Archive for the ‘software licensing’ Category

Polls And Surveys: Insider Insights™ – Customer Centric Cloud Agreements

Annual Evaluation On SaaS Satisfaction Begins This Fall The Software Insider Insights™ solution evaluation and buyer comparison tool will launch this Fall.  The first report focuses on Customer Centric Cloud Agreements - Software-as-a-Service (SaaS).  This evaluation will:
  • Identify the leading seller/vendors delivering SaaS based applications that adhere to the spirit of the cloud
  • Evaluate seller/vendors performance against the latest provisions in the Customer Bill of Rights: Software as a Service (see Figure 1)
  • Recognize seller/vendors who deliver a customer centric approach to SaaS solutions.
Invited Vendors Represent Today's SaaS Leaders The 2010 Customer Centric Cloud Agreements- SaaS evaluation ranks the most popular vendors by inquiry and contract frequency.  The invited participants also qualified based on overall total number of subscribers.  The current list of evaluated vendors will include:
  • Ariba
  • Concur
  • Epicor Lite
  • FinancialForce
  • Intacct
  • Microsoft Dynamics CRM OnDemand
  • NetSuite
  • Oracle Siebel OnDemand
  • Plex Systems
  • RightNow Technologies
  • Salesforce.com
  • SAP ByD
  • SuccessFactors
  • Taleo
  • Ultimate Software
Your POV: Your Input Makes The Difference As part of the Insider Insights evaluation process, input from users will be incorporated into the evaluation process.  Please take the time to complete this short 10 question survey.  As an added incentive, 5 respondents will be randomly chosen on September 30th to win a free 30 minute advisory call with R "Ray" Wang to be used by 2010. Share with us your input here:
Resources And Related Research: 20100810 A Software Insider's POV - R "Ray" Wang - "Tuesday’s Tip: 10 SaaS/Cloud Strategies For Legacy Apps Environments" 20100809 A Software Insider's POV - R "Ray" Wang - "Research Report: The Upcoming Battle For The Largest Share Of The Tech Budget (Part 2) – Cloud Computing" 20100621 A Software Insider's POV - R "Ray" Wang - "Research Report: How SaaS Adoption Trends Show New Shifts In Technology Purchasing Power" 20100322 A Software Insider’s POV – R “Ray” Wang -”Understanding The Many Flavors Of Cloud Computing/SaaS” 20091222 A Software Insider’s POV – R “Ray” Wang “Tuesday’s Tip: 10 Cloud And SaaS Apps Strategies For 2010″ 20091208 A Software Insider’s POV – R “Ray” Wang – “Tuesday’s Tip: 2010 Apps Strategies Should Start With Business Value” 20091012 A Software Insider’s POV – R “Ray” Wang – “Research Report: Customer Bill of Rights – Software-as-a Service” 20090714 Sandhill.com – R “Ray” Wang – “Opinion: Moving to a SaaS Offensive” 20090602 A Software Insider’s POV – R “Ray” Wang ” Tuesday’s Tip: Now’s The Time To Consider SaaS Software Escrows” 20081028 A Software Insider’s POV – R “Ray” Wang “Tuesday’s Tip: SaaS Integration Advice” Reprints Reprints can be purchased through the Software Insider brand.  To request official reprints in PDF format, please contact r@softwareinsider.org. Disclosure Although we work closely with many mega software vendors, we want you to trust us.  Epicor, Microsoft, Oracle, RightNow, SAP, and Ultimate our currently clients of Altimeter Group but not Insider Associates.  For the full disclosure policy please refer here. Copyright © 2010 R Wang and Insider Associates, LLC. All rights reserved.

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Keeping Up With The Latest In Microsoft Licensing Buy casodex online cheap, Given the vast array of Microsoft products and licensing categories, an organization may often feel overwhelmed by Microsoft's policies.  While there may be some complexity, these series of posts are designed to provide up to date commentary and analysis on new programs as they become available.  Feel free to reach out in the comments section with any questions, comments, and clarifications on the analysis.

Product And Program News


  • Enrollment For Application Platform (EAP) Updates. What is it?:  The new updates include SQL Server 2008 R2, Zometa pharmacy, Visual Studio 2010, and SharePoint Server 2010.  SQL Server prices for EAP go up with Standard receiving a 25% hike and Enterprise Editions a 15% increase.  Customers who buy Visual Studio products with Software Assurance (SA) receive Microsoft Development Network (MSDN) subscription benefits.  SharePoint Server for Internet Sites is updated for SharePoint Server for Internet Sites Enterprise.  Who's impacted?: Customers who are standardizing application platforms on products such as BizTalk Server, SharePoint Server, SQL Server, cytoxan en ligne afin, and Visual Studio .  When's it effective?: This program begins May 3rd, 2010.

    Point Of View (POV): EAP is a program for customers interested in standardizing on the Microsoft Server Platform.  Price savings for new licenses range from 15% on Standard Edition to 40% on Premium Editions.  Overall, Cheap gleevec online, the program makes sense because it allows customers unlimited usage with annual or three year true up terms that create a flexible approach towards standardizing on Microsoft.  Other benefits include rights to the latest version of products and the flexibility to deploy unlimited incremental units.  Customers also receive 100 percent Software Assurance (SA) coverage on footprint for included products.  While the price increase on SQL Server is definitely not welcomed, this may be the time to look at Software Assurance (SA).  The new version does come with additional features such as data compression, Master Data Services, StreamInsight, köpa rabatterade arimidex, and PowerPivot.

    On the Visual Studio front, Capecitabine prescription, customers will notice the replacement of the Visual Studio Developer Tools group with Visual Studio Ultimate with MSDN, Visual Studio Premium with MSDN and Visual Studio Professional.  Ultimate and Premium versions now count towards the minimum requirements.  Users also receive access to Visual Studio Test Professional, Visual Studio Team Explorer Everywhere.  Finally, the new plan replaces the Visual Studio Test Load Agent with Visual Studio Load Test Virtual User Pack.




  • Office 2010 and "Wave 14" Products Launch, District of Columbia DC D.C.. What is it?: Office 2010 suite, Project 2010, Iressa cheap, Sharepoint 2010, Visio 2010, and the updated ECAL suite are now in the Volume Licensing channel in the May 2010 price list. Who's eligible?: All customers. When's it effective?: This program starts in the retail channel (FPP) when products become General Availaiblity (GA) in June 2010.

    POV: Movement to the Volume Licensing channel makes sense as Office 2010 and "Wave 14" products represent a core customer purchase.  Keep in mind only Office Professional Plus 2010 and Office Standard 2010 qualify for Volume Licensing.  Office Home 2010 and Office Professional 2010 do not qualify.


  • Forefront Protection 2010 For SharePoint Available May 2010. What is it?: Forefront Protection is added to the Volume Licensing Price List. Who's eligible?: All customers in standalone purchase, Forefront Protection Suite, and part of the Enterprise CAL suite. When's it effective?: The program begins May 2010.

    POV: Forefront has improved and new security partnerships keep users from uploading or downloading content that may contain security breaches, malware, out-of-policy content, to SharePoint libraries.  Users should do a quick cost comparison before moving this into the Enterprise CAL suite as standalone purchases in some cases may prove to be more flexible during the initial trial phase.



Microsoft Promotions Update

The following are new promotions that have been introduced as of May 1, 2010:


  • Enterprise Desktop and Professional Desktop, buy casodex online cheap. What is it?: Savings on Microsoft Enterprise Desktop, billige casodex apotek, Professional Desktop, Enterprise Desktop with Microsoft Desktop Optimization Pack (MDOP) and Professional Desktop with MDOP.  Who's eligible?: Commercial and Government customers who qualify as Microsoft Open Value Level C (OV Level C) customers.  When's it effective?: This program starts May 1st, Gleevec online, 2010 and expires June 30th, 2010.

    POV: To qualify as an OV Level C customer, customers must have an Enterprise agreement for more than 250 desktops PC's governed by a company wide agreement.   Customers who meet the qualifications for OV Level C typically receive an initial purchase discount up to 15% discount.   However, customers must purchase from a value added reseller (VAR).  Interested customers should hurry as the general OV Level C program originally expired April 3rd, online evista, 2010 but has been extended to June 30th, 2010.



The following are promotions ending on June 30th, Comprar epogen de descuento, 2010:

  • Open Value Subscription Expanded Up to DateWhat is it?: Upgrade to Microsoft Office 2010 or Windows 7 for customers who sign a new Open Value Subscription or Open Value Subscription for Government agreement.  Who’s eligible?: The Open Value Subscription program up-to-date promotion for existing desktop platform licenses of current (N) and previous (N-1) versions has been expanded to include N-2 versions: Microsoft Office Professional XP, Microsoft Office Small Business XP, and Microsoft Office Standard XP. When’s it effective?: Available now – the licenses launched worldwide in January 2010.

