Monday’s Musings: Avoiding Cloud Vendor Lock-In

Customers Must Hurry To Address The Mistakes From Shadow IT SaaS/Cloud Adoption Amidst the hey day of the early years for software as a service (SaaS) and Cloud, many line of business executives signed simple month to month, user based contracts without the burdens of IT and scrutiny of vendor procurement.  These edge applications and […]

Posted by R "Ray" Wang on October 25, 2015


News Analysis: Rimini Street Vs Oracle Ruling Has No Negative Impact on Third Party Maintenance Rights

Recent Oracle vs Rimini Street Ruling Is About Customer Software License Rights Not Third Party Maintenance On February 13th, 2014, the United States District Court , District of Nevada Judge Larry Hicks issued a partial summary judgment in the Oracle vs Rimini Street Case. Here’s the executive summary to key questions about the ruling*: Is […]

Posted by R "Ray" Wang on February 17, 2014


Monday’s Musings: NSA PRISM Scandal Hurts US Cloud Companies And Hastens The Return Of On-Premises Software

Non-US Based Organizations And Even Some US Organizations Will Not Tolerate Snooping In A Post PRISM World Since the Edward Snowden PRISM revelations, Constellation has received a steady stream of inquiries on cloud strategy.   In fact, nervousness runs high among many non-US based companies using services from US based cloud companies across the cloud stack.  […]

Posted by R "Ray" Wang on August 12, 2013


Tuesday’s Tip: Putting the Kibosh On ERP Vendor Sales Reps Who Troll For Indirect Access

Constellation Sees An Alarming Increase In Inquiries Constellation has received an alarming increase in inquiries about an unethical vendor sales practice coined as “trolling for indirect access”. Indirect access is when a vendor claims that a client is accessing their perpetually licensed software in an unintentional manner or inappropriately licensed manner. One vendor uses a […]

Posted by R "Ray" Wang on May 28, 2013


News Analysis: New SAP Customers Face Maintenance Hike

SAP Plans A Standard Support Maintenance Fees Hike Of 5.5%For New Customers For new customers, SAP announced its intent to raise its standard support maintenance fee from 18% to 19% effective July 15, 2013.  The standard support option was reintroduced in January 14, 2010, after much pressure from user groups.  A few key takeaways: Price […]

Posted by R "Ray" Wang on February 4, 2013

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Event Report: Preview 1 – The Keynotes At Constellation’s Connected Enterprise 2012 (#CCE2012)

Think TED Meets Enterprise For The C-Suite We are almost 30 days away from Constellation’s flagship event -Connected Enterprise 2012!  This event from November 9th to 11th, 2012, celebrates innovation in the enterprise and the impact of disruptive technologies on business.  Our theme for 2012 and 2013 centers on the “Art of the Possible”. This […]

Posted by R "Ray" Wang on September 28, 2012


Tuesday’s Tip: Act Now To Leave The Door Open For SAP Third Party Maintenance Options

The Real Deadline To Consider Third Party SAP Maintenance Is September 30th In conversations with hundreds of SAP customers, many have not realized that they must act now in the next 30 to 45 days if they want to move off of SAP customer specific maintenance from extended maintenance for older products. Despite the support […]

Posted by R "Ray" Wang on August 21, 2012


News Analysis: UsedSoft Vs Oracle Ruling Opens Up Monopolistic Practices By Software Vendors

Used Software Pioneers Gain A Small Victory In A Shrinking On-Premises Software World The surprise July 3rd, 2012 judgment by the Court of Justice of the European Union for UsedSoft GmbH v Oracle International Corp rules that “An author of software cannot oppose the resale of his ‘used’ licenses allowing the use of his programs […]

