Leasing Hardware? PAY Attention to the Lease Terms!

Because, if you PAY attention to the lease, you won't PAY penalties at end of lease. Or, if you have business technology money coming out of your ears, and you like spending unnecessary cash, you can ignore my suggestions...

The companies that lease hardware to people like you and me know full well that they're going to make some serious fun-money at the end of the lease. These folks are very aware that the odds are incredibly high you will fail to read, understand, or follow the terms of the agreement. Of equal importance, they know you will fail to monitor "end of lease" requirements. However it plays out, you'll be sending them some hefty un-budgeted checks.

To begin a lease value initiative, start with the big money issues:

1. Precisely when does your lease end? (Miss this date, by even a day, and pay an enormous penalty.)

2. Precisely what is the return process you will be expected to follow? (Fail to follow the process to the letter = pay penalties.)

3. At what date, or dates, must you begin the replacement initiative? (We ALWAYS wait until too late to begin this process - big penalties for being late as well as in disruption of operations while your techies scramble to catch up.)

4. Where is every single leased system and who is responsible for it? (Think you know where everything is located? Think again. Just go try and find a few systems today and consider the cost of this scramble if you wait.)

5. What hardware or software has been added to each system and how will the changes impact the lease terms? (In most cases, leased systems must be returned configured precisely as they were originally delivered. Think you'll remember?)

6. Create and follow - In Advance - a precise plan for for collecting, replacing, auditing, and returning every system covered in the lease. (If you do the planning and management, now, you'll pay a lot less later.)

Remember: The business technology leasing folks KNOW you are going to fail to follow even these basic common sense procedures. They are PLANNING on the penalties you will pay. (Try fooling them.) If you take nothing more than these simple steps, you will significantly reduce the costs, and increase the business value, of leasing technology systems.

Minimizing Costs & Risks of Business Technologies - Online Seminar Series

Free Online Knowledge Briefing - April 22nd, 2010

For over ten years, I have commented that we lose way too many of our technology dollars to essentially empty IT spending. Industry studies have consistently backed up my perspectives, with some actually placing losses at more than $10 for every $1 spent. There a plenty of purported solutions to this waste. Unfortunately, very few of them are designed to produce positive ROI without serious additional spending.

On April 22nd, 2010 I'll deliver the first of an online Knowledge Briefing Series covering a wide range of methods any company can use to minimize risks while putting the brakes on wasteful IT spending - without negative impact on your budget or operations.

Tired of the unnecessarily high costs & risks of business technologies? This is your chance to identify the life cycle technology asset management issues that create those problems and to walk through the simple, common sense, and cost effective procedures that you can use to begin saving serious IT dollars.

Each registered participant receives a customized Session Workbook to use in documenting delivered content. We'll add to the Workbook with each new online session we deliver.

Let's conduct a quick cost-benefit analysis...

The Costs?

• It's free...
• The methods are proven,
  
• I'm not selling you anything and,
  
• It's only a single hour out of your day...
  

The Benefits?
Your company could easily begin converting those all-too-frequently negative technology investments to gaining $5 (or more) in value for every $1 you spend.

You have absolutely nothing to lose and everything to gain.

Series intro URL: Minimizing Technology Costs & Risks, April 22.

Session One: Minimizing Exposure to Punitive Software Non Compliance Audits

Are You Watching the Secret ACTA Debacle?

Are you a business owner? An executive manager? Are you at all concerned about external controls over your business technologies? Does it bother you that your children have become easy audit targets for copyright compliance sharp practices?

Well, here's yet another threat to your so-called "peaceful use" options for literally any technology that can be covered under copyright laws. Even the European Parliament is threatening the European Union with legal action if the drafting group doesn't quit hiding details to the agreement.

Yet another draconian copyright law... Written in secret so the consumers won't understand until it's too late. Wonder what they're working so very hard to hide?

The ultra-secret Anti-Counterfeiting Trade Agreement (ACTA) is multinational in scope and continues to cruise under the radar of virtually everyone except a select number of copyright holder representatives.

As usual, this one is being instigated by the same folks who gave us the Digital Millennium Copyright Act (DMCA), the No Electronic Theft Act (NETAct), the Super Digital Millennium Copyright Acts (SDMCA), and who did their best to shove the Uniform Computer Information Transactions Act (UCITA) down our collective throats.

As I continue to suggest:

"If you don't wake up and become clearly aware of copyright reform activities, you will soon find out that what is being done isn't being done FOR you, it's being done TO you!"

