Big IT Firms ‘Gouge Council Clients for Extra Cash’

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by | March 30, 2015

Microsoft and Oracle accused of raising software licenses to make up for flagging revenue. Big IT firms are hitting up councils and universities to squeeze more money out of their technology deployments, a report has claimed.

Companies including Microsoft and Oracle are performing software audits on public sector bodies, often deciding to charge them more for the tech they’re using, according to research published by a software licensing costs expert.

Cerno’s report, The Untrusted Partner: Software license reviews in the public sector discovered that a third of 412 councils it surveyed were subject to a software audit in the previous 20 months (the research took place between August and November 2014).

Of those, 59 per cent were found to be underlicensed, resulting in penalties of up to £50,000 – 23 per cent paid even more.

Redmond carried out 50 per cent of the 160 council audits, with Oracle performing 21 per cent of them.



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