IT chiefs are struggling with the complexity of software
licensing contracts, and they see little evidence of suppliers
becoming more accommodating, or licences offering better value than
three years ago.
The findings, from Computer Weekly’s quarterly CIO Index survey
of top UK IT management, show that software licensing is creating
new headaches for IT chiefs as they look to make savings and reduce
complexity across the enterprise.
More than 50% of IT directors said they were spending more
management time on software licence issues than this time last
year. Sixty six per cent said suppliers were becoming less
accommodating to user needs, and 59% said value for money had not
improved since 2003.
IT directors contacted by Computer Weekly said they wanted
suppliers to take steps to rationalise their software licensing
contracts and improve their transparency.
Many said the proliferation of licensing models raised the
potential for getting more suitable arrangements but, in practice,
it made it more difficult to compare like with like and ensure
value for money. There was also disquiet that licensing complexity
was being used to squeeze existing customers.
David Morris, head of IT at international property consultancy
King Sturge, said more products and more complex licence
arrangements were making it increasingly difficult for IT chiefs to
maintain the correct licensing position.
Michael Pincher, IT director at Crossrail, went further, saying,
“Suppliers see organisations that use their software as cash
cows.”
Licensing consultant Bill Monk said the concerns were justified.
“The rules from the major software suppliers are getting more
complicated. For big firms, it is reaching the point where they
need a Microsoft specialist and an Oracle specialist just to say,
‘this is what we are licensed for’ with some authority.”
Nick Kalisperas, director for markets at IT suppliers body
Intellect, said CIOs should address their specific concerns
directly to suppliers. “When licensing concerns arise, we encourage
active and open dialogue between the customer and the supplier. As
an industry, we are always open to customers raising any concerns
they have and working constructively with them,” he said.
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