The Hidden Surprise in Microsoft Software Assurance

 I have a confession to make...I am revisiting one of my old blog posts. But, when you've been blogging on a topic for over 14 years you would be amazed at how "everything old...is new again" and that applies particularly to Microsoft Software Assurance (SA).

Software Assurance (SA) is known by many as an upgrade and added benefits plan that gets added to a license when it is purchased (if you purchase SA or for any software license purchases made on an Enterprise Agreement). It includes a number of benefits but of particular interest is License Mobility on application servers (such as Microsoft SQL Server) which is the benefit that can help control the number of licenses required in a virtualized setting.

But what you may not know is that Software Assurance (SA) essentially refreshes your underlying license every time you renew. So, the license you bought in 2005 for Microsoft SQL Server (and maintained with SA) will get renewed yet again at your next renewal - to the most current Microsoft Product Terms.

Why is that important?  Typically the licensing rules that apply to software is dependent upon the version you have installed.  However; even if you have an old version installed (like Microsoft SQL Server Enterprise 2005) if you renewed SA on that server in 2020 then you need to apply SQL Server 2019 licensing rules to that install.

This may lead you to want to not have SA on an older server - that is fine if it is a standalone server (physical server or a virtual server that is not allowed to move between hosts) but if not, chances are you require the benefits of SA to be appropriately licensed.

Questions on your licensing and SA - let us know and we'll be happy to help.

Software Contracts - in a Pandemic led Recession

OK, so I am not a financial expert - but if our current world-wide pandemic (COVID-19) does not put us officially into a recession then I will be extremely surprised.

Frankly, I think we are already there - experts are debating.  I'll leave it to them to figure out and in the meantime speak to you about your software contracts and what to think about them in a recession.

As we all know, the US was in a recession just a few short years ago and it was a doozy!  But at that time many companies still had not made the transition to subscription based licensing for most of their business productivity software.

Think about your companies software contracts today - Adobe, Microsoft, Autodesk, Oracle and others on your productivity software are probably all heavily subscription based today.  On your infrastructure/platform software they are also probably heavily "hosted" or subscription based.

Why is this point important in a recession?  Old licensing models were perpetual licenses with maintenance. In most circumstances you could continue using the software regardless of whether or not you maintained the maintenance. So in a recession, if you could get out of the maintenance contract you were arguably still in business. If you are tasked with saving money on software costs your options are more limited in a subscription world.

Subscription licensing models is a pay as you go model.  While that is useful in moving costs to the expense line rather than amortizing it also means you must continue paying or you can no longer use the software.  Your software vendors are now in the drivers seat (although here is a very interesting read on the financial impact of this for software companies by Gavin Baker which I thoroughly enjoyed and you might,too).

So, here are some keys to consider:

• Are your subscription users going to be reduced?
• Inventory your existing contracts to know specific clauses and dates:
• Many multi-year software contracts have an option to reduce subscriptions on an annual basis as long as you do it by the prescribed deadline. 
• Some also have an option for reduction based upon a reduction in force.
• When are your contract expiring for those that do not have a built in reduction option?
• How will this impact your hosted infrastructure/platform needs? Make sure you are aware of those contract terms and dates as well.
• If your user base is not expected to be reduced, will you be asked to cut costs regardless?
• Look for the fat in your current contracts.
• Identify critical vs nice to have suites
• Ensure you are leveraging your legacy licensing benefits when available in your hosted environments.
• Those software audits that have slowed down over the past 2-3 years, expect them to gear back up in different fashions:
• Microsoft - do not be surprised for a server focused "assessment"
• Adobe and Autodesk - I expect to see them come back around to see who still has old on-premise software that is not covered under the existing subscriptions.
• Micro Focus - remember all that software they picked up in the deal with HP Enterprises? They have already been an active auditor, expect that to continue or pickup.

We know the pandemic is hitting us hard, but we cannot afford to be so distracted by life or death news (she says, sadly and somewhat sarcastically) that we get caught by surprise by the longer term economic impact we will all be facing.  If you need a refresher just go back to my blogs from 2007-2010 such as this one.

