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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

1 Comment

Monday’s Musings: Trends In The Top Software Insider Posts of 2012 (#softwareinsider)

Thank You For Your Support SoftwareInsider.org generated almost 10 million page views in 2012 (see Figure 1).  This does not include syndication through Constellation Research, Forbes (discontinued in 2012), Enterprise Irregulars, Computerworld UK, and other great media partners. Figure 1.  Software Insider Achieved 9.8M Page Views for 2012 Classic Posts Address The Key Fundamentals In […]

Posted by R "Ray" Wang on January 3, 2013

0 Comments

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

2 Comments

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

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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

9 Comments

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

13 Comments

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

4 Comments

Research Summary: Software Insider’s Top 25 Posts For 2010

Themes In 2010 Reflected The Buy Side Demand For Both Optimization and Innovation Technology buyers in 2010 focused most of their priorities on finding cost savings through legacy optimization, navigating a flurry of disruptive technologies, and designing/experimenting with new business model innovations.  Consequently, the top 25 posts for 2010 reflected these 3 major themes: Legacy […]

Posted by R "Ray" Wang on January 2, 2011

2 Comments

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

7 Comments

News Analysis: DSAG Project Team Members Resign Leadership of SUGEN KPI Working Group

DSAG project team and project leader departure could signal disagreement with methodology not SUGEN SAP embarked on an ambitious program to prove value in its Enterprise Support fee hike last year.   As planned, SAP should announce the results for the first set of SUGEN KPI’s in early December.  However, two key SUGEN KPI project […]

Posted by R "Ray" Wang on November 30, 2009

0 Comments

Speaker Notes: Keynote – SAP UK & Ireland User Group Conference 2009

Building Innovation With And Around Your SAP Environment Location: Manchester CentralAuditorium Date:23/11/2009 Start Time: 16:25 End Time: 17:00 Speaker: R “Ray” Wang Company: Partner with Altimeter Group Keynote summary: Pace of change continues to increase in market forces, work dynamics, business models, and pace of technology adoption. Innovation is essential in this market. There’s a […]

Posted by R "Ray" Wang on November 25, 2009

4 Comments

Event Report: SAP UK & Ireland User Group Conference 2009

SAP users in UK and Ireland remain equally skeptical about SAP (Photos by R Wang & Insider Associates, LLC.   Copyright © 2009 All rights reserved.) The SAP user group hosted its annual event.  Conversations with 37 clients reflect the following broad trends in the UK and Ireland: SAP users remain skeptical about benefits promised […]

Posted by R "Ray" Wang on November 24, 2009

2 Comments

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

Connect.  Collaborate.  Innovate. Welcome to the first of many Altimeter Group research reports.  Before you dive deep into the Customer Bill of Rights: Software-as-a-Service report, we wanted to share with you a bit about the research process and how we work within the community. Connect.  We strive to bring new people together and share our […]

Posted by R "Ray" Wang on October 12, 2009

35 Comments

Thursday’s Thanks: Customer Bill of Rights – Software-as-a Service

This post has been cross posted on the Enterprise Advocates blog A New Way Of Creating Research – Collaborative Input And Review Some time early next week, we (i.e. Altimeter Group’s Jeremiah Owyang and I) will be publishing a Customer Bill of Rights – Software-as-a-Service.  Through the generous input of 57 collaborators and organizations, this […]

Posted by R "Ray" Wang on October 8, 2009

1 Comment

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

6 Comments

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

2 Comments

Vendor Event: Soft Summit 2009

Title: Vendor Event: Soft Summit Location: The Sheraton Palace Hotel, San Francisco, CA Link out: Click here Start Date: 2009-10-21 Start Date: 2009-10-22 Description: What is SoftSummit? Agility and Insight. Profitability Today! “SoftSummit has a great mix of practitioners, looking at licensing from an end-user and a vendor perspective and has a great deal of […]

Posted by R "Ray" Wang on September 5, 2009

0 Comments

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

2 Comments

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

0 Comments

Monday’s Musings: Users Now Expect More Advocacy From Their User Groups

Many user groups currently meet the basic requirements… Today’s independent and vendor sponsored user groups serve a key role in building community among a common interest group.  Typical mission and objectives often include: Creating an environment to share information and best practices Exposing issues and limitations with a vendor’s product and partner solutions Soliciting member […]

Posted by R "Ray" Wang on August 3, 2009

1 Comment

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

7 Comments

Quips: The Fervor Over Vendor Sales Tactics

Blogosphere highlights broken software vendor business models What a crazy few days in the blogosphere!  Economic pressures force clients to become more attuned to the business models of software vendors.  Vendors have amped up sales tactics as they face earnings pressures.  Fellow colleagues in the analyst/blogger/media world have responded in full force to the observations […]

Posted by R "Ray" Wang on April 17, 2009

1 Comment

Research Summary: Shape Your Apps Strategy To Reflect New SaaS Licensing And Pricing Trends

FORWARD AND COMMENTARY “Shape Your Apps Strategy To Reflect New SaaS Licensing and Pricing Trends” represent the seventh report in an on-going series to provide clients with insight on how to better align their packaged apps strategies.  As more and more clients seek SaaS solutions as options to pipe in innovation and potentially control costs, […]