And, yes, you should be pulling that blanket up over your eyes.

Update ACTA... More resources you need to read!

If you haven't followed up on my suggestion to look into the Anti-Counterfeiting Trade Agreement, here are several more links to perspectives you might want to consider. This thing is well out of hand and only through clear and effective public demands will the onerous terms of ACTA be avoided.

Excellent materials on the We Rebuild web site.

Free Software Foundation link on the Linux.com site HERE.

ComputerWorld, New Zealand HERE.

Great Statement by Mark Harris on ACTA Lemming-Brothers HERE

As I have said since the first attempts to pass DMCA and UCITA: "If we do not start monitoring what is being done in terms of special interest lobbying, we are ALL going to discover too late that what is being done is being done to us."

Once these laws, acts, regulations, and agreements are passed, they will be impossible to counter.

Anti-Counterfeiting Trade Agreement (ACTA) – DMCA & UCITA on steroids?

You say that you're too busy to follow pending legislation? Understandable. You were probably busy while the Uniform Computer Information Transactions Act (UCITA) and the Digital Millennium Copyright Act (DMCA) were under consideration, too. Yet... Both of these - as well as ACTA - have direct and serious implications for you and your business.

Well, just in case you are bored (or if you are at all concerned about your future access to the Internet) you may want to take at least a surface look at the latest attempt to establish more draconian oversight on the parts of the digital content providers. It's called the Anti Counterfeiting Trade Agreement (ACTA) and this one represents the absolute cutting edge in “stealth legislation.”

Quick Discussion?

• First, we'll take a very quick view of how easily stealth legislation comes into being.
• Next, we'll discuss UCITA, a basic example of stealth legislation in action.
• You'll also want to take a close look at the Digital Millennium Copyright Act. This second example of stealth legislation was more successfully accomplished by the special interest groups.
• Then, just so you aren't left hanging, we'll show how the example legislation will impact your business – AND how you can stonewall its influence.
• Finally, we'll take a very quick look at the latest stealth attempt and provide links you can follow to review further information.
  

Stealth Legislation!

• Occurs when special interest groups (and their lobbying groups) gain dominant access to willing political figures,
• The special interest groups “help assemble” legislative proposals that favor their interests,
• Actually “help” is a relatively benign word for an environment in which, sometimes, the special interest groups actually draft the proposed legislation,
• Once crafted, the legislation is either grafted on to another, less controversial, document, or it is quietly passed (usually late on a weekday evening) when the C-Span cameras (and public scrutiny) are focused elsewhere,
• The real key – an issue that should chill you to the absolute bone – is that these legislative acts are conducted very silently behind the scenes without the benefit of public oversight.
• You wake up one morning and discover that you are legally bound by a law you've never heard of.

Example of Stealth Legislation

Uniform Computer Information Transactions Act (UCITA)

• UCITA started out as a modification to the United States Code,
• The committee responsible for updating the Code refused to include the UCITA segment after closely reviewing both the document AND the process by which it was assembled,
• As far as content, UCITA would have made an enormous number of content provider sharp practices 100% legal,
• The “rights” of the technology consumer were simply not covered within UCITA in any manner,
• Link HERE for a quick review of the UCITA sharp practices.
• As to the manner in which the detailed language of UCITA came about, one witness reported that, during any session in which the public was invited to attend the review, the number of content industry lawyers & lobbyists in the speaking line outnumbered the public by 60 to 1.
• When the review committee refused to include the UCITA content in the updated U.S. Code, the digital content providers & their friends immediately began a focused effort to get the regulation passed at the individual state levels.
• UCITA was passed and is currently part of state law in Maryland & Virginia.
• When word of UCITA content finally leaked to the public, the groundswell of local opposition grew so rapidly that many states considered the UCITA regulation onerous enough to pass Anti-UCITA legislation.

How will UCITA get to you?

• Every significant contract and/or license includes a clause titled “Governing Law.”
• To counteract your rights under UCITA, the content provider simply cites Maryland or Virginia as the State of Governing Law.
• If your state does not have an Anti UCITA Law in effect, your relationship with that provider will be governed by UCITA. (For the moment, we'll assume your state does not have a legal UCITA barrier.)
• The only way to effectively counteract the UCITA threat is to read every technology-related agreement (Yes, licenses, too!) and strike out any attempt to make Maryland or Virginia the state of governing law.
• If your provider is attempting to insert this venue into its licenses you can be very certain that the supplier is aware of its powers under UCITA and intends to take advantage of those powers in your relationship.

