For Business Process Professionals

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	July 26, 2005 Enterprise Software Licensing Strategies Forrester's Advice To Clients On Protecting Application Investments by R "Ray" Wang with John Ragsdale, George Lawrie, Ian Schuler	Average: 4  (2 ratings)

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Executive Summary

Software contracts between users and vendors are always complicated affairs. Recent trends, such as instance consolidation and supplier reduction, are shifting the balance of power toward the vendors. Before jumping into the vendor selection process, a user company should start by understanding its software life cycle. Considerations should be made for defining a user company's usage rights carefully, addressing changing business conditions, and anticipating future housekeeping issues. Given the complexity of today's contracts, Forrester recommends that these legal documents be reviewed by the company's legal advisor and/or trained procurement negotiators. Users must take action to avoid losing negotiation leverage with initial contracts, as well as renewals.

TABLE OF CONTENTS

• Recognize The Growing Power Of The Vendor
• Understand The Software Life Cycle
• Respond By Empowering Yourself

RECOMMENDATIONS

• Include Licensing Requirements In Your Vendor Selection Criteria

WHAT IT MEANS

• Users Must Shift The Balance Of Power Or Lose Leverage In Future Contracts

ALTERNATIVE VIEW

• Pricing Metrics Will Come Full Circle
• Related Research Documents

This is an excerpt

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