* Tips for negotiating software contracts
In the last newsletter, we looked at tips for negotiating better telecom deals. In this installment, we’ll focus on another expensive aspect of IT spending: software licensing.
Nancy Markle, president of the Society of Information Management (SIM) IT professional association, shares her thoughts on contract negotiation in a Network World article (https://www.nwfusion.com/careers/2004/0510man.html). She recommends appointing a skilled chief negotiator and establishing processes and procedures for all IT purchases that exceed a certain dollar amount. Her other tips include building flexibility and scalability into a contract and speaking to many people involved with an implementation at a particular company rather than just the one person there who agreed to serve as the vendor’s customer reference.
In order to negotiate an effective deal, you need to know the lingo. Linda Musthaler outlines the pros and cons of perpetual, subscription-based and utility-based licensing arrangements. Go to https://www.nwfusion.com/columnists/2004/072604musthaler.html for her overview.
You may need to get the lawyers involved to review the contract language and make sure your corporate interests are protected. IT malpractice is on the rise (see https://www.nwfusion.com/careers/2002/0408man.html) as consultants and vendors fail to deliver what they promised. It’s also smart to ask for source code escrow in case your vendor goes belly up.
Legal types offer a variety of tips for software licensing contracts at the following sites:
* Negotiating software license agreements in an economic downturn
https://www.eletra.com/ggalert/e_article000080805.cfm
* Negotiating the software license: Eight tips for the licensee
https://search.yahoo.com/search?p=%22negotiating+software%22&fr=FP-tab-web-t&toggle=1
* Negotiating software contractshttps://www.smthacker.co.uk/negotiating_software_contracts.htm * Ten tips for negotiating software license agreements
https://www.wnjip.com/E_Commerce_Spring_2002.html#Ten_Tips
Finally, don’t forget that maintenance poses another big cost component. Get tips on negotiating software maintenance agreements for updates and revisions at https://www.nwfusion.com/careers/2002/0218man.html