While each turn is unique, there are aspects that are the same...with over 21 years in the Software Asset Management business Cynthia Farren Consulting can help. Reach out to schedule a conversation with me to discuss a game plan for your organization.

Stay safe and stay well...

Microsoft Next Generation Licensing Agreement (NGVL and MPSA)

A light buzz is going around the Microsoft licensing world about the NGVL (Microsoft Next Generation Volume Licensing) and a new agreement called MPSA (Microsoft Product and Services Agreement). I mention both terms because many of the resellers I've talked to have often known that NGVL was available but thought the MPSA wasn't or vice versa.  This confusion should rapidly diminish but for now, find that it helps for clarification.

The NGVL and MPSA has been available for some time and the beauty of it has been that unlike the Microsoft Select Plus Agreement it allows for online subscriptions.  The bad part was that it didn't allow for Software Assurance purchases.

As of September 2, 2014 Microsoft now allows for purchases of Software Assurance under the MPSA.

It has been a long time since Microsoft has really created a new licensing agreement (the Microsoft Select Plus was in my opinion more of a re-write of the Microsoft Select Agreement) and frankly their offerings have changed substantially during that time so the old agreements were having to be "massaged" to work with current offerings.

Basically the MPSA has many pluses, but the contract language also leaves me very uncomfortable around certain areas - so if you're looking to update your Microsoft agreements take a good look at this agreement but be sure to read the contract carefully and negotiate terms you can actually live with.

The MPSA is designed to cover all products you buy from Microsoft; perpetual licenses, software assurance, subscriptions and services.  That's great and can really provide you with streamlined management but the problem is whenever you lump disparate products together the contract language can get messy.

For example, if you think of your classic "services agreement" and compare that to your "software licensing agreement" there are many things you will accept for packaged software (such as warranty) that doesn't fit what you would require from your consulting services agreement.  However; in this contract they are the same (but they did provide a way around it...you just have to make sure you're aware of it and follow through on it when you're executing the work orders).

Audit clauses have also been updated - this is a subtle change that has happened over the years in the Microsoft Master (Business or Services) Agreement taking out the wording that required them to use a major auditing firm in performing an audit...in my opinion this lays the ground for them to be able to use any Microsoft Partner to perform audits, I don't necessarily feel that change is advantageous to companies.

I'll be going into further details in a later posting but wanted to give an initial "heads up" for anyone thinking of either signing an MPSA or who's in the middle of determining their Microsoft licensing strategy and were unaware that there is a new player on the field that might offer them substantial benefits.

As always, if you are looking at your Microsoft licensing strategy or are considering signing a new agreement with Microsoft (or are being audited under an existing one) it's a good time to get some expert help from an independent third party. I live and breathe Microsoft licensing (I know...but what can I say - we love puzzles!) and am happy to help - contact me to find out how we can help you.

Renewing Microsoft Software Assurance - Know the Implications

Upgrade rights are included but so are updated rule requirements

 A frequently misunderstood area of Microsoft licensing is knowing what rules apply when you are utilizing downgrade rights (the right to install an earlier version of the product under a newer license).

The version purchased determines the use rights regardless of what version is installed.

However; this gets a little more confusing for companies who maintain Software Assurance on their products.  For example if a customer bought a license for Microsoft SQL Server Enterprise in July of 2011 with Software Assurance (we’ll assume 3 full years of Software Assurance) they would have bought the rights to Microsoft SQL Server 2008R2 Enterprise (either per server or per processor) and enjoyed upgrade rights to later versions of that product. If they choose to run 2008R2 (or an older edition), then the 2008R2 rules would apply. If they choose to upgrade to 2012 then the 2012 rules would apply.

In July 2014 that customer will need to decide if they are going to renew Software Assurance.  As soon as they renew Software Assurance they are in essence refreshing the license version of all products with Software Assurance to the current edition.  Therefore, they would no longer get to leverage the rules from 2008R2 they would now have to follow the rules for Microsoft SQL Server 2014.