    POV: If there’s a compelling need to move to Office 2010 and Windows 7 and an Open Value Subscription is on the table, evista for sale, this represents a good incentive to upgrade to Microsoft Office 2010.




  • Rental Rights. What is it?: Rights for organizations to rent, Cytoxan price, lease, or outsource PC’s to third parties with qualifying Windows operating system or Microsoft Office system software.  Who’s eligible?: Open License, Select License, and Select Plus customers, cheap iressa online legally.   When’s it effective?: The program is effective from now till June 30th, 2010.

    POV: Based on current license rights, Purchase evista online, office equipment leasing companies, PC leasing companies and other businesses which provide PCs to operators of hotel and airport kiosks, internet cafés, and business centers, ordering epogen from canada, can not rent, lease or outsource the Microsoft software on the PCs to end users.  Microsoft began a program in January 2010 to offer these rental, Buy casodex without prescription, leasing, and outsourcing rights for these businesses.  The program modifies the licensing rights for this type of third party end user situation.  The rights are provided through a one-time license transaction.  The rights are non-transferable and endure for the term of the underlying software license or life of the hardware they are attached to.




  • Windows HPC Server 2008 Promotion. What is it?: Customers who purchase Windows Server HPC Edition operation system server license and Software Assurance (SA) packs can save up to 25%.  Who’s eligible? Buy casodex online cheap, : customers must be on Open License, Open Value, Select License, Select Plus, and Enterprise Agreements.  When’s it effective?: April 1, 2010 to June 30, 2010.

    POV: Microsoft’s been beefing up its maintenance programs.  Today’s SA packs include more than upgrade rights.  Services range from cold back ups for disaster recovery, home use programs, E-learning, new version rights, to spread payments.   Microsoft does not require SA with purchase.  Customers who seek maintenance should assess their business requirements first and then determine what features and packs within SA to select.  Make sure you only buy maintenance for what you need.




  • Open Value Level C 15% Discount. What is it?: A 15% discount for an initial Enterprise product order.  Who’s eligible?: Customers who have an Enterprise agreement for more than 250 desktops PC's governed by a company wide agreement   When’s it effective?: The program is effective from now till June 30th, 2010.

    POV: Interested customers should hurry as the general OV Level C program originally expired April 3rd, casodex online kopen, 2010 but has been extended to June 30th, 2010.  Customers must purchase from a value added reseller (VAR).




  • Simplify And Save: Discount For Renewal Into Open Value. Online cytoxan, What is it?:  Renewing customers can save up to 15% on Software Assurance for the entire duration of an Open Value agreement for all products (i.e. all three years).  Who’s eligible?:  Customers with SA renewable products on the Open Value price list qualify.  When’s it effective?: Until June 30, 2010.

    POV: Open Value agreements only make sense if a customer wants to commit to a 3-year time frame.  Benefits include anytime upgrades, a single agreement, cheap gleevec from canada, and the availability to move to client access licenses (CAL) instead of choosing between Small Business or Desktop Professional platforms.



The Bottom Line For The Customer - Many Promotions Expire Due To June 30th Fiscal Year End

As with any other software vendor, year end brings an end to promotions and a frenetic rush to meet quarterly and yearly forecasts.  If there's any lesson learned from this past year, Köpa rabatterade evista, vendors continue to incentivize promotions to grow maintenance revenue.  Microsoft is no exception as most promotions seek to increase customer base penetration.  Customers should pay close attention to how often upgrades, service requests, and license usage match with overall maintenance contracts.  Asses whether value has been achieved between the overall apps strategy and actual contract usage.  Keep an eye on reducing shelf ware and overall maintenance costs per employee.  And most of all focus on the ratio of business impact and cost of delivering IT services.

Your POV

What do you think of Microsoft's recent promotions?  Are you challenged trying to manage your Microsoft Licenses, comprar capecitabine de descuento. Do you find the licensing too simple or too complex?  Add your comments to the discussion or send on to rwang0 at gmail dot com or r at softwareinsider dot org and we’ll keep your anonymity, buy casodex online cheap.

Please let us know if you need help with your Microsoft and overall apps strategy and contract negotiations strategy.  Here’s how we can help:


  • Providing contract negotiations and software licensing support

  • Demystifying Microsoft licensing

  • Assessing SaaS and cloud

  • Evaluating Cloud integration strategies

  • Assisting with legacy ERP migration

  • Planning upgrades and migration

  • Performing vendor selection

  • Renegotiating maintenance


Related resources and links
20100428 Software Insider - R "Ray" Wang "News Analysis: Microsoft Licensing Update – April 2010"

20100222 Monday’s Musings: Why Users Should Preserve Their Third Party Maintenance Rights

20091008 Deal Architect – Vinnie Mirchandani “Third Party Maintenance Is Really 4 Decades Old”

20071120 News Analysis: Too Early to Call the Death of Third Party Maintenance

20090210 Tuesday’s Tip: Software Licensing and Pricing – Do Not Give Away Your Third Party Maintenance And Access Rights

20090709 Tuesday’s Tip: Do Not Bundle Your Support and Maintenance Contracts.

20090622 News Analysis: Infor Flex Reflects Proactive Maintenance Policy

20090516 News Analysis: Rimini Street Launches Third Party Maintenance for SAP

20090504 News Analysis: Oracle Waives Fees On Extended Support Offerings

20080909 Trends: What Customers Want From Maintenance And Support

20080215 Software Licensing and Pricing: Stop the Anti-Competitive Maintenance Fee Madness

20090428 News Analysis: SAP and SUGEN Make Progress on Enterprise Support

20090405 Monday’s Musings: Total Account Value, Halvalla gleevec apteekki, True Cost of Ownership, And Software Vendor Business Models

20090330 Monday’s Musings: It’s The Relationship, Stupid. (Part 2) – Stop Slashing The Quality Of Support And Maintenance

20090324 Tuesday’s Tips: Five Simple Steps To Reduce Your Software Maintenance Costs

20090223 Monday’s Musings: Five Programs Some Vendors Have Implemented To Help Clients In An Economic Recession

20081012 Monday’s Musings: 5 Steps to Restoring Trust in the Vendor – Customer Relationship

20091012 Research Report: Customer Bill of Rights – Software-as-a Service

20090912 News Analysis: Siemens Cancels SAP Maintenance Contract

20090910 Tuesday’s Tip: Note To Self – Start Renegotiating Your Q4 Software Maintenance Contracts Now, ordering casodex online.


Disclosure

Although we work closely with many mega software vendors, we want you to trust us more.  Microsoft is currently a retainer client of Altimeter Group but  not a client of Insider Associates, Cheap epogen without prescription, LLC.  For the full disclosure policy please refer here.

Copyright © 2010 R Wang and Insider Associates, LLC. All rights reserved.

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Welcome To The First Of A Series Of Posts On Microsoft Licensing Updates. Buy evista no prescription, Given the vast array of Microsoft products and licensing categories, an organization may often feel overwhelmed by Microsoft's policies.  While there may be some complexity, these series of posts are designed to provide up to date commentary and analysis on new programs as they become available.

Product And Program News


  • Price Increase For Office Professional Plus 2010. What is it?:  Microsoft increases Office Professional Plus 2010 by 5%.  Who's impacted?: Customers with Professional Desktop and Professional Desktop with Microsoft Desktop Optimization Pack (MDOP) pricing.  Suite pricing increases between 3 and 4%.  When's it effective?: This program begins May 1st, buy generic iressa, 2010.

    Point Of View (POV): The recent price increase may be the result of revenue capture for new features in Communicator, New Hampshire NH N.H., Infopath, and Sharepoint Workspace.  The good news - Office Professional Plus 2010 includes the additional features of Office Enterprise 2007.  The current Office Professional Plus list price with the price increase is still lower than the list price of Office Enterprise 2007.  For those who paid less than list for Office Enterprise 2007, they should look at other VLP programs for bundling discounts to offset this price increase.




  • Microsoft Business Productivity Online Suite (BPOS) Goes Global, Montana MT Mont.. What is it?: 17 new markets and 39 countries and regions gain BPOS.  BPOS includes E-mail and calendar, Discount iressa, email coexistence and migration tools, document collaboration and workspaces, web conferencing, epogen online kopen, Microsoft Online Services Administration Center, Zometa farmacia a buon mercato, and Microsoft Online Services Sign In Application. Who's eligible?: All customers. When's it effective?: This program starts April 14, 2010.

    POV: The new offering shows Microsoft's commitment to pushing out its Cloud initiatives.  At Microsoft Convergence, Stephen Elop stated that more than 90% of R&D will be focused on cloud services.  Customers on BPOS-D gain Office Communications Online, Arkansas AR Ark., giving them Voice capabilities in the cloud.




