Microsoft internal data, UNIDO, World Bank
39
40. Key impact statistics illustrate piracy’s significant, unfair impact on Malaysian
manufacturers playing by the rules
The substantial, financial unfair advantage of software pirates over firms playing by the
rules can be used for many purposes, including hiring thousands of employees.
$15 Million
=
2,000 employees for a year
# of licensed PCs Software Lifecycle Annual
Manufacturing
Area in firms playing by Disadvantage Competitive
employees
the rules (5 Year) Disadvantage
Malaysia 1.0M 0.1M $76M $15M
BRIC 164.8M 8.2M $8216M $1643M
Asia Pacific 194.7M 9.6M $9873M $1975M
Sources: BLS, BSA, CIA World fact book, Government statistical reports, Keystone Strategy analysis, Manufacturer and software seller interviews, Microsoft internal data, UNIDO, World Bank
40
41. Key impact statistics illustrate piracy’s significant, unfair impact on Mexican
manufacturers playing by the rules
The substantial, financial unfair advantage of software pirates over firms playing by the
rules can be used for many purposes, including hiring thousands of employees.
$76 Million
=
10,000 employees for a year
# of licensed PCs Software Lifecycle Annual
Manufacturing
Area in firms playing by Disadvantage Competitive
employees
the rules (5 Year) Disadvantage
Mexico 3.2M 0.4M $382M $76M
BRIC 164.8M 8.2M $8216M $1643M
Latin America 19.8M 2.5M $2729M $546M
Sources: BLS, BSA, CIA World fact book, Government statistical reports, Keystone Strategy analysis, Manufacturer and software seller interviews, Microsoft internal data, UNIDO, World Bank
41
42. Key impact statistics illustrate piracy’s significant, unfair impact on Peruvian
manufacturers playing by the rules
The substantial, financial unfair advantage of software pirates over firms playing by the
rules can be used for many purposes, including hiring thousands of employees.
$36 Million
=
13,000 employees for a year
# of licensed PCs Software Lifecycle Annual
Manufacturing
Area in firms playing by Disadvantage Competitive
employees
the rules (5 Year) Disadvantage
Peru 1.6M 0.2M $178M $36M
BRIC 164.8M 8.2M $8216M $1643M
Latin America 19.8M 2.5M $2729M $546M
Sources: BLS, BSA, CIA World fact book, Government statistical reports, Keystone Strategy analysis, Manufacturer and software seller interviews, Microsoft internal data, UNIDO, World Bank
42
43. Key impact statistics illustrate piracy’s significant, unfair impact on Chilean
manufacturers playing by the rules
The substantial, financial unfair advantage of software pirates over firms playing by the
rules can be used for many purposes, including hiring thousands of employees.
$22 Million
=
1,000 employees for a year
# of licensed PCs Software Lifecycle Annual
Manufacturing
Area in firms playing by Disadvantage Competitive
employees
the rules (5 Year) Disadvantage
Chile 0.9M 0.1M $110M $22M
BRIC 164.8M 8.2M $8216M $1643M
Latin America 19.8M 2.5M $2729M $546M
Sources: BLS, BSA, CIA World fact book, Government statistical reports, Keystone Strategy analysis, Manufacturer and software seller interviews, Microsoft internal data, UNIDO, World Bank
43
44. Key impact statistics illustrate piracy’s significant, unfair impact on Colombian
manufacturers playing by the rules
The substantial, financial unfair advantage of software pirates over firms playing by the
rules can be used for many purposes, including hiring thousands of employees.
$19 Million
=
4,000 employees for a year
# of licensed PCs Software Lifecycle Annual
Manufacturing
Area in firms playing by Disadvantage Competitive
employees
the rules (5 Year) Disadvantage
Colombia 0.6M 0.1M $95M $19M
BRIC 164.8M 8.2M $8216M $1643M
Latin America 19.8M 2.5M $2729M $546M
Sources: BLS, BSA, CIA World fact book, Government statistical reports, Keystone Strategy analysis, Manufacturer and software seller interviews, Microsoft internal data, UNIDO, World Bank
44
45. Key impact statistics illustrate piracy’s significant, unfair impact on Polish
manufacturers playing by the rules
The substantial, financial unfair advantage of software pirates over firms playing by the
rules can be used for many purposes, including hiring thousands of employees.