There are both advantages and disadvantages for customers but the important thing for customers to remember is that renewing Software Assurance has a licensing impact which should be considered so that you are not accidentally put in a position of being non-compliant.

Just one more thing to consider in your due diligence when determining what products to renew Software Assurance on at your next renewal.  Let us know if we can help!

Software Audits - Be Afraid...Be Very Afraid!

OK, so I know the title is a bit "doom and gloom" - but frankly I've seen too many companies over the years get seriously bitten during software audits because they didn't have a healthy respect for the risk when they first accepted the audit (and for the sake of this article...I'm calling it an audit any time you share your installation data with a publisher or anyone representing the publisher).

First, I do not recommend going through one alone. That would be like going to an IRS audit alone - there are far too many obscure rules that can come back to haunt you. Get professional help before it starts and keep that help around through completion...very few rules are "black and white" and you need an advocate on your side who fully understands the rules and can balance the publisher's interpretation of use.

Here are a couple of things to know before heading into an audit:

1. Not all audits are the same - know when you have the right to refuse or limit and when you've already waived those rights.
2. Make sure the scope is clearly defined - is it all subsidiaries, all geographies, etc.
3. Require a project specific non-disclosure agreement (NDA) be in place with any third-party gaining access to your information and follow up at the end of the audit to require disposal of the records.
4. Understand under what circumstances you'll be billed for the cost of the audit.
5. Ensure that the audit is being conducted under the rules of your active agreement with the publisher and the pertinent product use rights for the products in use.

There are many more, but this is a start.  The ITAM Review has a number of useful articles on this topic that you should consider reading as well.

Pitfalls to be aware of to avoid audit problems:

The best possible situation is to avoid an audit altogether.  While this is becoming more and more difficult as publishers have realized that audits are a profitable activity that helps them meet revenue goals (most of the heads of software publisher compliance groups have revenue goals much the same as a sales group), there are steps you can take to reduce your chances of an audit.

1. Regularly conduct your own audit. Know what you own, what and how you are using it. If contacted for an audit, be sure that your executive handling the conversation can speak knowingly and authoratatively on current usage by product and the timeliness of that data.  Software publishers don't want to throw their money away on an audit that is going to produce no licensing revenue. The more they feel that you already have things under control the less likely they are to require a full onsite audit.
2. Watch your external access, make sure you are appropriately licensing clients, vendors and partners for their access to your computing resources.
• If your customers are using your computing resources, make sure that you are covering that usage under the appropriate licensing agreement.  Most publishers have service provider agreements (Microsoft's SPLA or VMWare's VSPP program being two of the most common) allowing for you to host their products for use by others - there is a lot of gray area in determining when you need to license under these versus when you can use perpetual licenses so make sure you have a professional help you make this determination.
• Licensing is typically entity specific. While everyone in my organization is licensed to use a Microsoft Windows 2012 server within my organization that licensing does not cover us for when we access a client's organization.
• There are expensive ways of handling this and less expensive ways - having licensing advice when you're setting up access can help you avoid unnecessary costs.
3. Minimize OEM and non-volume purchases. Frankly, publishers regularly mine their entitlements data on clients to determine inconsistencies for compliance issues.  If a publisher can't see a full picture of your purchases it can increase the chances of an audit.
4. Keep your purchasing records. If you are still using the software (or it's successor if that successors licensing is based upon the original purchase), then you need to have ready access to your proof of purchase. Consider for example Attachmate the owners of some (current and) legacy emulation software.  They audit on a regular basis - can you demonstrate that you purchased the 50 copies of KEA or myEXTRA! that you still have running in your organization?  If not, the cost to buy new licenses can include interest based upon when the software was originally released.
5. Pay attention to country of usage rules. Most publishers have some restriction on using software in a  country other than the one purchased.  Autodesk, VMWare and Microsoft (under the Open licensing program) all restrict usage across geographical boundaries.
6. Understand transferability rules of licenses during mergers, acquisitions and divestitures. For example, Autodesk states that their licenses are typically not transferable and have the right to refuse a request for transfer, if they do accept the transfer they can require that subscription costs be added to the license.

