- #Moneywell management pays vendors how to
- #Moneywell management pays vendors software license
- #Moneywell management pays vendors software
Vendors tend to have the "home field advantage" through their intimate familiarity with contract terms, so customers need to learn how to refocus the conversation on the long-term relationship, Forrester's Jones said. It can also make sense to have a third party come in periodically to audit your compliance, especially if you are planning to defect from a vendor, he said.
#Moneywell management pays vendors software
Small companies can get by tracking their license compliance manually, but "if you have more than a handful of software agreements, it’s probably money well spent to invest in some sort of software asset management system," Scavo said.
Guarente's firm asks clients to think hard about three things: "What do you own, what are you using, and what's the difference?" "Companies need to take their software licensing seriously," Guarente said. Vendors' legal threats in this area aren't likely to stand up in court, but few companies have been willing to take the chance, Jones said. "I've heard from a customer that had been buying from IBM for 50 years, and they said, 'No more.'" Vendors may like the revenue boost they get from audits, but in the long run, "it can kill off opportunity," he said.
Many licensing and audit groups are siloed off from the rest of the vendor, too, so they don't see the damage their efforts can inflict on customers' long-term relationships with the company, Jones said. "They claim great adoption of new cloud products, but actually it's coming from these audit threats," Jones said. The problem has become particularly acute as vendors have begun shifting their marketing and sales efforts to the cloud, even as they continue to rely on traditional license revenue to keep investors happy. The vendor thus far has been uncooperative in allowing them to cut back their license count." "Although they are back on a growth path, they are paying for more ERP licenses than their current user headcount requires. "I’m working with one client right now that went through a significant downsizing several years ago," he noted. Organizations typically do not have enough licenses for some software, but they also often pay maintenance on software they are underutilizing, Scavo said.
#Moneywell management pays vendors software license
A full 65 percent of enterprises surveyed for the report have faced a software license compliance audit by a vendor within the past year 44 percent paid $100,000 or more in so-called "true-up" costs as a result. "They're sort of like, don't ask, don't tell, thanks for the money."Ī Tuesday report from software asset management company Flexera underscores those trends. SAP's licensing terms, for example, include the squishy concept of "indirect access." Oracle often zeroes in on the ambiguities associated with virtualization.Įven if a company has controls in place, "they can hit you with something spurious, tentative or made up," agreed Duncan Jones, a vice president with Forrester. Licenses are often unclear in many ways: Some fees are based on the number of users, others on CPUs, others on transaction counts, and others on different metrics altogether. "Some go so far as to sue their customers for years or decades of alleged underpayment." "As software vendors hunt for top-line growth, they turn to license audits as a means of generating additional revenue," said analyst Frank Scavo of Strativa. The message: Sign that contract, and those issues will be overlooked. "They're definitely using audits to get leverage with their clients."įor example, a vendor may question the company's compliance in one area and use that as an excuse to call for a brand-new cloud contract. "Vendors are putting more pressure on customers," said Craig Guarente, co-founder and CEO of Palisade Compliance, which helps Oracle customers negotiate with the database giant.
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