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. […]
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 […]
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.
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 […]
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 […]
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 […]
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: […]
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 […]
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 […]
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 […]
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 […]
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 […]