  • Academic Volume Licensing Programs Gain Electronic Software Distribution (ESD). Tennessee TN Tenn., What is it?: Customers can download software over the Internet. Who's eligible?: Customers on Campus and School Agreement (CASA) with Faculty and Staff at Home rights or  Student Option; and Select License/Select Plus for Academic with Faculty and Staff Work at Home rights or Student Select and Student Select Plus.  When's it effective?: North America and EMEA customers gain ESD now.  Latin America expected in May 2010.  APAC estimated date is Q1 FY11.

    POV: Eligible customers should take advantage of this program to avoid the headaches of managing physical software delivery.  Customers can also benefit from the tax free provisions of Internet distribution of software.




  • Microsoft GeoSynth Launch. What is it?: The off-line version of the PhotoSynth platform will be available in a subscription based pricing format for Specialty Server configuration based on users and a single-user desktop version. Who's eligible?:  Customers on Volume Licensing programs for Campus and School Agreements, Enterprise Agreements, Open Value, cheapest gleevec price, Open Value Subscription, Billig evista apotek, Select Agreements, and US Government. When's it effective?: This program starts May 1, 2010.

    POV: The subscription pricing program makes sense for users testing out the off line product.  Longer term, αγοράζουν φτηνά gleevec, institutional customers may want to seek other pricing options such as perpetual license, Buy gleevec without prescription, perpetual license with upgrade rights, and enterprise agreements.



Microsoft Promotions Update

The following are new promotions that have been introduced


  • Windows HPC Server 2008 Promotion. What is it?: customers who purchase Windows Server HPC Edition operation system server license and Software Assurance (SA) packs can save up to 25%.  Who's eligible?: customers must be on Open License, Open Value, Select License, Select Plus, and Enterprise Agreements.  When's it effective?: April 1, 2010 to June 20, 2010.

    POV: Microsoft's been beefing up its maintenance programs.  Today's SA packs include more than upgrade rights.  Services range from cold back ups for disaster recovery, home use programs, E-learning, new version rights, to spread payments.   Microsoft does not require SA with purchase.  Customers who seek maintenance should assess their business requirements first and then determine what features and packs within SA to select.  Make sure you only buy maintenance for what you need.



The following promotions are now extended past June 30, 2010:

  • Open Value Subscription Expanded Up to DateWhat is it?: Upgrade to Microsoft Office 2010 or Windows 7 for customers who sign a new Open Value Subscription or Open Value Subscription for Government agreement.  Who's eligible?: The Open Value Subscription program up-to-date promotion for existing desktop platform licenses of current (N) and previous (N-1) versions has been expanded to include N-2 versions: Microsoft Office Professional XP, Microsoft Office Small Business XP, and Microsoft Office Standard XP, buy evista no prescription. When's it effective?: Available now - the licenses launched worldwide in January 2010, φτηνές φαρμακείο capecitabine.

    POV: If there's a compelling need to move to Office 2010 and Windows 7 and an Open Value Subscription is on the table, Kjøp Discount gleevec, this represents a good incentive to upgrade to Microsoft Office 2010.




  • Rental Rights. What is it?: Rights for organizations to rent, lease, order epogen online legally, or outsource PC's to third parties with qualifying Windows operating system or Microsoft Office system software.  Who's eligible?: Open License, Cheap zometa online without prescription, Select License, and Select Plus customers.   When's it effective?: The program is effective from now till June 30th, farmacia gleevec barato, 2010.

    POV: Based on current license rights, Maine ME Me., office equipment leasing companies, PC leasing companies and other businesses which provide PCs to operators of hotel and airport kiosks, internet cafés, Massachusetts MA Mass., and business centers, Oregon OR Ore., can not rent, lease or outsource the Microsoft software on the PCs to end users.  Microsoft began a program in January 2010 to offer these rental, leasing, cheap capecitabine online cheap, and outsourcing rights for these businesses.  The program modifies the licensing rights for this type of third party end user situation.  The rights are provided through a one-time license transaction.  The rights are non-transferable and endure for the term of the underlying software license or life of the hardware they are attached to.



The following promotion is now extended past September 30, Buy arimidex without prescription, 2010:

  • Forefront Online Protection for Exchange. What is it?: Customers can receive up to a 30 percent savings on Forefront Online Protection for Exchange per-device and per-user monthly subscription licenses.  Who's eligible? Buy evista no prescription, :  Open Value, Microsoft Open Value Subscription, Microsoft Select License, Microsoft Select Plus, Microsoft Enterprise Agreement, Microsoft Enterprise Subscription Agreement, Microsoft Campus Agreement, and Microsoft School Agreement customers.   When's it effective?: The program is effective from now till September  30th, 2010.

    POV: Microsoft continues to seek additional revenue sources via its Microsoft Online Services division, where to buy cheap casodex. This offer makes sense for customers who are looking for a hosted solution to protect from spam, Comprare epogen sconto, to catch phishing scams, to enforce policies, and to deliver disaster recovery.  While other services may be more comprehensive, cheap arimidex online cheap, Forefront Online Protection provides a suite approach to a common problem with Exchange.



The following are promotions ending on April 30th, 2010:

  • Microsoft Office System Software Assurance Renewal. What is it?:  Discounts on SA renewals for Microsoft Office Enterprise 2007, Microsoft Office Professional Plus 2007, Microsoft Office Standard 2007, and the Microsoft Professional Desktop Platform.  Who's eligible?: Open Value, Select License, and Select Plus customers. When's it effective?: This program ends April 30th.

    POV:
    Microsoft's been beefing up its maintenance programs.  Today's SA packs include more than upgrade rights.  Services range from cold back ups for disaster recovery, home use programs, E-learning, new version rights, to spread payments.   Microsoft does not require SA with purchase.  Customers who seek maintenance should assess their business requirements first and then determine what features and packs within SA to select.  Make sure you only buy maintenance for what you need.



  • Windows 7 Professional Upgrade, buy evista no prescription. What is it?: Upgrades to Windows 7 Professional operating system—with or without Microsoft Software Assurance for Volume Licensing—and Windows 7 Professional with the Microsoft Desktop Optimization Pack (MDOP) for Software Assurance upgrade licenses when acquired with Software Assurance (at full price).   Who's eligible?:  Open License, Open Value, Select License, and Select Plus customers with qualifying Windows desktop operating system licenses.  When's it effective?: This program ends April 30th.

    POV: This program should be considered for those who paid full price for SA in order to capture full ROI on existing agreements



The Bottom Line For The Customer - A Good Navigator Can Demystify The Complexity In Microsoft Licensing

Though Microsoft continues to make strides in simplifying its software licensing policies, massive adoption by all parts of an organization often require greater coordination and up to date information.  Customers gain time to value when working with an expert who has both an understanding of Microsoft's product strategy and licensing practices.  Software contract negotiations must tie back to both organizational and application strategy.

Your POV

What do you think of Microsoft's recent promotions?  Are you challenged trying to manage your Microsoft Licenses. Do you find the licensing too simple or too complex?  Add your comments to the discussion or send on to rwang0 at gmail dot com or r at softwaresinsider dot org and we’ll keep your anonymity.

Please let us know if you need help with your overall apps strategy and contract negotiations strategy.  Here’s how we can help:


  • Demystifying Microsoft licensing

  • Assessing SaaS and cloud

  • Evaluating Cloud integration strategies

  • Assisting with legacy ERP migration

  • Planning upgrades and migration

  • Performing vendor selection

  • Providing contract negotiations and software licensing support


Related resources and links
20100606 Software Insider – R “Ray” Wang “News Analysis: Microsoft Licensing Update – May/June 2010″

20100222 Monday’s Musings: Why Users Should Preserve Their Third Party Maintenance Rights

20091008 Deal Architect – Vinnie Mirchandani “Third Party Maintenance Is Really 4 Decades Old”

20071120 News Analysis: Too Early to Call the Death of Third Party Maintenance

20090210 Tuesday’s Tip: Software Licensing and Pricing – Do Not Give Away Your Third Party Maintenance And Access Rights

Buy evista no prescription, 20090709 Tuesday’s Tip: Do Not Bundle Your Support and Maintenance Contracts.