Already in an audit:
Regardless of what stage the audit is in, get help.  Make sure you have someone working as your advocate that has experience in software audits, strong knowledge of the publishers current and historical agreements and product use rights and the frankness to give you an accurate picture of where you stand (this is not the time your management team wants anything sugar coated...they need to know the reality so they can prepare).

Double check everything the auditors present to you - math errors and mis-interpretation of product use rights and licensing terms are frighteningly common.

Software Audits - Beware of the Unknown!

While most of our business is focused on helping companies optimize their licensing and avoid compliance risks there are times a company comes to us when they are in some stage of being audited (whether it's called an audit or not for purposes of this posting I will refer to it as an audit anytime a third party is reviewing your licensing not at your behest).  We come across a number of areas that "surprise" customers to find out it's a compliance issue.

Take a look at the following - if any of them apply to your company, take steps to resolve these:

• Own one edition but a different edition is installed.  Do you own Microsoft Office Professional but have Microsoft Office Standard installed?  If so, you are out of compliance (and no, don't count on them to look the other way). 
• Changing the hardware that you run your Oracle database on without checking to see what it does to your core factor in determining processor licenses required. Did you move to a Sparc 4 from a Sparc 3? You just doubled your core factor...Oracle US License Agreements
• Not understanding the minimum number of users that need to be licensed (contractual requirement versus actual usage). What did that (above mentioned) increase in processors just do to the number of users you're required to license?
• Server mobility in a virtual environment. For example, did you reassign your Microsoft Windows Server Standard licenses to your virtual environment? That's fine (assuming they weren't OEM licenses) as long as you are not using VMWare's V-Motion (or similar technology).  You can only reassign licenses once every 90 days in the Microsoft server operating system world - you might accidentally be drastically increasing your licensing needs by "harvesting" that Standard license versus appropriately licensing the virtual environment.
• Did you turn on enterprise functionality in your Microsoft SharePoint Server? If so, are other instances of SharePoint inheriting that enterprise functionality without your knowing it?  The enterprise functionality in Microsoft Sharepoint requires a Microsoft Sharepoint Enterprise CAL (client access license, this CAL is also contained in the Microsoft Enterprise CAL Suite).
• Do you have Mac's in your environment? Are they accessing a Microsoft Windows OS? How are you licensing that?
• Are you on an Enterprise Agreement (Adobe, Microsoft, Oracle, etc) and not including all devices in your environment? Check your agreements, unless it specifically allows you to exclude something these agreements typically require you to license all devices - read your fine print!
• Re-imaging devices using the wrong media. The quickest way to get out of compliance in a material way is to have the wrong media loaded to your image. Make sure this is in alignment and that a change control process is followed for any changes to the image including a licensing review.
• Are you assuming downgrade rights? For example, most Attachmate products do not have downgrade rights unless you have maintenance. Don't assume this right.

If you are asked (or told) that someone will be reviewing your licensing - get help before it starts. This is not the time to rely on your internal team unless they are licensing experts and stay current on all the publishers in your environment.

The ITAM Review has a great article series on the topic of "What REALLY Happens During an Audit", I recommend reading it whether you're going through one or just looking for more information.

Microsoft Enterprise Agreements - Microsoft SQL Server Strategies

In case you haven't heard it yet, Microsoft SQL Server 2012 is going to contain some major licensing changes. Customers with existing (or new prior to the release of SQL Server 2012) Enterprise Agreements (EA) or Enrollment for Application Platforms (EAP) with SQL Server included on those agreements have some great opportunities right now but should be working out a strategy to meet their current and projected needs.

If you're unaware of the changes, check out our blog on Network World to find out more details.

If you have SQL Server Enterprise on your EA or EAP before the release of the 2012 version you can continue to purchase the same licensing model until the end of your agreement. In other words, even though the SQL Server Enterprise server and Client Access License (CAL) model will disappear with the release of 2012, if you already have that model on your EA or EAP you can continue buying under that model until your agreement ends. Additionally, if you have SQL Server Enterprise processor licenses on your EA or EAP, you can continue to purchase processor licenses (rather than core licenses) through the end of your agreement.