$46 Million
=
4,000 employees for a year
# of licensed PCs Software Lifecycle Annual
Manufacturing
Area in firms playing by Disadvantage Competitive
employees
the rules (5 Year) Disadvantage
Poland 2.4M 0.2M $229M $46M
BRIC 164.8M 8.2M $8216M $1643M
Central &
25.7M 1.7M $1778M $356M
Eastern Europe
Sources: BLS, BSA, CIA World fact book, Government statistical reports, Keystone Strategy analysis, Manufacturer and software seller interviews, Microsoft internal data, UNIDO, World Bank
45
46. Key impact statistics illustrate piracy’s significant, unfair impact on Turkish
manufacturers playing by the rules
The substantial, financial unfair advantage of software pirates over firms playing by the
rules can be used for many purposes, including hiring thousands of employees.
$39 Million
=
5,000 employees for a year
# of licensed PCs Software Lifecycle Annual
Manufacturing
Area in firms playing by Disadvantage Competitive
employees
the rules (5 Year) Disadvantage
Turkey 2.4M 0.2M $196M $39M
BRIC 164.8M 8.2M $8216M $1643M
Central &
25.7M 1.7M $1778M $356M
Eastern Europe
Sources: BLS, BSA, CIA World fact book, Government statistical reports, Keystone Strategy analysis, Manufacturer and software seller interviews, Microsoft internal data, UNIDO, World Bank
46
47. Key impact statistics illustrate piracy’s significant, unfair impact on Ukrainian
manufacturers playing by the rules
The substantial, financial unfair advantage of software pirates over firms playing by the
rules can be used for many purposes, including hiring thousands of employees.
$31 Million
=
8,000 employees for a year
# of licensed PCs Software Lifecycle Annual
Manufacturing
Area in firms playing by Disadvantage Competitive
employees
the rules (5 Year) Disadvantage
Ukraine 3.9M 0.2M $156M $31M
BRIC 164.8M 8.2M $8216M $1643M
Central &
25.7M 1.7M $1778M $356M
Eastern Europe
Sources: BLS, BSA, CIA World fact book, Government statistical reports, Keystone Strategy analysis, Manufacturer and software seller interviews, Microsoft internal data, UNIDO, World Bank
47
48. Key impact statistics illustrate piracy’s significant, unfair impact on Romanian
manufacturers playing by the rules
The substantial, financial unfair advantage of software pirates over firms playing by the
rules can be used for many purposes, including hiring thousands of employees.
$18 Million
=
3,000 employees for a year
# of licensed PCs Software Lifecycle Annual
Manufacturing
Area in firms playing by Disadvantage Competitive
employees
the rules (5 Year) Disadvantage
Romania 1.1M 0.1M $90M $18M
BRIC 164.8M 8.2M $8216M $1643M
Central &
25.7M 1.7M $1778M $356M
Eastern Europe
Sources: BLS, BSA, CIA World fact book, Government statistical reports, Keystone Strategy analysis, Manufacturer and software seller interviews, Microsoft internal data, UNIDO, World Bank
48
49. Key impact statistics illustrate piracy’s significant, unfair impact on Belarusian
manufacturers playing by the rules
The substantial, financial unfair advantage of software pirates over firms playing by the
rules can be used for many purposes, including hiring thousands of employees.
$8 Million
=
20,000 employees for a year
# of licensed PCs Software Lifecycle Annual
Manufacturing
Area in firms playing by Disadvantage Competitive
employees
the rules (5 Year) Disadvantage
Belarus 1.2M 0.05M $42M $8M
BRIC 164.8M 8.2M $8216M $1643M
Central &
25.7M 1.7M $1778M $356M
Eastern Europe
Sources: BLS, BSA, CIA World fact book, Government statistical reports, Keystone Strategy analysis, Manufacturer and software seller interviews, Microsoft internal data, UNIDO, World Bank
49