Trends Report

Updated Q4 2010: Check Your Software License Agreement For These Common Flaws

Update Familiar Contract Clauses To Accommodate Technology Changes

December 23rd, 2010
Duncan Jones, null
Duncan Jones
With contributors:
Christine Ferrusi Ross , Rory Stanton

Summary

When working with individual clients, Forrester sees many software license agreements that are seriously flawed. Some common problems: the contracts fail to explain clearly what the buyer has to measure to stay compliant; place unreasonable restrictions on usage and/or deployment; and rely on terminology that will soon be obsolete, if it isn't already. These flaws result in audit problems, unexpected software costs, and, sometimes, legal disputes. Why do so many defects get past the lawyers' reviews? It's because technology is evolving so quickly that many legal terms that software vendors have used for years have become outdated. This report describes the issues that Forrester sees cause the most problems for clients, including some we first reported in 2008 and a few new ones too. It will also suggest what savvy software sourcing professionals can do to improve contracts that they negotiate in 2011, and to identify and mitigate the risks within their existing agreements.

Want to read the full report?

Contact us to become a client

This report is available for individual purchase ($1495).

Forrester helps business and technology leaders use customer obsession to accelerate growth. That means empowering you to put the customer at the center of everything you do: your leadership strategy, and operations. Becoming a customer-obsessed organization requires change — it requires being bold. We give business and technology leaders the confidence to put bold into action, shaping and guiding how to navigate today's unprecedented change in order to succeed.