Anti Counterfeiting Trade Agreement (ACTA)
As stealth legislation, ACTA is building an entirely new methodology. This time around, instead of appealing to individual legislators, the special interest groups have managed to serve their uniquely brewed fruit punch to the executive leadership of multiple countries.

The result? In its incarnation as a “Trade Agreement” ACTA does not have to be approved – or even reviewed – by elected legislators. There exists virtually no oversight in terms of content, focus, or legality. As an agreement between national leadership, ACTA becomes a sort of binding international regulation by default.

In keeping with its stealth legacy, ACTA has been maintained as a carefully guarded secret from the public. Unbelievable as it seems, in the United States, details of this agreement are being hidden behind a secrets of “National Security” blanket. Attempts to gain access to working documents under the Freedom of Information Act have been routinely met with refusals citing National Security. The U.S. Trade Office, which seems to be spearheading the agreement.

Even more chilling are the number of digital rights group representative who HAVE had access to the language of the agreement. As with DMCA, it appears that the majority of input is being delivered by digital content special interest groups – versus consumer rights advocates. Reading between the lines should bring to mind the intense efforts of the software, music, and motion picture groups in their efforts to gain more control over access, distribution, and use of related products.

For a list of private sector individuals who have gained access follow this LINK to the Knowledge Ecology International web site. These folks appear to have the most comprehensive review.

I'd love to tell you more about this interesting little load of nitro but, frankly, there just isn't any clear information to go on. So, instead, my goal is to just get you moving forward toward other web sites – many of which focus on tracking these types of activities. So, here's a list of links to check out:

Wired Magazine – Always one of my favorite sources.

http://www.wired.com/threatlevel/2009/12/feds-fear-acta-scrutiny/

http://www.wired.com/threatlevel/2009/03/obama-declares/

Electronic Frontier Foundation – Another great resource.

http://www.eff.org/search?text=ACTA

http://www.eff.org/deeplinks/2009/11/leaked-acta-internet-provisions-three-strikes-and-

Public Knowledge -

http://www.publicknowledge.org/issues/acta

Virtual Review -

http://virtualreview.org/tech/zoom/1298179/report-us-fears-public-scrutiny-would-scuttle-acta

U.S. Trade Representative -

http://www.ustr.gov/sites/default/files/uploads/factsheets/2009/asset_upload_file917_15546.pdf

European Commission -

http://ec.europa.eu/trade/creating-opportunities/trade-topics/intellectual-property/index_en.htm

http://ec.europa.eu/trade/creating-opportunities/trade-topics/intellectual-property/anti-counterfeiting/

UCITA Links – Be careful with some of these. Some were (are) developed by fruit punch salesmen for public consumption. Review multiple perspectives before you take action.

Software Asset Management Services, Inc. - Good info and more links to UCITA – I can say that because I wrote them...

http://www.samsrv.com/ucita.htm

Americans for Fair Electronic Commerce Transactions (AFFECT) – Good resource.

http://www.ucita.com/what_problems.html

Bad Software – Interesting perspectives

http://www.badsoftware.com/uccindex.htm

The “party line”

http://www.ucitaonline.com/

New to technology asset management? Want to succeed? Here are some things to consider.

Technology asset management - software asset management - It's all about putting a stop to status quo - putting a stop to "This is the way it's done...". If you are a "go along with the program" kind of person, you may get the job but you probably won't get the results. If, on the other hand, you are a "cut the the core" kind of individual, you probably have the capabilities to get the results but you probably won't get the chance to do the job.

Interesting quandary? Been there. Done that.

So here's my challenge to you: If you are willing to step up to the plate and change the asset management world, I'll help you all I can. How will you know if joining forces with "The Network!" and "The Institute!" would be right for you? Measure against your honest responses to the following items - don't present your corporate face - present your OWN. Answer as a buyer and use the word "Agree" for "I accept" or use the word "Disagree" for "I'll be taking this acquisition to your competitor" (I'll interpret your score when you have finished...)

1. This software contract is not negotiable...

2. The hardware agreement is not negotiable...

3. The provider reserves the right to change the agreement at will and without notice...

4. This product is sold "as is"...

5. You can only purchase a new computer with this specific operating system...

6. Our product is the only one of its kind...

7. Our services are supplier-neutral...

8. Subscription-based licensing is less costly than perpetual licensing...

Remember, "Agree" if you would accept or believe the clause or statement, "Disagree" if you would not accept or believe. Once you are finished, I'll explain how we can help you create a more cost-effective technology environment.