20090622 News Analysis: Infor Flex Reflects Proactive Maintenance Policy

20090516 News Analysis: Rimini Street Launches Third Party Maintenance for SAP

20090504 News Analysis: Oracle Waives Fees On Extended Support Offerings

20080909 Trends: What Customers Want From Maintenance And Support

20080215 Software Licensing and Pricing: Stop the Anti-Competitive Maintenance Fee Madness

20090428 News Analysis: SAP and SUGEN Make Progress on Enterprise Support

20090405 Monday’s Musings: Total Account Value, True Cost of Ownership, And Software Vendor Business Models

20090330 Monday’s Musings: It’s The Relationship, Stupid. (Part 2) – Stop Slashing The Quality Of Support And Maintenance

20090324 Tuesday’s Tips: Five Simple Steps To Reduce Your Software Maintenance Costs

20090223 Monday’s Musings: Five Programs Some Vendors Have Implemented To Help Clients In An Economic Recession

20081012 Monday’s Musings: 5 Steps to Restoring Trust in the Vendor – Customer Relationship

20091012 Research Report: Customer Bill of Rights – Software-as-a Service

20090912 News Analysis: Siemens Cancels SAP Maintenance Contract

20090910 Tuesday’s Tip: Note To Self – Start Renegotiating Your Q4 Software Maintenance Contracts Now.


Copyright © 2010 R Wang and Insider Associates, LLC. All rights reserved.

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Four Common Customer Scenarios Will Trigger Vendors To Raise The Back Maintenance Fee Discussion Buy cheap evista online, Back maintenance fees describe the amount an organization would have paid for maintenance if they would have continued to pay the usual stream required to access support, bug fixes, patches, and upgrade rights.  As economic conditions have worsened, many organizations have turned to self-support, third party maintenance (3PM), or dropped support.  Discussions with 43 enterprise software customers reveal four common scenarios (see Figure 1):


  1. Scenario 1: Self supporting customers looking to upgrade to next release. Order zometa online cheap, Customers (44.19% n=19/43) in these scenarios typically run mature systems and are in businesses that do not face dynamic change .  They stopped paying maintenance years ago and rarely make major changes to the system.
    Catalyst:  Something happens in the business and the need to upgrade arises.
    Typical vendor response:
    Upgrades can only be provided to customers who pay for maintenance.  Upon payment of back maintenance, ordering cytoxan no prescription, Where to buy cheap iressa, upgrades will be provided.  In some cases, vendors also levies a penalty.

  2. Scenario 2: Self supporting customers seeking a major bug fix or regulatory update, Acheter en ligne arimidex. Comprar evista de descuento, Organizations (27.91% n=12/43) in this dynamic have self-supported for years without incident but run into scenarios where their own teams can not resolve an issue.
    Catalyst: Bug fixes and major regulatory changes can not be supported by the internal team, Georgia GA Ga..
    Typical vendor response: Bug fixes and regulatory updates can only be provided to customers who pay for maintenance.  Upon payment of back maintenance, patches and regulatory updates will be provided.  In some cases, vendor also levies a penalty.

  3. Scenario 3: Customers shifting to third party maintenance (3PM) looking to future upgrade/replacement, buy cheap evista online. Generic casodex, Those customers (16.28% n=7/43) who move to a third party maintenance provider and give up future upgrade rights often face threats from sales people that they will have to "pay dearly" if they plan to come back  to the vendor.
    Catalyst: Final decision to end of life systems and upgrade to new platform results in interaction with existing vendor, lowest price arimidex. Ordering cytoxan online, Typical vendor response: Customer must pay back maintenance in order to purchase additional modules or upgrade. In some cases, cheap evista pill, Ordering casodex no rx, vendor also levies a penalty.

  4. Scenario 4: Customers not paying for maintenance with license contracts. Buy cheap evista online, More and more customers (11.63% n = 5/43) in newer areas such as CRM no longer pay for maintenance and support past the first year.  With replacements every 4 to 5 years for CRM, some customers achieve a better ROI by avoiding the 5 years of maintenance.  Why?  Five years of maintenance at 20% is equivalent to the cost of the original license.   Instead, Hawaii HI, Acquistare a buon mercato epogen, they just rebuy a replacement/upgrade every 5 years.
    Catalyst:  Replacement and full rebuy of new system, evista kopen. Idaho ID, Typical vendor response: Customer must pay back maintenance in order to purchase additional modules or upgrade.  In some cases, vendor also levies a penalty.


Figure 1, För capecitabine online. Where to buy epogen, Common Triggers That Drive Back Maintenance Fee Threats

screen-shot-2010-04-13-at-125226-pm


Customers Often Have More Leverage Than They Realize

Most organizations fear that vendors will carry out threats to charge back maintenance.   Those vendors who subsidize license fees with maintenance to maximize Total Account Value (TAV) often threaten customers the most.  Many organizations will cave-in to demands.  Do not cave-in!  In almost every scenario, expert contract negotiations often result in win-win propositions for both the customer and the vendor for a few reasons:


  • Vendors really don't want to lose an existing customer, acheter capecitabine. Despite the threats from vendors, customers who self support, move to third party maintenance (3PM), or opt out of support, find themselves with significant leverage.  Free of the vendor, organizations in this scenario can make a clean decision because the technology typically is outdated, the cost of upgrade is close to the cost of reimplementation, and the organization has entered a new buying cycle.  If a current vendor wants a customer to pay back maintenance on top of the new license fees, that vendor will find themselves at a price disadvantage with a newer alternative.  Most vendors would rather win your business than lose a customer over back maintenance fees.

  • SaaS competition brings more choices in most categories, buy cheap evista online. Cheap casodex, The explosion of SaaS deployment options opens up the door to competition with the traditional on-premise vendors.  In most cases, there are enough viable options to add  competitive pressures.  SaaS competitors can transcend existing platforms allowing for more choice in new markets.  Organizations should introduce SaaS vendors into short lists in decisions to replace or add additional functionality to existing systems.  Competition often results in the vendor backing down on their back maintenance fee threat.

  • Most customers have not bundled their service contracts. With a flurry of mergers and acquisitions for organizations and the technology vendors, iressa online store, Ostaa halvalla iressa, most organizations have not consolidated their software contracts.  Separate agreements give organizations significant leverage when dealing with vendors because organizations can choose which applications and solutions to cut maintenance on.  This power to slice and dice among the contracts provides tremendous negotiation advantage and a strong check and balance with vendors.  Do not bundle your maintenance contracts unless significant advantages exist in new terms and conditions.


The Bottom Line For Users - Software Market Remains A Competitive Buyers Market For Now

Economic conditions, SaaS competition, capecitabine without prescription, Cytoxan kopen, and heavy dependence on maintenance revenue leave software vendors hungry and competitive for new license revenue.  In markets with SaaS competition, customers continue to win concessions in license and maintenance fee reductions.  Today, cheap arimidex overnight delivery, Billig kaufen casodex, few vendors can afford to enforce their threats to charge for back maintenance. With a high likelihood that current conditions will continue, its would be unlikely to assume that vendors would give up the opportunity to win license revenue by charging for back maintenance.  Work with a contract negotiations expert with applications strategy experience for the best results.  Avoid contract negotiators who do not understand vendor product road maps or hide behind revenue recognition excuses.

Your POV

Has your vendor threatened back maintenance?  Should you have rights to Third Party Maintenance (3PM) ?  Do you feel its okay for your vendor to prevent you from access?  What's a fair amount to pay for maintenance?  Add your comments to the discussion or send on to rwang0 at gmail dot com or r at softwaresinsider dot org and we’ll keep your anonymity.

Please let us know if you need help with your contract negotiations and maintenance renegotiation.  Here’s how we can help:


  • Assistance with vendor threats of back maintenance

  • Crafting your next gen apps strategy

  • Contract negotiations support

  • Free market evaluation to identify contract cost savings


Related resources and links

Take the new and improved survey on 3rd party maintenance


20100222 Monday's Musings: Why Users Should Preserve Their Third Party Maintenance Rights

20091008 Deal Architect - Vinnie Mirchandani “Third Party Maintenance Is Really 4 Decades Old”

20071120 News Analysis: Too Early to Call the Death of Third Party Maintenance

20090210 Tuesday’s Tip: Software Licensing and Pricing - Do Not Give Away Your Third Party Maintenance And Access Rights

20090709 Tuesday’s Tip: Do Not Bundle Your Support and Maintenance Contracts.

20090622 News Analysis: Infor Flex Reflects Proactive Maintenance Policy

20090516 News Analysis: Rimini Street Launches Third Party Maintenance for SAP

20090504 News Analysis: Oracle Waives Fees On Extended Support Offerings

20080909 Trends: What Customers Want From Maintenance And Support

20080215 Software Licensing and Pricing: Stop the Anti-Competitive Maintenance Fee Madness

20090428 News Analysis: SAP and SUGEN Make Progress on Enterprise Support

20090405 Monday’s Musings: Total Account Value, True Cost of Ownership, And Software Vendor Business Models

20090330 Monday’s Musings: It’s The Relationship, Stupid. (Part 2) - Stop Slashing The Quality Of Support And Maintenance

20090324 Tuesday’s Tips: Five Simple Steps To Reduce Your Software Maintenance Costs

20090223 Monday’s Musings: Five Programs Some Vendors Have Implemented To Help Clients In An Economic Recession

20081012 Monday’s Musings: 5 Steps to Restoring Trust in the Vendor - Customer Relationship

20091012 Research Report: Customer Bill of Rights - Software-as-a Service

20090912 News Analysis: Siemens Cancels SAP Maintenance Contract

20090910 Tuesday’s Tip: Note To Self - Start Renegotiating Your Q4 Software Maintenance Contracts Now.


Copyright © 2010 R Wang and Insider Associates, LLC. All rights reserved.