This presents a number of opportunities for organizations to save money moving forward but having a strategy will be key! If you don't already have these products on your EA or EAP, you might want to consider if you should add them prior to the release of Microsoft SQL Server 2012 (as opposed to waiting until your next true-up which might mean you miss an opportunity). 

As always, let us know if we can help you create a Microsoft licensing strategy that is most beneficial to your organization!

Microsoft Windows Server Price Increase? Check Your Sources!

It has come to my attention that one of the large resellers is telling their US clients that Microsoft will be doing a 15% price increase on Microsoft Windows Server products effective January 1, 2012. The information I've received is that this is not accurate, that it does not apply to the US (Latin America may want to check into it though). 

However; I'm not a reseller and I'm not Microsoft so I don't have access to price lists. So, the point of my story? Check your sources! If one of your resellers is giving you this advice, please check it out with another reliable reseller and with your Microsoft account team. 

 Additionally, if your reseller does give you this type of wrong advice...might be time to re-evaluate resellers. Yes, everyone can make mistakes - but I'll tell you frankly, this reseller has been on my list of "least desirables" for a long time due to some of their practices and this just put a nail in their coffin for me. 

Happy Holidays - and here's hoping that January doesn't bring a price increase on Microsoft Server products!

Microsoft Revamps Partner Program – Costly licensing impact on Partners?

Microsoft has a very generous internal use license program for its partners. In generalities, a Microsoft Certified Partner gets 25 copies of most all desktop software (and Client Access Licenses – CALs) and 1 or 2 server licenses each for most server technology for internal use in the form of annual license grants; a Microsoft Gold Certified Partner gets 100 copies of most desktop software and 1 to 5 server licenses each for most server software. There are additional license grants based upon expertise “competency”. These amounts can be multiplied by each location that qualifies at the same level as the overall company up to a maximum (along the lines of 500 desktop and 2 to 25 servers for Microsoft Gold Partners). 

 These license grants are obviously very valuable to Microsoft Partners in helping them minimize the cost of running their organization. However; Microsoft is now changing their partner program (for the first time in a long time) which will end up reducing the number of internal use software license grants for most partners. The new Microsoft Partner Network will replace the designations of Registered, Certified and Gold Certified with Subscriber, Competency and Advanced Competency. While there are some changes at the Registered and Certified levels (Subscriber and Competency) as it pertains to licensing the real impact comes to Gold Certified Partners who will not qualify for the Advanced Competency designation. $300k Example: One of my Software Asset Management customers is a Microsoft Gold Certified Partner with 1 additional enrolled location and several competencies. This entitles them to about 200 copies of most desktop software and CALs and a number of server licenses including 10 Microsoft Windows Server Enterprise license grants and 8 Microsoft Windows Server Datacenter processor license grants. However; this company will not qualify as an Advanced Competency partner so will instead drop down to a Competency Partner (think Certified Partner). Assuming they continue to have 1 additional enrolled location this will drop their license grants to 50 copies of most desktop software and CALs and about 2 server licenses for some servers (Microsoft Windows Server Datacenter will not be included). The financial implication of this is over $300k. 

Even those partners that do not lose their current level in the program will feel some impact from licenses being excluded from the core licensing (for example, Windows Server Datacenter edition will not be part of the core licenses). One of the hardest challenges is that IT typically manages the licenses and yet the business typically manages the partnering relationships. If these impacts are not discussed between both teams internally there could be a large number of former Microsoft partners who are now out of compliance in their licensing. 

Understanding the Dates: Each year partners have to re-enroll in the program. Those partners who re-enroll prior to 10/10/2010 (now changed to end of October) will be renewing under the existing designations of Registered, Certified or Gold Certified and will have their annual license grants based upon that enrollment. At their anniversary date in 2011 their licensing grants would change. For partners who re-enroll after 10/10/2010 (now changed to end of October) they will be renewing under the new designations and the new licensing grants will take effect. There are other changes that take effect regardless of enrollment status effective 10/10/2010 (now changed to end of October) so please be aware that this information is only as it pertains to license grants. 

