Thursday, May 21, 2009

Technology licenses & agreements are killing your business.

Here's the thing: The technology agreements that legally bind your company are not merely onerous; they're downright deadly. And the most chilling factor is that most enterprises are not even aware that they're in trouble--frequently paying serious money for phantom value.

Don't believe me? Try this simple test: Look at the license for any item of software your company uses. Look under "Disclaimer of Warranty" for the phrase "fitness for use" and tell me what it says. Can't find it? Here's a hint...
The software publisher "...makes no warranty or representation, either express or implied, with respect to (the) software, its quality, performance, merchantibility, or fitness for a particular purpose...and you're assuming the entire risk of quality and performance..."
This clause is pretty much standard in nearly every operating system or software licensing agreement. It's meaning is clear:
This mission critical product doesn't have to do anything we said it was going to do. It can be completely defective and, when it fails to deliver value, it isn't our problem, it's yours.
Let me ask a simple question series. Maybe it will bring home the message.
  • Would you purchase a car with this warranty?
  • How about purchasing a ticket on a cross-country flight where the aircraft was covered under the same warranty?
  • Any chance you'd accept the services of a hospital or surgeon with this one?
  • Then why are you permitting the software industry players to force this clause on you?
I suggest you look over the Knowledge Briefings on the BizTechNet.org site covering Acquisition Criteria, Product Functionality, and/or Acceptance Testing. When you spend money--invest serious company revenue in a product that purports to deliver a specific value--you deserve to GET that value.

Is your enterprise in the business of financially supporting the technology industry vendors/suppliers? Or are you in business to deliver a specific product or service using the productivity tools provided by these vendors/suppliers? Are you working to improve your business, or theirs?

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