Thursday, May 14, 2009

Reduce Business Technology Costs: Avoid Superceding Licenses

We should all know better--but, for some odd reason, we don't. According to some industry experts, we fail to negotiate as much as 75% of software license agreements. As a result, the typical enterprise is leaking serious cash from the technology budget.
Real World - We gain as little as $1 in actual business value from every $14 we spend on technologies.
Consider the following risk to your budget:
  • You finally invest a little time negotiating a software license agreement. You get favorable terms and conditions as well as a decent price (decidedly NOT typical).
  • Six months later an employee downloads an update to the product and you discover that your carefully negotiated license has been superceded by a conveniently stealthy click wrap license.
Yes, Virginia, it happens quite frequently. The software industry is very aware that your employees and technical consultants rarely take the time to read license agreements. The result is a distinct set of considerably onerous clauses slipped quietly into alternative licenses that legally supercede your existing agreements.

For examples of how these alternative licenses can cause serious financial damage to your business, check out the brief article covering shrink wrap and click wrap embedded in the title link. (Sign in is necessary but it costs you nothing.)

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