Here's the bottom line:

If you answered "Agree" to ANY of these items, you are an easy target for over-priced & under-delivered technology goods and services. You are a victim of the "this is the way it's done" mindset. You'll pay whatever the supplier asks and accept whatever product they plop down on your desktop. (Scary, isn't it?)

If you answered "Disagree" on these items, there is hope for you... You are on the road to getting actual value for your tech dollars. Consider:

1. This software contract is not negotiable...

   1. Bull. While the suppliers want you to THINK this, it isn't true. If it is, you need to find new suppliers.

2. The hardware agreement is not negotiable...

   1. Wanna bet? Re-read the item above.

3. We reserve the right to change the agreement at will and without notice...

   1. No... You do not and you WILL not.

4. This product is sold "as is"...

   1. Wrong. I purchased this product to perform specific tasks. If you cannot back the product - in writing - to do those tasks, don't come here trying to sell it.

5. You can only purchase a new computer with this specific operating system...

   1. No. That's you're agreement with the software publisher. You make money on every one of THEIR operating systems you force consumers to accept. There are alternatives. I want to know what they are & I do NOT expect to pay more to select an alternative.

6. Our product is the only one of its kind...

   1. Not in THIS century. There are plenty of alternatives that fit my needs & I'm perfectly willing to move to one of your competitors.

7. Our services are supplier-neutral...

   1. If a supplier taking money from a specific systems or software company, or if the supplier is investing money in becoming "certified" through a specific company then I'd be pretty ignorant to believe you weren't going to recommend (push?) that company's goods or services.

8. Subscription-based licensing is less costly than perpetual licensing...

   1. Let's see... A perpetual license means I pay one fee and use the product until "I" chose to change or I move to a subscription agreement, paying you a repetitive yearly fee to use whatever product "YOU" are pushing at the time. If version 1 works for me, I shouldn't have to move up to versions 2, 3, 4, and 5 just because you quit supporting them. (I rarely used your support anyway.)

These are VERY simple responses to these very common statements and/or licensing clauses. (Don't believe me? Take time out to read three licenses for products on your computers. Many of these clauses are going to be right there in your hand & you're already legally bound to them.)

Businesses are constantly spending too much for too little in terms of software assets, hardware assets & support / maintenance agreements. Not only do we spend too much, we have also been carefully trained to accept whatever products or services are slapped with a "cutting edge" label. If you want to get serious value for your technology dollar, you need to be part of The Network and The Institute.

Our core purpose is to teach you - YOU - how to change your relationships with technology suppliers. If you do not get proactive on this you'll continue to be a helpless victim of tech sharp practices in licensing & related agreements. Get what you expect & only pay for what's delivered.

Reducing Costs With Software As a Service? (SaaS) Just Like Your Cell Phone Bills!

I know that I've referred to Software as a Service (SaaS) as the prelude to a wide variety of onerous licensing tactics--and substantial hikes in technology spending. The most serious problem - and one we should ALL fear - is that a great deal of money is being spent to convince us that SaaS will reduce IT costs.

Answer me this: Since when does ANY software industry player want us to reduce spending on their products? Remember how well Software Advantage worked out (For Microsoft--not for the consumer)?

If you think software costs are out of line with value, here's another concept to consider:

• You're aware of how you get to pay for every minute; every message; and, seemingly, every breath you take on your cell phone, right?
• You know how the cell companies do business, right? How about AT&T long distance?
  
• Now, picture the same model in terms of software...

1. First they arrange to completely OWN the access - you just pay to use it;
2. They initially charge a flat rate per user - Not much, but then again, we want EVERYONE completely addicted as quickly as possible;
3. After you are hooked, and the costs to back out are prohibitive, they begin "adjusting" the rates to include per minute charges; per user charges; bandwidth surcharges; named user accounts; and so on...
   
4. Then they move to additional service fees (as in the banking industry); access fees; data recovery fees; data storage fees; billing fees; license surcharges; Billy's vacation fees; and so on...
   

Eventually, your software bill will read like a cell phone bill on a bus load of invoicing steroids - along with a "screw with us and we cancel your access" attitude. How quickly would your business drown without access to your computer systems? THAT is the question you need to ask - and develop honest answers for - prior to falling into the SaaS quagmire.

Oh...wait! Mr. (or) Ms. Software Billionaire says, "WE would never do that to our customer base." Right...