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Who Says Support Has To Be Bundled With Maintenance? Order epogen no prescription, About a decade back, vendors would offer support and maintenance as two separate line items on their contracts.  Support would run about 5 to 10% the license fee and so would maintenance.  Keep in mind, average support and maintenance fees were under 15% back then.  Here's a quick primer on what was covered:


  • Maintenance.  Traditional areas include basic bug fixes, functional and performance enhancements, upgrades, backward compatibility, and legislative and regulatory updates.

  • Support.  Most requests fall in the technical support category.  Support cases typically include installation issues, integration questions, third product compatibility, and complex scenario resolutions.


Today, almost every vendor in the enterprise apps world (i.e. Buy arimidex, ERP, CRM, Utah UT, För evista online, SCM, eCommerce, osta alennus cytoxan, Order evista online cheap, etc) has decided to bundle the two line items together. It's now known as software maintenance and support and vendors charge between 18 and 28% of net price, billiga epogen apotek. Cheapest iressa, Microsoft Dynamics Uniquely Provides A Separated Maintenance And Support Option With Choice, Value And Flexibility

While many in the software industry have obsessed with locking customers into maintenance and support contracts, bestill casodex online, Køb discount epogen, the Microsoft Dynamics team set out to differentiate the ownership experience around the key principles of choice, value, cheap casodex online, Pennsylvania PA Penn., and predictability (see Figure 1).


  • Choice.  After the initial purchase, purchase zometa, Comprar evista de descuento, Microsoft Dynamics has offered customers the option to purchase maintenance and support separately.  This is unique to the industry for three reasons because customers:

    1. Choose whether or not to buy maintenance.

    2. Determine who they go to for support.

    3. Separate the technical support from the maintenance decision.





  • Value.  Microsoft's maintenance plan bundles a series of customer friendly services that deliver value.  The include

    1. Unlimited acccess to eLearning.  Customers can get to any course at any time with their maintenance dollar.  There's no requirement for expensive week long training academies.

    2. 24 hour self-service support. Microsoft's invested in its self support community and has 1000 new users a month with 30,000 self-help posts to date.  Most questions can be addressed in the discussion forum or directly by an expert.

    3. 10 years of lifecycle support, order evista online without prescription. Most vendors provide a 5 year plan with escalating costs in the 6th and 7th years.  10 years represents a reasonable life cycle for ERP.





  • Predictability.  Along with the 10 years of lifecycle support, Microsoft Dynamics will use the original purchase price as the basis of calculating future maintenance fees.  Users must stay current on enhancements to qualify.


Figure 1: Microsoft Dynamics' Delivers Choice and Value In Its Support And Maintenance Offerings

screen-shot-2010-03-08-at-10320-am


The Bottom Line - Users Should Demand A Split In Maintenance And Support

Now's the time to seek options in maintenance.  Shelfware reduction, third party maintenance (3PM), and contract re negotiations should provide some relief at the business level.   However, decoupled maintenance from support options opens up the customer base to internal and third party options.  Sticking with maintenance and not support may prove to be the best value (i.e, order epogen no prescription. Kjøpe evista online, next to 3PM) and create a win-win between the vendors and customers.

The Bottom Line - Progressive Vendors Can Take Charge And Lead The Way, Minnesota MN Minn.. New Jersey NJ N.J.,

Software vendors must reexamine their offerings to understand what customers need.  Should economic conditions worsen, more third party maintenance (3PM) options will emerge and force pricing pressures against today's tired models.  Vendors must take action by phasing in or offering tiered maintenance offerings and minimal support

Your POV

Are you a Microsoft Dynamics customer?  Did you unbundle support from maintenance?  Are you looking at options to compare the vendors?  We'd love to hear your point of view.   Please post or send on to rwang0 at gmail dot com or r at softwaresinsider dot org and we’ll keep your anonymity, Idaho ID. Michigan MI Mich., Let us know if you need help with your enterprise apps strategy by:


  • Conducting an ROI on 3rd party maintenance options

  • Identifying cost reduction opportunities

  • Renegotiating your software contracts

  • Improving innovation via SaaS and other deployment options


Take the new and improved survey on 3rd party maintenance and
Related resources and links

20091008 Deal Architect - Vinnie Mirchandani "Third Party Maintenance Is Really 4 Decades Old"

20071120 News Analysis: Too Early to Call the Death of Third Party Maintenance

20090210 Tuesday's Tip: Software Licensing and Pricing - Do Not Give Away Your Third Party Maintenance And Access Rights

20090709 Tuesday's Tip: Do Not Bundle Your Support and Maintenance Contracts.

20090622 News Analysis: Infor Flex Reflects Proactive Maintenance Policy

20090516 News Analysis: Rimini Street Launches Third Party Maintenance for SAP

20080909 Trends: What Customers Want From Maintenance And Support

20080215 Software Licensing and Pricing: Stop the Anti-Competitive Maintenance Fee Madness

20090428 News Analysis: SAP and SUGEN Make Progress on Enterprise Support

20090405 Monday's Musings: Total Account Value, ordering iressa from canada, Comprar evista, True Cost of Ownership, And Software Vendor Business Models

20090330 Monday's Musings: It's The Relationship, cheap generic gleevec, Cheapest arimidex online, Stupid. (Part 2) - Stop Slashing The Quality Of Support And Maintenance

20090324 Tuesday's Tips: Five Simple Steps To Reduce Your Software Maintenance Costs

20090223 Monday's Musings: Five Programs Some Vendors Have Implemented To Help Clients In An Economic Recession

20081012 Monday's Musings: 5 Steps to Restoring Trust in the Vendor - Customer Relationship

20091012 Research Report: Customer Bill of Rights - Software-as-a Service

20090910 Tuesday's Tip: Note To Self - Start Renegotiating Your Q4 Software Maintenance Contracts Now, casodex sale. Order iressa online without prescription,

20090602 Tuesday’s Tip: Now’s The Time To Consider SaaS Software Escrows


Copyright © 2010 R Wang and Insider Associates, LLC. All rights reserved.

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Order cheap iressa online, Apps Users Seek Third Party Maintenance For Cost, Value, and Service

Updated surveys from inquiries, client conversations, and user group meetings show a 113.8% increase in interest in third party maintenance (3PM) services from Q3 2009 to Q1 2010 (see Figure 1).  Key factors stem from (see Figure 2.):


  • Continuing cost pressures. Louisiana LA, Budgets continue to be at flat or have been reduced.  Organizations must do more with less.  Add pressures to innovate, CIO's must find fat without trimming bone.

  • Gaining minimal value in maintenance services, West Virginia WV W.Va.. Buy arimidex online legally, Most felt they were paying too much for too little.  An 8 point jump reemphasized the issue with a lack of tiered offerings.

  • Declining plans to upgrade. Worsening economic conditions from Q3 2009 to Q1 2010 led a 27 point increase in interest in 3PM.  Expect many respondents to change their point of view (POV) as economic conditions improve.

  • Expecting better service, cytoxan ordine on-line. Kjøpe billig epogen, Service continues to play a key factor in decisions to go to 3PM.  Over 60% of respondents had experienced poor levels of service.

  • Slowing pace of vendor innovation. Greater than half of respondents believe their vendor has been too slow to deliver new capabilities, order cheap iressa online. These include SaaS deployment options or key functionality in areas such as strategic HCM and social CRM.

  • Disliking the vendor, Maryland MD Md.. Buy iressa, About 1/3 of the survey respondents have bad experiences with their vendor.  Many times it comes from sales person or support rep experiences.

  • Delivering self support. Almost 30% of respondents already provide their own support.  These organizations have no need to pay maintenance when they are doing all the work.


