Enterprise Software Licensing And Pricing Update, Q2 2009

June 1st, 2009

R "Ray" Wang

With contributors:

Meghan Donnelly , Paul Hamerman

Summary

Rapidly deteriorating market conditions led to a shift in the major enterprise apps vendors' overall software licensing and pricing strategies. Forrester examined the status and progress of 12 vendors and their responses to client requests and concerns. The good news: Most vendors focus on proving value and simplifying licensing and pricing. The bad news: Not all vendors can deliver on choice, value, and predictability. As part of all software negotiations strategies, Forrester recommends that clients focus on seven simple steps for success that include: 1) assembling the right team; 2) identifying the key business drivers; 3) aligning with the software ownership life cycle; 4) determining the adoption plan; 5) aligning contract strategy with product adoption; 6) identifying the main leverage points; and 7) finalizing the negotiation strategy.

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