Animus Helps Businesses Stay in Compliance, Out of Trouble

Remember the “cautionary tales” we learned as children, stories such as “Little Red Riding Hood” and “Hansel and Gretel” that taught us lessons about being careful when venturing out on our own. In each story there were scary moments for the main characters, who found themselves in trouble with villains, and searched for a way out of the forest.

Phara McLachlan, president of Animus Solutions Inc., a provider of IT Asset Management, has cautionary tales as well for business owners, who often unknowingly use unlicensed computer software. Not being in compliance is as foolish as “Little Red Riding Hood” wandering into the forest without a protector, since the penalty for “pirating” software could result in fines of $150,000 or more per license.

Because of disregard for licensing by many, McLachlan cites statistics indicating that as many as 40 percent of midsize and large companies can expect an external software audit. Ignorance of the law is no excuse, and pointing the finger at the IT guy won’t work either. The “Big, Bad Wolf” or “Wicked Witch,” aka organizations like Business Software Alliance (BSA) and Software and Information Industry Association (SIIA), will still get you.

McLachlan advises an entrepreneur starting an IT business to make sure they understand the rules in order to help and protect their clients. They should be aware that:

According to the BSA Internet site: BSA takes action against software resellers and end-user organizations that make unauthorized copies of software and works closely with law enforcement agencies to coordinate enforcement of criminal copyright laws. BSA’s enforcement program has been instrumental in bringing thousands of organizations into software compliance with software copyright compliance, closing down pirate Internet sites, stopping the illegal sale of pirated software through Internet auction sites and pirated software retail outlets, and seizing illegal CD presses.

IT entrepreneurs need a gentle touch and to practice patience with their clients.

McLachlan said, “The important thing to note is that most of the time it is organizations and regular people, not knowing the law, and not realizing they are breaking law, who are involved.”

When working with an IT tech, McLachlan advises small business owners to ask to see the software license, the paid invoice and electronic trail. “The business should keep all the records pertaining to software in their environment,” she said, and further advises people to ask questions when navigating the technical information. “In addition, when downloading from the Web, people should be alert. They have a tendency to click yes to the agreements, without really understanding the terms and conditions,” said McLachlan. “There are many software applications out there available for free for a limited time. People think they can just keep using them indefinitely. So much of what really is stealing is done out of ignorance,” she added.

It is important to remember that in most cases, the licenses to install software programs are owned not by the employee, but by the business, which is ultimately responsible. McLachlan advises businesses to invest in laptop computers, which are portable and can be taken home by employees. This helps to eliminate the temptation for employees to download their “at work programs” onto their own home computers.

“I can’t stress enough the importance of effectively managing software licenses,” said McLachlan. “We (at Animus Solutions Inc.) take on the full scope of the software asset management lifecycle so you can manage risks, control costs and gain competitive advantage.” McLachlan’s company hopes to be the “animus,” or “catalyst,” to motivate a company to action.

While talking about her company’s unusual name, McLachlan said the Latin word “animus” can mean strong, direct and truthful. She believes that describes her personality because she is very direct with businesses about the importance of a deep analysis to reveal, among other things:

After determining what software is installed on the corporate PCs and servers and how many installations of an application exist in the operation, the Animus Solutions Inc. staff will assess existing licenses, retiring the ones not in use and ensuring that the correct and most cost-effective licensing agreements have been selected for optimum savings.

McLachlan said the goal of an entrepreneur starting an IT business should be to educate her clients.

“Businesses need to be proactive and have a program in place that will help them keep track of all the software they own, keep information on the contracts and keep track of their IT assets. They should start with a discovery tool that will give them an idea of what they have, where it is, and who is using their hardware and software,” said McLachlan. “In addition, they should have a central repository for storing all the information discovered. They can go a step further by tracking and linking all the financial and contractual information to the hardware and software assets being discovered.”

McLachlan has a healthy respect for the passion and creativity involved in designing software programs, since husband, Scott McLachlan, is a software architect. Their daily conversation is sprinkled with reports on applications and what is new in the industry.