What to Do: Obviously it is very important for current Microsoft Partner’s to clearly understand the requirements of the new program and where their company will fit within this program. Microsoft is doing a lot to help and their Partner desk is extremely helpful so leverage these resources! Take a good look at the license calculator tool to determine what your new license grants will be and start the budgeting and communication process internally to avoid a surprise hit to your software budget next year. If things get too confusing or time consuming, consider hiring a professional to handle the transition for you.

Microsoft SQL Server 2008 R2 Licensing Changes - CALs Also!

(Updated 5/18/10 based on info from Microsoft)

I heard an ugly rumor yesterday about Microsoft SQL Server 2008 R2 from Gaby Amar at Softmart saying that in order to use SQL Server 2008 R2 in a server/CAL model you will have to have 2008 R2 CALs as well (typically for R2 releases you don't need an updated CAL). Well...checked it out with Microsoft licensing and he was absolutely correct (I should have known better than to be surprised, LOL)!

Basically, Microsoft SQL Server 2008 R2 is a major release (think in terms of a release such as Microsoft SQL Server 2000 to Microsoft SQL Server 2005) so don't let the lack of year change in the naming convention fool you.

Customers who have active Microsoft Software Assurance on their exisiting SQL Server products will have the new release rights, but those that don't will need to purchase new licenses in order to run the software (for those who run in Server/CAL mode this means both new server licenses and new CAL licenses).

CAL Requirements

1. If you have Microsoft Software Assurance currently in effect on your SQL Server CALs, then you are entitled to SQL Server 2008 R2 CALs
2. If you do not have Software Assurance, you must have SQL Server 2008 R2 CALs to run SQL Server 2008 R2 using the Server/CAL software licensing model (in other words...don't try to run with your older SQL Server 2008 CALs).

You may be wondering why I'm making such a big deal about this...after all it is a new release, of course new licenses are required. My point is this: it is a departure from how Microsoft has licensed Windows Server 2008 and Windows Server 2008 R2 where the Windows Server 2008 CAL can still be used on the newer version Windows Server 2008 R2.

Additionally, there are changes to the processor licensing for SQL Server 2008 R2. You might want to check out some of these resources for more information on this and other SQL Server 2008 R2 changes.

Microsoft has provided the following links for further information on licensing:

• The SQL licensing quick reference guide: http://www.microsoft.com/sqlserver/2008/en/us/licensing.aspx
• Direct link to the guide: http://download.microsoft.com/download/2/7/0/270B6380-8B38-4268-8AD0-F480A139AB19/SQL2008R2_LicensingQuickReference-updated.pdf
• Overall SQL Server 2008 Licensing FAQ: http://www.microsoft.com/sqlserver/2008/en/us/licensing-faq.aspx
• Microsoft SQL Site: http://www.microsoft.com/sqlserver/2008/en/us/
• Product Use Rights has info on the following products: R2 CALs (OCS, System Center Configuration Manager, System Center Operations Manager, System Center Virtual Machine Manager) http://www.microsoft.com/licensing/about-licensing/product-licensing.aspx

For more information on virtualization and SQL Server 2008 R2 check out Andrew Fryer's blog.

If you have any questions - let me know! This is a huge change in Microsoft's licensing trend.

Software Licensing - 2010

Wow, can't say I'm upset to see the end of 2009! Having been in business since 1999 I've seen some ups and downs (think California, technology, early 2000's...ouch!) and am happy that with business maturity comes a certain tolerance to economy and business shifts...but I'm ready for this year to be over!

What's in store for licensing in 2010? I think we will continue to see a lot of acquisitions occur this year - which means eventual changes to volume licensing agreements. Be sure to keep an eye on mergers, acquisitions and divestitures to see which of your software licenses are impacted. It typically takes at least a year for any changes to volume licensing agreements but it might have a big impact on your maintenance decisions.