Posted by R "Ray" Wang on July 4, 2012


News Analysis: Spinnaker Expands JD Edwards Support With Versytec Acquisition

Versytec Acquisition Addresses Growing Demand For JD Edwards Support Denver, Colorado based Spinnaker Management announced on March 6th, 2012 its acquisition of competitor Versytec.  For those who remember their third party maintenance (3PM) history, Versytec was among the first firms to announce third-party maintenance services within a year after PeopleSoft acquired JD Edwards in July […]

Posted by R "Ray" Wang on March 25, 2012


Research Summary: Best Practices – Three Simple Software Maintenance Strategies That Can Save You Millions

Forward And Commentary Software ownership costs continue to escalate as vendors accelerate their efforts to capture support and maintenance revenues. Some vendors have gone to the extreme to eliminate third-party options for their customers. This best practices report examines three strategies to free up unnecessary costs to fund innovation and new projects. A. Introduction On […]

Posted by R "Ray" Wang on March 18, 2012


Tuesday’s Tip: Five Cloud/SaaS Contract Negotiation Tips For 2012

Business Leaders Often Poorly Prepared For Cloud/SaaS Contract Negotiations Business leaders often take great care in building their Cloud and SaaS strategy, only to have many of the benefits of flexibility and agility hampered by overlooking details in their cloud contracts.   In conversations with over 200 cloud customers in 2011, key reasons include: A […]

Posted by R "Ray" Wang on January 10, 2012

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Monday’s Musings: Lessons Learned From Amazon’s Cloud Outage

Amazon’s Cloud Outage Catches Most Clients Offguard The recent Amazon cloud outage at its Northern Virgina data center from 5 am Thursday, April 21, 2011 to roughly 5 am Friday, April 22 has shaken the confidence of some executives on public cloud computing.  Most notably, FourSquare, HootSuite, Reddit, and Quora publicly suffered visible performance issues.  […]

Posted by R "Ray" Wang on April 25, 2011


Tuesday’s Tip: Dealing With Pesky Software Licensing Audits

Organizations Report Increase In Software Licensing Audits Across the board, the largest complaints about software vendors and their business practices have come from increasingly aggressive software auditing practices.  Once thought to be a small possibility, the software vendors now wield this big stick to drive up sales and of course ensure compliance.  Given the 32 […]

Posted by R "Ray" Wang on April 19, 2011


Research Report: Constellation’s Research Outlook For 2011

Organizations Seek Measurable Results In Disruptive Tech, Next Gen Business, And Legacy Optimization Projects For 2011 Credits: Hugh MacLeod Enterprise leaders seek pragmatic, creative, and disruptive solutions that achieve both profitability and market differentiation.  Cutting through the hype and buzz of the latest consumer tech innovations and disruptive technologies, Constellation Research expects business value to […]

Posted by R "Ray" Wang on January 4, 2011


Tuesday’s Tip: Dealing With Vendor Threats To Charge For Back Maintenance Fees

Four Common Customer Scenarios Will Trigger Vendors To Raise The Back Maintenance Fee Discussion 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 […]

Posted by R "Ray" Wang on April 13, 2010


News Analysis: Rimini Street Countersues Oracle

Rimini Street Counter Suit Focuses On Ensuring Customer Rights To Third Party Maintenance (3PM) On March 29th, 2010, Rimini Street sued Oracle for “counterclaims alleging copyright misuse, defamation, disparagement, trade libel, and unfair competition”.  The lawsuit was filed as a counter to Oracle’s February 26th, 2010 suit of Rimini Street for Intellectual Property (IP) theft.  […]

Posted by R "Ray" Wang on April 5, 2010


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

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. Budgets continue to […]

Posted by R "Ray" Wang on February 22, 2010


News Analysis: SAP Revives Two-Tier Maintenance Options

Standard Support Returns After Much Deliberation

SAP announced today that they would be reintroducing their Standard Support offering. Customers now gain choice with a 2-tier maintenance offering. Here are the details between standard support and enterprise support.

