Archives

Tuesday's Tip: Use The Organizational Hierarchy Of Needs To Prioritize Apps Strategies

Organization’s face significant prioritization challenges as they plan their 2010 apps strategies.  Faced with shrinking budgets, competing priorities, increased management scrutiny, outdated legacy apps, and uncertain economic conditions, organizations must answer key questions such as: How do I determine which business requirements carry more weight? Where do regulatory requirements fit when compared to other priorities? […]

Posted by R "Ray" Wang on September 8, 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

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

Tuesday's Tip: Drive Cost Savings By Optimizing Commoditized Business Processes

Enterprises continue to transform themselves from the functional fiefdoms of the past and move towards a business process orientation.  As organizations begin that process of documenting business processes, they must differentiate among the 3 major types of business processes.  In key flows such as order to cash, hire to retire, incident to resolution, procure to […]

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

Tuesday's Tip: Seven Signs Your Software Vendor Can't Innovate Fast Enough

Collective support and maintenance, constant innovation, best practices, and improved ROI represent the key arguments that led enterprises to packaged applications such as ERP. Today, this promise appears to be broken as enterprises question the value received for their support and maintenance monies.   In addition, on-premise upgrades require painful testing and down time to innovate […]

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

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

With 2009 rapidly becoming the “Year of SaaS” and the tipping point for Cloud Computing, it’s hard not to notice the growing number of SaaS start ups (along with the legacy application vendors rushing to provide an “On-Demand”, but not really multi-tenant deployment option).  My snarky SaaS bigotry aside, we can expect hybrid deployment options […]

Posted by R "Ray" Wang on June 2, 2009

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

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

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

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

Tuesday's Tip: 10 Suggestions For A Successful Open Source Apps Strategy (Based On Personal Experience Blowing Up My Blog)

Blogging Platforms Provide A Good Showcase For The Power And Benefits Of Open Source Over the past 3 years, I’ve had the pleasure and privilege of experimenting with a variety of blogging platforms.  For my day job, I use TypePad and at night I build this blog with WordPress.  (Prior to that, I used Blogger.)  […]

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

Tuesday's Tip: Software Licensing and Pricing – Get Rid of CPI Escalation Clauses In Maintenance

Consumer Price Index clauses represent additional costs of ownership that should be avoided.  Maintenance typically represents 2 times the cost of the original license fees after 10 years of ownership.  Many customers have these CPI clauses in their contracts.  In the worst cases, customers may have signed CPI + X%.  CPI adjustments provide very little […]

Posted by R "Ray" Wang on December 2, 2008

Tuesday's Tip: Vendor Selection – Deciphering Vendor Provided Customer References

As competition intensifies for new license deals and users are under pressure to be cautious with new spending, all parties should expect increasing pressure for quality customer references.  Customers seeking references should focus on the following areas of relevance: Industry – expect to get down to the micro vertical level Market size – focus on […]

Posted by R "Ray" Wang on November 4, 2008