McLachlan said Scott is her main support system and encouraged her to start her own business. In 2002 McLachlan became an independent consultant, and by 2004, incorporated her own IT Asset Management business, Animus Solutions Inc.
Of the transition from employee to entrepreneur, McLachlan said, “It was risky, but I felt I was ready and needed to go for it!” Looking back over the last 5 years, she is really happy with that decision since it gave her more control, personal satisfaction and was more lucrative. Initially, McLachlan used her own savings to finance the business, but soon realized she needed a small business loan to cover costs beyond equipment, to include necessities such as fees for trade shows.

McLachlan said one of the biggest challenges of owning her business and being critically involved in all aspects of it, was increasing exposure. “I needed the time and means to get out of the office and make more contacts,” she said. She started out with a client list based on referrals from her previous workplaces, but was concerned about landing the “big accounts.” McLachlan advises all entrepreneurs in her field to network as much as possible and “bite the bullet” by setting money aside for a salesperson. Recently, McLachlan hired a sales and marketing director to generate new business, a decision she feels is in her company’s best interest, and an expense that will pay for itself.

McLachlan hopes to grow her company to 30 to 50 employees, but wants to keep the “hands-on” and personal touch usually associated with small to mid-sized companies. When it comes to providing IT asset management, “bigger is not always better,” said McLachlan. She and her staff at Animus Solutions Inc., pride themselves on making the time and having the ability to service the customer 110%.

“We really listen and will go that extra mile to make their problems and solutions a top priority, whereas the “giants” don’t, or can’t, satisfy the customer because of their heavy client load,” McLachlan said.

McLachlan also has the inside track because of commonality. She recommends that just as in any other type of business situation, an entrepreneur starting out should have first-hand experience, in addition to schooling, to accumulate working knowledge. Her personal experience began with working for a consulting firm in IT Asset Management after graduating from the University of South Florida in Tampa with a Bachelor of Science degree in Management Information Systems. McLachlan studied hard at school and on the job, asking questions and taking detailed notes to learn the tools of the trade: how to determine the types of software installed on computers and servers, assess existing licenses, and choose the and most cost-effective licensing agreements for optimum savings. All the while, she began devising the components for a business plan. “Everything I learned helped me to eventually build my own business, from start to finish, especially the day-to-day operations,” she said.

McLachlan’s day-to-day operations begin at 5 a.m., getting up to feed her newborn son, Ethan, and then playing with him for about an hour. Juggling baby, Blackberry and morning cup of coffee has had its challenges, so the McLachlan’s recently hired a nanny. “I certainly have a lot of respect for fulltime mothers, who are always juggling five or six things” she says. By mid-morning, McLachlan is in her home office booting up five computers and checking with employees. She is eager to know if everyone has made it to their off-site appointments and to find out the results. By noon she is off to the main office on Westshore Blvd. in Tampa, to meet with clients to discuss creating an ITAM program.

Switching from screen to screen comes naturally to McLachlan, who is one of those fortunate people who uses both right and left brain lobes. She entered USF with the plan to produce and direct films, but finding she had an aptitude for computers, applied for the college of business. Although fascinated by the graphic design element of computer study, she soon discovered she enjoyed equally the implementation of information systems. Recently, McLachlan found a way to combine her analytic and creative talents by writing articles about IT Asset Management and Software Asset Management for others.

In her mid-30’s, McLachlan has many plans for the future, including sponsoring the International Association of Information Technology Asset Managers, Inc. (IAITAM) at the Saddlebrook Resort (Tampa) in December as they introduce their Best Practice Library to the ITAM industry.

McLachlan feels it is very advantageous for an IT entrepreneur to join a professional network group or association such as IAITAM, which is dedicated to meeting the needs of IT Asset Management professionals, including, but not limited to, Software Asset Managers, Hardware Asset Managers and Information Technology Asset Managers, in their search for a centralized organization devoted to expanding and codifying information and knowledge within the IT Asset Management field.

McLachlan declares, “My goal is to continue helping businesses control costs, reduce exposure to liability, and improve return on investment with IT Asset Management solutions, in addition to educating and bringing more awareness to the IT Asset Management field.”