Posted by R "Ray" Wang on April 16, 2009

0 Comments

Speaking Engagement: ZDNet Japan Business Applications Conference

ZDNet Japan Business Applications Conference Bellesalle Yaesu, Tokyo, Japan June 10, 2008  13:00-18:00 R “Ray” Wang Keynote Speech: Insights Into Building A Recession Proof Apps Strategy ZDNet Japan ビジネス・アプリケーション カンファレンス 不況だからって、アプリケーションを止められますか? いうまでもなく、不況です。不況はITコストの削減を生みます。しかし、いまや、ITは止められないばかりか、進化を続けなければなりません。 企業は情報システムへの投資をこれまで通り続けられない状況にあります。こうした状況においてこそ、情報システムを真剣に考え直すべきです。本イベントでは、そのなかでも、最もビジネスに近い層であるビジネスアプリケーションについて議論します。 小さく導入したアプリケーションを統制・連携するためのアーキテクチャーとしてはSOA、ビジネスの効率化をITに実装するためのBPM、所有から使用への新たな選択肢として脚光を浴びるSaaS…… 不況下でも企業が情報システムにできることはたくさんあるのです。 » 来場事前登録はこちら 開催概要 名称 ZDNet Japan ビジネス・アプリケーション カンファレンス 開催日時 2009年6月10日(水)  12:30開場  13:00開演 場所 ベルサール八重洲 [会場について] 参加費 無料(事前登録制) 定員 300人 対象 CIO(情報に関する資源の統括、戦略立案、実行する責任者の方)/IT部門のマネージャ/業務でERP、CRM等アプリケーションに携わる方 特典 「来場者アンケート」にご回答いただいた方にQuoカードをプレゼントいたします。 […]

Posted by R "Ray" Wang on April 10, 2009

0 Comments

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

Recession creates an opportunity for frank vendor – client discussion A fine equilibrium exists between the vendor’s success and a client’s success.  Its time for the enterprise software industry to have a frank and honest conversation about software costs and vendor business models. To date, comparing cost among different vendors remains difficult as license, maintenance, […]

Posted by R "Ray" Wang on April 5, 2009

6 Comments

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

Maintenance costs represent a major part of the software budget and the largest growing source of revenue for software vendors.   In fact, an aggregation of the past four quarters of software vendor financial results definitively demonstrates double digit declines in new license revenue, even more exacerbated by the evils of currency flux from the […]

Posted by R "Ray" Wang on March 24, 2009

7 Comments

Tuesday’s Tip: Software Licensing and Pricing – When Software Contract Negotiations Strategies Should Be Led By Domain Experts

A common question asked by readers of this blog is when should vendor contract negotiations be led by a domain expert and when should this be led by a procurement professional?  As the complexity of the technology topology increases, expect a multitude of domain experts in roles such as application specialists, business process experts, enterprise […]

Posted by R "Ray" Wang on March 10, 2009

6 Comments

Poll/Survey: It’s Time To Update The Enterprise Software Licensee Bill of Rights!

Now’s The Time To Assert Your Rights With the market now in favor of the enterprise software licensee, its now time to update the Enterprise Software Licensee’s Bill of Rights to include newer topics such as virtualization, SaaS and subscription pricing, newer usage based pricing models, open source, and vendor lock-in avoidance.  As mentioned in […]

Posted by R "Ray" Wang on March 5, 2009

5 Comments

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

In several contract negotiation support calls this month, clients have discovered interesting language in their contracts designed to prevent them from choosing a third party maintenance option.  The language is often buried deep into the legalese and many unsuspecting clients may sign without understanding the future implications in the software ownership life cycle and the […]

Posted by R "Ray" Wang on February 10, 2009

6 Comments

Tuesday’s Tip: Software Licensing and Pricing – Now’s The Time To Remove “Gag Rule” Clauses In Your Software Contracts

Vendors Find New Ways To Limit Access to Third Party Advisers Conversations over the past 3 months with clients about their software contracts highlight some egregious licenses practices by software vendors.  Here are some examples of gag rules that some vendors have recently attempted and successfully put into contracts: Limits on third party negotiation support.  […]

Posted by R "Ray" Wang on January 27, 2009

5 Comments

Research Summary: Five Steps To Building A Recession Proof Packaged Apps Strategy

FORWARD AND COMMENTARY The five steps to building a recession proof packaged apps strategy represent the sixth report in an on-going series to provide clients with insight on how to better align their packaged apps strategies.  Aligned with operational efficiency and regulatory compliance business drivers, these best practices provide a road map for more efficient […]

Posted by R "Ray" Wang on January 19, 2009

2 Comments

Monday’s Musings: Call to Action – Updating The Enterprise Software Licensee’s Bill of Rights

Software Ownership Remains Unusual, Onerous, and Restrictive Software licenses are truly unique.  Licensee’s can not resell, reuse, or share their licenses with others. For example, enterprises easily reuse, resell, or share tangible assets such as hardware, telecom equipment, and storage. From both a replacement and life-cycle perspective, leases for assets such as telecom equipment incorporate […]

Posted by R "Ray" Wang on December 15, 2008

10 Comments

News Analysis: Multiple Factors Lead to Shifts in Oracle List Prices

Dollar Based Pricing Drives the Bulk of Recent US Based “Price Increase” On June 16, 2008, Oracle updated its localized price lists and software investment guide. Applications previously priced at $3995 per user rose 13.1% to $4595 per user in US dollar terms. Database pricing increased 18.75% from $40,000 per CPU to $47,500 per CPU. […]

Posted by R "Ray" Wang on June 17, 2008

1 Comment

Best Practices: A Work Plan To Successfully Negotiating Software Contracts (Part 2 of 2)

You are reading a post originally published on March 1, 2004 from an older blog on the old www.raywang.org site.

Posted by R "Ray" Wang on March 13, 2004

0 Comments

Best Practices: A Work Plan To Successfully Negotiating Software Contracts (Part 1 of 2)

You are reading a post originally published on March 1, 2004 from an older blog on the old www.raywang.org site.

Posted by R "Ray" Wang on March 8, 2004

0 Comments

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