* Standard Support Offering reintroduces at 18%. Customers seeking core bug fixes, support packages, risk mitigation, 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%. 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, 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. Other programs such as Max Attention, Safeguarding, and Product Support for Large Enterprises (PSLE) will continue to be available by choice and invitation.

Posted by R "Ray" Wang on January 14, 2010


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

Keep In Mind Basic Rules Still Apply Regardless Of Deployment Option The proliferation of SaaS solutions provides organizations with a myriad of sorely needed point and disruptive solutions.  Good news – business users can rapidly procure and deploy, while innovating with minimal budget and IT team constraints.  Bad news – users must depend more on […]

Posted by R "Ray" Wang on December 22, 2009


Tuesday’s Tip: Why Free Software Ain’t Really Free

Free Software Gimmicks From Some On-Premise Vendors Only Address The License Cost Issue Recently, readers and clients have been approached by on-premise vendors offering free software modules to incentivize new license purchases.  However, free should not be confused with the Open Source (i.e. Freeware) movement, where source code is provided with minimal copyright restrictions.  Free […]

Posted by R "Ray" Wang on October 6, 2009


Tuesday’s Tip: Call Vendors On Their Bluff About “Rev-Rec” And Software Maintenance Contracts

Vendor Sales Reps Keep Using An Age Old Excuse Out Of Habit Many organizations start their Q4 software maintenance renewals process in September.  This has led to a flurry of emails and phone calls about revenue recognition (a.k.a. “rev-rec”) rules for software maintenance contracts.   Apparently, both customers and vendor sales reps suffer from mass […]

Posted by R "Ray" Wang on September 29, 2009


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

Labor Day (US Holiday) traditionally marks the end of summer BBQ’s, the beginning of the fall conference season, and yes, the time to begin a review of your software maintenance contacts that expire end of year.   As clients prepare for this seasonal ritual, a few trends in 2009 should set the stage for negotiations: […]

Posted by R "Ray" Wang on September 1, 2009


Tuesday’s Tip: How To Properly Align Team Incentives In Software Contract Negotiations

In the first step of the original seven simple steps to successfully negotiate software contracts, the key is to have the right team in place.  To refresh everyone’s memory from the March 8th, 2004 post the details for Step 1 are: Step 1: Ensure that the right team is in place Inputs:  Organizational chart and […]

Posted by R "Ray" Wang on August 4, 2009


Tuesday’s Tip: 3 Approaches To Return Shelfware

Declining demand and diminishing output increase the pressure for enterprises to reduce their software license maintenance costs.  As part of a larger enterprise apps strategy, shelfware reduction provides an area for significant cost savings.   However, shelfware reduction is often hard to achieve because many vendors impose: Enterprise wide agreements. These “all you can eat” agreements […]

Posted by R "Ray" Wang on July 21, 2009


Research Summary: An Enterprise Software Licensee’s Bill of Rights, V2

FORWARD AND COMMENTARY “An Enterprise Software Licensee’s Bill of Rights (LB0R) V2” brings the 10th installment of an on-going series to provide clients with insight on how to better align their packaged apps strategies.  Version 2 of the LBoR updates the original groundbreaking list of 36 best practices for software licensing and pricing and provides […]

Posted by R "Ray" Wang on July 14, 2009


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

In the past 2 weeks, emails from 31 software insider readers highlight a growing and concerning trend with support and maintenance contracts.  Vendors concerns about support and maintenance contract retentions has led to new initiatives to consolidate contracts.  At first glance, this may appear to be proactive and beneficial to customers.  In fact, common rationale […]

Posted by R "Ray" Wang on July 7, 2009


News Analysis: Used Software Rights Upheld In SusenSoftware Win Over SAP

A new secondary market for used software has emerged Some time back in December 2006, we wondered why enterprises could not resell unused and used software and transfer related services to a willing buyer under a perpetual license.  Enterprises could resell hardware, telecom equipment, and other services contracts.  So why couldn’t a licensee retain the […]

Posted by R "Ray" Wang on June 21, 2009