Figure 1, order arimidex without prescription. Order capecitabine online cheap, Interest in 3PM grows 113.8% over 2 quarters.

screen-shot-2010-02-20-at-44436-pm


Figure 2. Order cheap iressa online, Cost Pressures, Value, And Decision Not To Upgrade Drive Current Trends to 3PM

screen-shot-2010-02-20-at-44448-pm


Limited Options Exist For Most Enterprise Apps Customers

Of the 101 respondents in Q1 2010 interested in 3PM, Oracle (88.1%) and SAP (76.2%) users expressed the greatest interest in seeking independent services (see Figure 3).  Over 80% of the users were from large companies greater than 1000 employees across the globe.  Most SAP users surveyed have mixed environments with Siebel, JD Edwards, and PeopleSoft joint installations.  Unfortunately, very few public options exist for sole SAP users (see Figure 4).  For example, SAP customers can only turn to Rimini Street.  Oracle customers on PeopleSoft, JD Edwards, and Siebel also have limited choices with Rimini Street, netCustomer, and Spinnaker among the options.  IBM, Infor, Lawson, Computer Associates, Epicor, Microsoft Dynamics, Oracle E-Business Suite and database customers have no options.  (Note: This data may not be completely statistically significant given the sample size of 240, but hopefully it provides some directional input.)

Figure 3. Oracle And SAP Users Drive Interest In 3PM

screen-shot-2010-02-20-at-44457-pm


Figure 4, Illinois IL Ill.. Cheap zometa online without prescription, Very Few Public Options Exist For Customers

screen-shot-2010-02-20-at-100912-pm


The Bottom Line For Users - Users And User Groups Must Band Together To Guarantee 3PM Rights. Don't Take These For Granted, buy evista online. αγοράζουν online arimidex,

Although the latest surveys show a 17 point increase in the belief that 3PM is a right, this right is under fire by big vendors such as Oracle who have taken legal actions against 3PM providers for improperly (i.e, farmacia evista barato. TomorrowNow) and allegedly (i.e, order cheap iressa online. Um casodex online, Rimini Street) violating intellectual property rights.  If providers have violated such laws, Oracle rightfully should defend its positions and those providers be punished.  However, cheap gleevec tablet, Epogen pill, there's a lot of money at stake.  For most vendors, maintenance represents 50% to 80% of their revenue stream.  Consequently, iressa without a prescription, Nebraska NE Nebr., users and user groups have a responsibility to:


  • Demand that their contracts include provisions that protect their right to 3PM

  • Require vendors to work out rules on how 3PM providers can deliver services without violating software IP provisions

  • Seek anti-trust class action with the US DOJ (i.e. Christine A, cheapest zometa price. Washington WA Wash., Varney) and the EU Compeition (i.e. Joaquín Almunia) against software vendors who hinder 3PM providers from providing services


Users and user groups must vigorously defend their positions in contracts and legal action or lose this right.  Failure will result in a continued software maintenance monopoly.  Success will ensure market competition and renewed innovation.  Attention: OAUG, District of Columbia DC D.C., Order epogen online, Quest, and SUGEN leadership your members need your help, Hawaii HI.
Figure 5.  A Growing Body Of Users Believe 3PM Is A Right

screen-shot-2010-02-20-at-44509-pm


The Bottom Line For Vendors - Proactively Address The Issue Or Expect A Groundswell Of Activism
Order cheap iressa online, SaaS, subscription pricing, 3PM, and the economy provide a confluence of forces that will continue to attack maintenance revenue streams.  Many legal cases have been fought over this issue including IBM vs Amdahl and Geac vs Grace ConsultingSAP's failed attempt to convince customers on the value of Enterprise Support led to a public relations disaster and a factor in the resignation of their CEO.  The result - many vendors considering price hikes held back.  In fact, some savvy software vendors retooled and restored the client -vendor relationship by:

  • Offering more entry points and tiers to support options. Ostaa halvalla evista, The three pillars of software maintenance and support policies still apply.  However, several vendors are now offering more tiers of support as lower entry points.  Two vendors have finalized plans to offer just the bare bones legal and regulatory updates.  Other vendors have made it easier to come back with maintenance amnesty plans.

  • Providing flexible maintenance policies. Vendors who change rigid policies have experienced success among customers.  Some Both Infor through Infor Flex and Micrsoft Dynamics allow like for like swap credits to migrate between existing products.

  • Renegotiating existing terms. Some vendors are helping clients meet the realities of the current market conditions. Big on the list is helping clients address shelf ware without repricing of contracts.  For clients who paid full maintenance on software that’s at least 4 years old, some vendors are offering to reduce up to 20% of the overall licenses not in use.  This leads to lower maintenance revenue but engenders good will among key clients.  Further, several vendors have allowed clients to apply credit towards another module as an alternative.

  • Delivering amnesty programs. Several vendors have allowed customers to return to maintenance programs after years of not paying.  Such programs play a key role in helping customers upgrade but should be used sparingly as customers may become accustomed to this practice.

  • Creating better peer forums to share information. Almost every vendor surveyed has a program to improve the online support capabilities.  Applying Social CRM use cases,  user generated content in peer forums tops the list of initiatives.  Other plans focus on sharing data on benchmarks, operational metrics, and best practices.

  • Assisting with vendor financing, order cheap iressa online. Clients seek access to financing, especially many in the mid-market who’s credit lines have been zapped.  Microsoft has led the charge by providing 0% financing for its Microsoft Dynamics ERP and Microsoft Dynamics CRM Customers.  Other vendors such as IBM, Infor, Oracle, SAP, Sage also offer vendor led financing programs that include hardware, implementation, training, and other services.

  • Lowering cost of usage and ownership. Though tops on the list as a conceptual practice, most vendors will need to roll out such initiatives over the next 24 months.  A few notable exceptions include Agresso with its VITA architecture which allows customers to rapidly make business and UI changes, Microsoft Dynamics customers who report back significantly lowered implementation and training costs compared to most vendors, and Epicor customers who report significant productivity gains with Service Connect.  SaaS customers already experience such gains.


Your POV

Take the new and improved survey on 3rd party maintenance and let us know if you need help with your enterprise apps strategy by:


  • Conducting an ROI on 3rd party maintenance options

  • Identifying cost reduction opportunities

  • Renegotiating your software contracts

  • Improving innovation via SaaS and other deployment options


Please post or send on to rwang0 at gmail dot com or r at softwaresinsider dot org and we’ll keep your anonymity.
Related resources and links

20091008 Deal Architect - Vinnie Mirchandani "Third Party Maintenance Is Really 4 Decades Old"

20071120 News Analysis: Too Early to Call the Death of Third Party Maintenance

20090210 Tuesday's Tip: Software Licensing and Pricing - Do Not Give Away Your Third Party Maintenance And Access Rights

20090709 Tuesday's Tip: Do Not Bundle Your Support and Maintenance Contracts.

20090622 News Analysis: Infor Flex Reflects Proactive Maintenance Policy

20090516 News Analysis: Rimini Street Launches Third Party Maintenance for SAP

20090504 News Analysis: Oracle Waives Fees On Extended Support Offerings

20080909 Trends: What Customers Want From Maintenance And Support

20080215 Software Licensing and Pricing: Stop the Anti-Competitive Maintenance Fee Madness

20090428 News Analysis: SAP and SUGEN Make Progress on Enterprise Support

20090405 Monday's Musings: Total Account Value, True Cost of Ownership, And Software Vendor Business Models

20090330 Monday's Musings: It's The Relationship, Stupid. (Part 2) - Stop Slashing The Quality Of Support And Maintenance

20090324 Tuesday's Tips: Five Simple Steps To Reduce Your Software Maintenance Costs

20090223 Monday's Musings: Five Programs Some Vendors Have Implemented To Help Clients In An Economic Recession

20081012 Monday's Musings: 5 Steps to Restoring Trust in the Vendor - Customer Relationship

20100114 News Analysis: SAP Revives Two Tier Maintenance Options

20091012 Research Report: Customer Bill of Rights - Software-as-a Service

20090912 News Analysis: Siemens Cancels SAP Maintenance Contract

20090910 Tuesday's Tip: Note To Self - Start Renegotiating Your Q4 Software Maintenance Contracts Now.

20090602 Tuesday’s Tip: Now’s The Time To Consider SaaS Software Escrows


Copyright © 2010 R Wang and Insider Associates, LLC. All rights reserved.

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Gains In SaaS Adoption Driven By Speed And Cost Savings...

Preliminary data from Q4 earnings data show continued traction among SaaS solutions.  Expect SaaS deployments to gain steam in 2010 as organizations finalize their SaaS apps strategies to take advantage of 7 key benefits:


  1. Richer user experience - Buy cheap arimidex online, SaaS apps bring Web 2.0 usability to the enterprise world through rich internet applications using Adobe Air, HTML 5, Microsoft Silverlight, and other tools.

  2. Rapid implementation - SaaS applications focus on configuration and integration, not hard core implementation.  Users can be up in weeks, not months.

  3. Frequent cycles of innovation - At present, most vendors introduce new functionality, enhancements, and bug fixes on frequent refresh cycles.  Some vendors provide as frequent as weekly updates, others - seasonal.

  4. Minimal upgrade hassles - Users focus on minimal testing scenarios and receive updates all at once.  In applications with significant regulatory and tax updates, SaaS applications reduce the cost of compliance by as much as 77%.

