For IT directors, 2007 may be the year that they are
able to escape inflexible terms and conditions on their enterprise
software usage, according to Forrester Research.
The analyst firm said this would be the year that IT directors
finally get the upper hand with enterprise software firms, as new
suppliers increasingly offer alternative licensing options.
It predicted that existing software licensee rights and
practices would be challenged by new business models and agreements
such as open source, software as a service and managed application
services.
"With a growing number of alternatives at hand and an industry
shift to service oriented architecture [SOA], customers no longer
have to accept onerous ownership restrictions," said Forrester
principal analyst Ray Wang.
Wang cited several examples where suppliers had tried to
"rip-off" users.
In one case, a supplier withheld a software licence key during a
hardware upgrade and forced the user to buy additional maintenance
on a system that was being wound down. In another example, the
supplier withheld access to an upgrade because the user had a
contract with a non-approved application service provider.
Wang said another common problem with traditional licensing
agreements was that businesses were unable to reduce their overall
maintenance fees when they cut their headcount.
He urged IT directors to encourage their enterprise software
suppliers to view IT departments as investors in their business
rather than as customers.
Forrester has published a Licensee's Bill Of Rights which it
said IT directors should put in place with their suppliers to
overcome software ownership issues.
The document urges businesses to press for a more equitable
relationship with suppliers by demanding reasonable guarantees of
quality in the licensed product, defined service levels, and
requiring that the supplier publishes its prices, maintenance fees
and discounts.
The Bill Of Rights also recommends that IT directors urge their
suppliers to provide full disclosure about known and unknown
defects and allow users to speak freely to their peers, to user
groups or to any other parties others about bugs, security issues
and pricing details.
www.forrester.com/Research/Document/Excerpt/0,7211,40938,00.html
Forrester's tips for enterprise software
licensing
- Pay for actual usage
- Affiliates should be permitted to use the software
- Define permitted users across various operating models
- Train all permitted users
- Insist on free transfer of software licence regardless of site
or hardware
- Have the right to speak freely about the software with other
users
- Demand a fair audit
- Receive access to unlimited support during
disaster/recovery
- Get fair treatment during a merger
- Obtain indemnification from intellectual property
claims.
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