Why You Shouldn’t Share Logins to Save Software License Fees

Business management software is expensive. We get it. In fact, all sorts of software for small businesses can become prohibitive when developers charge licensing fees on a per-seat basis. Licensing fees can be expensive enough that companies share logins among employees in order to save money. Is that a good idea? No.

Sharing logins, which is to say usernames and passwords, is also sharing credentials. Doing so could lead to a whole host of problems small businesses never anticipate when software is new. So rather than sharing logins to save money, it is a better idea to source your business software from a company that will not nickel and dime you to death. Hint: Modest is one such company. More on that later.

In the meantime, check out these reasons explaining why sharing logins is a bad idea:

Reason #1: It Could Be Illegal

The Computer Fraud and Abuse Act (CFAA) is a 1986 law enacted by the federal government to address hacking. It has been modified and updated many times since its inception. However, its core purpose remains the same: to prevent access to computer systems and networks “without authorization” or in a way deemed to be “exceeding authorized access”.

To access computer systems without authorization is pretty clear. If someone outside of your organization attempts to get into your software without your permission, they are breaking the law. But what about the idea of “exceeding authorized access”?

A piece of software that requires one license per seat authorizes just that. Sharing logins creates multiple users per seat which is in excess of the software license. That could be considered an attempt to exceed authorized access, thereby being a violation of the law.

Reason #2: Sharing Creates Security Risks

Credentials are important security tools for protecting against network and software intrusion. Each user is given a unique username and password that is linked to their credentials. Here is the problem: sharing logins creates a security risk by compromising credentials. And if something goes wrong with shared credentials, how can you determine if one of the employees using those credentials is at fault?

Reason #3: It Dilutes Software Company Profits

Next up, consider the fact that sharing logins to save money is essentially taking revenue from your software developer. Doing so eats into their profits. While you may not think that this is such a bad thing, how do you feel about customers trying to gain the system to save money on your products and services? Do you appreciate it when they dilute your profits? Probably not.

It is easy to justify sharing logins because business software can be so expensive. It’s easy to convince yourself that sharing is okay because you’re not dealing with a product that’s manufactured by the piece. But software is as much a product as anything you could hold in your hand. License fees are the only way software companies can make money on the products they produce.

Less Expensive Software is the Way to Go

Rather than purchasing expensive software and then trying to save money by sharing logins, investing in less expensive software is the better way to go. But here is the thing: you can get less expensive software and still get everything you need.

Modest believes in building custom business software with all the essential features and none of the fluff. Our software development philosophy saves you money by not requiring you to pay for things you don’t need or want. And when you save money on the product itself, you do not have to game the system by sharing logins.

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