  5. Always on deployment - Organizations can expect average up-time levels at 99.95% or higher for most applications.  These results often exceed existing on-premise performance.

  6. Subscription pricing - Subscription pricing reduces the capital burden of common on-premise payment models.

  7. Scalability - Organizations can add or subtract users as needed without worrying about procuring new hardware and other infrastructure.


Moreover, latest Information Week Analytics survey reaffirms several key benefits of SaaS adoption - time to market and cost savings (see Figure 1).

Figure 1, purchase capecitabine online. Acheter capecitabine, Information Week Analytics Survey Confirms Trends In Adoption

Information Week Analytics 2010 SaaS survey

...Yet, Aggregated Information Provides The Differentiated Value To Clients

Despite the obvious benefits with SaaS deployments, buy zometa without prescription, Nebraska NE Nebr., three hidden advantages will emerge with market maturity:


  • Benchmarking. SaaS vendors sit on a tremendous treasure trove of data.  Participating organizations could opt-in to share secure and masked information for the purposes of business optimization.

  • Trending, köpa casodex. Order casodex no prescription, Organizations could also opt-in to identify larger market trends.  Trending information could be used to help organizations with planning.

  • Prediction. More sophisticated organizations will take SaaS vendor trending data and design new algorithms to support predictive analytics.  The richness and consistency of the data set will improve accuracy.


The Bottom Line For SaaS Vendors - Create Additional Value As An Information Broker

The end game for SaaS vendors may not be a re-creation of the on-premise world in the Cloud.  In fact, those vendors with a true multi-tenant SaaS model may turn out to find additional revenue streams as information brokers.  Expect demand for premium information-on-demand services to begin with benchmarking and evolve to prediction.  For example, imagine the benefits gained by organizations who consume the latest buying behavior data from their CRM vendors.  Organizations could turn to HCM vendors for geographical salary or hiring trends.  Customers of financial vendors could better predict credit risk factors.  A key requirement - customers must trust their SaaS vendor's data ownership and privacy policies before the industry makes this transformation.  With acceptance, vendors will have more reasons to move to a SaaS offense.

The Bottom Line For Organizations - Determine Your Data Rights Before You Sign The Contract

Organizations in SaaS deployments will want to preserve the their data rights and minimize their cost structures to consume aggregated information.  A few key areas should be considered:


  • Data usage, buy cheap arimidex online. Organizations generally assume that the data belongs to the organization while the software belongs to the SaaS vendor.  To be safe, South Carolina SC S.C., Capecitabine cheap, organizations will want to be clear that rights to use data will require an organization's permission.  In addition, the disposition of data should be made clear

  • Data access, buy zometa cheap. Bestill iressa online, Organizations should expect unhindered access to raw data, queries, order gleevec online without prescription, Order iressa, and extraction.  Access to data should not require additional fees.

  • Aggregated data cost. Organizations participating in aggregated data programs should be given preferential treatment not only in cost, Massachusetts MA Mass., Kjøpe capecitabine online, but also access to data.  The cost of this "stone soup" approach should be factored in pricing.


Your POV

Where are you in your SaaS deployment.   Have you thought about these long-term benefits, arimidex online store. Buy cheap arimidex online, Looking for assistance with crafting, validating, or reviewing your SaaS Apps Strategy?  Do you have a different point of view. Ordering iressa without prescription, Please post or send on to rwang0 at gmail dot com or r at softwareinsider dot org and we’ll keep your anonymity.

Other Useful SaaS Strategy Links

20091222 Tuesday's Tip: 10 Cloud and SaaS Apps Strategies For 2010

20091012 Research Report: Customer Bill of Rights - Software-as-a Service

20090602 Tuesday's Tip: Now's The Time To Consider SaaS Software Escrows

20081028 Tuesday's Tip: SaaS - Integration Advice

20090714 Sandhill.com - R 'Ray' Wang - "Opinion: Moving to a SaaS Offensive"

20070903 Trends: What's all the fuss about True SaaS, Texas TX Tex., Buy evista without prescription, OnDemand, Hosting, iressa no prescription. Kjøpe epogen online,

20091208 Tuesday's Tip: 2010 Apps Strategies Should Start With Business Value

20091109 Monday's Musings: SaaS, SOA, casodex pedido en línea, Utah UT, Integration and How To Make A Peanut Butter And Jelly Sandwich In The Cloud


Copyright © 2010 R Wang and Insider Associates, LLC, New Jersey NJ N.J.. Kansas KS Kans., All rights reserved. Order arimidex no prescription.

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Standard Support Returns After Much Deliberation

SAP announced today that they would be reintroducing their Standard Support offering.  Customers now gain choice Order cytoxan without prescription, with a 2-tier maintenance offering. Here are the details between standard support and enterprise support, comprar casodex. Georgia GA Ga.,


  • Standard Support Offering reintroduces at 18%. Customers seeking core bug fixes, gleevec kopen, Ordering capecitabine, support packages, risk mitigation, Mississippi MS Miss., Tennessee TN Tenn., and related new functionality will have choice in staying on standard support.  The program is designed for customers who seek to keep their systems up and running.  Customers with CPI clauses in their contracts will want to take note - the first set of consumer price index (CPI) price increases will begin January 1st, 2012.

  • Enterprise Support remains at 22%, pharmacy capecitabine. Iowa IA, SAP will continue to offer Enterprise Support at 22% for new customers and a ramp up for existing customers (see Figure 1).  Enterprise support includes features such as best practices for IT operations, proactive monitoring and reporting, acquistare online capecitabine, Goedkope casodex apotheek, and transparency for business process performance.  Customers who choose to go with Enterprise Support prior to March 15th, 2010 will be eligible for ramp up.

  • Supplemental offerings still available, buy zometa. Other programs such as Max Attention, Safeguarding, and Product Support for Large Enterprises (PSLE) will continue to be available by choice and invitation.


Figure 1, order cytoxan without prescription. Ordering evista overnight delivery, SAP's New Support Pricing Scale

[caption id="attachment_4087" align="alignnone" width="529" caption="(Source: SAP)"]screen-shot-2010-01-14-at-74603-am[/caption]

The Bottom Line - Best Support Scenarios Will Depend On Your Previous and Current Contracting Prowess

The good news - SAP's spent considerable amount of time listening to their customers.  The result - customers do want choice and there are plenty of choices to be made.  Decisions on which option is best can be best summarized by asking a few key questions:


  • Are you expanding your use of SAP in the next 3 to 5 years? Determine your pace of adoption for SAP products.  If you are planning to add more modules then you will want to consider Enterprise Support.  If you are not, then you should be moving to standard support and considering 3rd party maintenance in 12 to 18 months.

  • Do you have a CPI increase in your contract, capecitabine farmacia a buon mercato. Buy zometa online without prescription, If you do, then you'll want to see if the total is above the inflation rate or the enterprise support ramp up of 6% per annum.  The best case is to have negotiated CPI + 0% but most SAP customers have CPI +5% as standard, arimidex kopen, Arimidex online kaufen, well over the 6%.

  • What's your overall SAP apps strategy. How will you harness innovation within and around SAP?  What's your plan in the next 12 to 18 months?  What will you be doing with SaaS?  How will you be incorporating portals such as Sharepoint?

  • Can you make a decision on Enterprise Support by March 15, buy gleevec cheap, Order casodex online, 2010? Existing customers who have not moved to Enterprise Support must make a decision in order to go with the slow ramp up.  Those who wait after March 15, 2010 will start at 22% maintenance.


A sample output for clients would be a decision matrix based on multiple factors.  Below is one example for used with clients in an early morning call with 2 key factors of CPI increase in contract versus adoption of SAP.  Other factors will include when your contracts began and what lifecycle of adoption your organization are in, comprar iressa. Mississippi MS Miss., (See Figure 2):

Figure 2.  Sample SAP Support Decision Matrix

[caption id="attachment_4088" align="alignnone" width="599" caption="Copyrighted © 2001- 2010 R "Ray" Wang and Insider Associates LLC."]Copyrighted © 2001- 2010  R "Ray" Wang and Insider Associates LLC.[/caption]

Your POV

Need help with your contract negotiations?  Tap into the experience of thousands of contract negotiations.  Have a story to share about SAP contracts. Order cytoxan without prescription, Please post or send on to rwang0 at gmail dot com and we’ll keep your anonymity.

* Not responsible for any factual errors or omissions.  However, Osta zometa online, Buy zometa online cheap, happy to correct any errors upon email receipt.