For Microsoft users there will be several new releases this year in Office, SharePoint and SQL Server to name a few. SQL Server is also being purported to have a couple of new editions and changes to some of the licensing terms (in particular SQL Enterprise and SQL Datacenter edition). Be sure to keep a close eye on these, especially if you have a virtualized model.

SaaS will continue to feel it's way and don't be surprised to hear more about the Microsoft Enterprise Subscription agreement...an agreement that has long existed but (in my opinion...as is all of this blog) wasn't priced well for most businesses.

Also, for those renewing Microsoft agreements there are some changes to your terms and conditions that you might not be aware of...the loss of the 30 day "grace" period on renewing of Software Assurance and an increase to 90 days for notice of change of reseller (hint, this determines who gets paid for your purchases and impacts any incentives resellers will offer to you - be sure to handle this on a timely basis if changing. You don't want the reseller you're "firing" to get paid for the renewal you do next month.)

What do you expect to see happen with software in 2010? Any licensing trends you know are happening or changes to PURs?

Ways to Cut Costs - Software Licensing

It's funny - when times are lush, companies feel they don't have the time to put in a SAM program...when times are tight, companies feel they don't have the money to put in a SAM program.

Unfortunately, it's a Catch 22...if you had a SAM program, your staff would have more time because they would be more efficient and you'd have more money because you wouldn't be wasting it on higher maintenance fees and over priced products.

Sorry, I'm on my soapbox and I know it. Just remember, it doesn't take as much time or as much money as you think it does and the benefits far outweigh the costs.

Two recent items have come up that impact the costs of software licensing:

1) Microsoft Financing - they've just changed the rules.
2) Webinar Series "Cutting Costs - Software Negotiation"

Microsoft Financing (for those of you who didn't know it, Microsoft will finance your deals that involve purchases of Microsoft software as well as hardware and other services) has changed the rules a bit. It used to be that you didn't have to buy much software to finance your whole deal...apparently they are now going to require that at least 35% of the deal be for Microsoft software. Read the details for Scott Bekker's blog.

Webinar Series on cutting costs through software negotiations. For 10 years we've been helping our clients cut their costs (after they've already internally negotiated the deals). We're now offering a webinar to help teach you some of our techniques. This series isn't about contract law, it's about understanding the insides of the deal and turning it into cash and benefits for your company.

So, I know many of you are trying not to spend money right now on software...don't forget - those annual maintenance agreements you're paying is still spending money and many of them can still be renegotiated to lower your costs!

Here We Go Again...

Let's take a walk down memory lane....the year is 1994 and a mid-size national firm (1,200 PC's) has a new software manager who realizes that the firm needs to be buying their software on a volume license, so she starts down the path of finding out everything she needs to know to make this happen.

Since there's no one she can find who can educate her on this, she turns to her reseller...who invests a lot of time and energy into educating her. Finally, time comes to seal the deal and another reseller walks in the door and tells her a few more things that the first reseller didn't tell her....things that would have a strong impact on the financial viability of the purchase.

Time passes, this software manager continues to learn and comes to realize that there were even more things she should have been told that neither reseller told her...that money was lost on the deal because she hadn't known them when the deal was made. Unfortunately, there hadn't been anyone to advise her that didn't have a vested interest in the deal.

Fast forward to 2008, that software manager (and yes...that was me) would no longer have to rely on the advice of a reseller...there are instead a number of small Software Asset Management (SAM) consulting firms that would appropriately advise her on all important aspects of the deal - helping her make the right choice and the best deal for her business.

However; we have to be careful that this valuable source of independent information remains available to consumers.

Most major resellers are now starting up SAM consulting businesses in response to publisher requirements. Here's the problem with that...since consulting isn't the primary business line a reseller can price their consulting services at a price that an independent firm can't compete with...and the next thing you know, the only source of information for you on that major purchase is someone who has a vested interest in the outcome...

Are we coming full circle? I hope not - the reason I started my firm in 1999 was because I saw a need for companies to have someone on their side of the deal....whether it's me or another small SAM firm, I don't want companies to lose that independent perspective.

What are your thoughts?