Other Useful Software Contract Negotiations Links

Tuesday's Tips: Five Simple Steps To Reduce Your Software Maintenance Costs

Tuesday's Tip: Do Not Bundle Your Support and Maintenance Contracts, Michigan MI Mich.. Billige zometa apotek,

Tuesday's Tip: Software Licensing and Pricing - Do Not Give Away Your Third Party Maintenance And Access Rights

Tuesday's Tip: 3 Approaches To Return Shelfware

Tuesday's Tip: Software Licensing and Pricing - Now's The Time To Remove "Gag Rule" Clauses In Your Software Contracts


Related Blogs, Press, Nebraska NE Nebr., and Links

MUST READ - 2010017 Irregular Enterprise - Dennis Howlett "SAP's Maintenance Cost Sleight of Hand"

News Analysis: SAP Moves All Customers Onto More Expensive Enterprise Support

News Analysis: SAP and SUGEN Make Progress on Enterprise Support

20100115 SearchSAP.com/TechTarget - Courtney Bjorlin " Choosing Standard or Enterprise support more difficult for SAP customers with no KPIs "

20100114 IDC - Amy Konary at IDC "Guest Post: Back by Popular Demand, A Basic Maintenance Offering from SAP"

20100114 Forrester Blogs - Paul Hamerman "SAP's Tiered Support Announcement Diffuses a Contentious Issue"

20100114 IDG News - Chris Kanaracus "SAP shakes up support structure, executive organization"

20100114 Enterprise System Spectator - Frank Scavo "Flash: SAP backs down on 22% maintenance fees"

20100114 Information Week - Doug Henschen "SAP Reintroduces Tiered Maintenance"

20100114 ComputerWorldUK - Mike Simons "Update: SAP does U-turn on Enterprise Support"


Copyright © 2010 R Wang and Insider Associates, LLC. All rights reserved.

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High Cost Of Ownership And Changing Requirements Drive SAP Users To Seek Optimization Solutions

As users await SAP to regain its mojo (see Dennis Howlett's post) and implement it's "Voice of the Customer" strategy Buy cheap gleevec online, in 2010, users must continue to reduce their cost of ownership and complexity (see Figure 1).  In addition, rapidly changing business requirements require some users to seek SaaS alternatives, additional point solutions, and extensions.

Figure 1.  Cost Reduction Top of Mind for SAP users

What SAP users want from SAP

Consequently, vendors providing SAP optimization and extension solutions represent one of the fastest growing parts of the $78.7B (2009 Altimeter Group estimate), Illinois IL Ill., 850,000 person strong SAP service partner and developer ecosystem.   SAP users already embrace many of the solutions from vendors on this inaugural SAP Optimization List as part of their business value oriented apps strategy. The living list covers seven areas including:

  1. application extension and usability;

  2. application life cycle management;

  3. archiving, storage, buy cheap gleevec, and data management;

  4. license management and optimization;

  5. Microsoft Office integration;

  6. third party maintenance; and

  7. virtualization


1. Application Extension and Usability

Users often complain about the poor usability of SAP solutions.  These solutions allow users to change their user experience with SAP.  In some cases, Order arimidex, the solutions provide composite app creation capabilities in other tool sets to inter-operate with SAP.


  • Adobe - provides interactive forms for the SAP environment in both an off-line and on-line deployment.  Submitted forms are then entered into SAP.  Forms can include validations and other secure features.

  • ERP-Link - allows users to extend the SAP environment for business intelligence, document management, content management, Connecticut CT Conn., and composite application creation using Microsoft tools.  The i_Net platform creates SAP-Microsoft interoperability.

  • GuiXT - provides users with the ability to deliver customized user interfaces in SAP applications.  GuiXT is often used by clients to simplify screens and user flows without impacting SAP code.


2. Application Life Cycle Management

Whether it may be instance consolidation, upgrades, test data management, or performance planning, these vendors ease the process of managing the SAP application life cycle, buy cheap gleevec online.


  • Hayes Technology - assists customers with replicating production application data for dev, Buy epogen overnight delivery, testing, and training environments.  Gold Client allows organizations to replicate the data sets they need in SAP configuration, master data, and transcational data.

  • Hyperformix - builds on SAP internal monitoring capability, αγοράζουν φτηνά zometa.   Organizations gain a performance monitoring tool that identifies hardware, infrastructure, Virginia VA Va., and architecture optimization opportunities.

  • Intellicorp - provides an artificial intelligence based optimization solution called Live Compare that compares version of SAP for use in testing, upgrade planning, and other life cycle activities. The solution helps clients understand their pre and post environment.

  • Panaya - delivers a SaaS based optimization tool for SAP upgrades, Iowa IA, enhancement packages, and ABAP code cleansing.  Customers generate a code analysis to determine differentials between versions.  The tool proactively tells user what will break, Rhode Island RI R.I., how to fix it, and where to test.

  • Tidal Software - optimizes the allocation of SAP support resources through a root cause analysis methodology.  Performance, IT Process, and Workload automation solutions address both day to day and upgrade scenarios such as a system refresh.

  • West Trax - uses a benchmark tool based on over 300 clients in 13 industries to determine system optimization opportunities for upgrades and  consolidations.  KPI Scan, iressa online cheap, KPI Optimizer, and KPI QA help organizations identify opportunities, Lowest price arimidex, make suggestions, and assist with compliance.


3. Archiving, Storage, cheap gleevec from canada, and Data Management


  • EMC - provides content management and archiving solutions to support compliance requirements.  Other capabilities include cloning, backup, Kopen goedkope casodex, and recovery, and information protection.

  • IBM Optim - delivers a suite of integrated data management solutions that includes data privacy, test data management, archiving, ordering gleevec online without prescription, retention and E-discovery, and upgrade consolidations.


4. License Management and Optimization
Buy cheap gleevec online, Solutions in this category focus on helping clients manage their license usage.  Many large enterprises lack the understanding of how much shelfware may be in production.  In addition, the used software market provides users with opportunities to unload or acquire older releases of software. Rhode Island RI R.I.,

  • Flexera (formerly Acresso, Macrovision) - helps clients with a software solution to understand usage, ensure compliance, centralize updates, buy evista without prescription, predict future demand, and improve contract negotiation leverage.

  • SUSEN Software - provides a market place to buy and sell used software or shelfware.

  • UsedSoft - supports a market place to buy and sell used software or shelfware.


5. Cheapest zometa in the world, Microsoft Office Integration

Organizations require easy ways to leverage Microsoft Office as an interface into SAP.  Common scenarios include Outlook, Excel, Access, and Word integration, köpa gleevec online.


  • SAP Duet - represents a solution in joint partnership between Microsoft and SAP to provide interoperability.  Current users complain about the slow pace of innovation and high cost.  A new version addressing these issues will be out in 2010.

  • Winshuttle - facilitates data exchange between SAP and Microsoft Excel or Access.   Winshuttle's data management tools automate data entry, Price of gleevec, data download, and reporting tasks for the entire SAP BusinessSuite 7.


6. Third party maintenance

Customers seeking relief from maintenance choose solutions that provide maintenance, tax updates, and regulatory changes for often half the cost of existing SAP maintenance prices.  The clear leader in the market is Rimini Street though some other system integrators have been quietly providing such services, buy cheap gleevec online.


  • Rimini Street- delivers maintenance options for SAP customers who do not seek to upgrade but would like to keep their existing systems up to date with tax, compliance, cheapest capecitabine in the world, and other break-fix issues.  Rimini Street's charter program has met significant success with over 100 client cases for SAP customers.

  • Your System Integrator of Choice - The recent Siemens SAP maintenance contract negotiations revealed that other vendors such as IBM and HCL were bidding for the maintenance business.   Many SoftwareInsider readers have shared with us that many system integrators, especially those in Europe provide such services.


7. Farmacia epogen barato, Virtualization

Virtualization allows organizations to consolidate server infrastructure costs for development, testing, training, and production environments, buy arimidex no rx.


  • EMC - provides virtualization solutions that include high availability (HA), backup and recovery (BR), Ohio OH, and cloning.

  • VMWare -  reduces an organizations physical infrastructure footprint with its solutions.  VMWare provides additional solutions that deliver high availability (HA) and disaster recovery (DR).  In addition to cost savings, many Software Insider readers report performance improvements.


The Bottom Line - Lots Of Proven Solutions, Expect More Details In Future Friday's Features

Over the course of the next 6 months, we will be profiling many of these vendors.  Key questions that will be answered:


  1. What's the appropriate use case?

  2. What other customers have used these solutions?

  3. What are sample ROI's achieved?


Meanwhile, let's see what news, programs, and innovations develop at SAP's Field Kickoff Meeting (FKOM 2010) the third week of January.

Your POV.

Have you worked with any of these vendors?  Feel free to share your experiences.  Am I missing anyone?  This list will be continuously updated so please share with us your thoughts.  Feel free to post your comments here or send me an email at rwang0 at gmail dot com or r at softwareinsider dot org.

Copyright © 201o R Wang and Insider Associates, LLC. All rights reserved.

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