It seems in a number of my recent conversations with a major software publisher (who has one of the most complex licensing structures going)...that they keep referencing companies that "Game the System" and what a wrong thing that is to do.
Question - when they make the rules, can you really ever "Game the System"? Don't get me wrong, we specialize in helping customers get creative with how to reduce their licensing costs for their software...but if it's allowed within their convoluted licensing terms, how can you be doing anything wrong?
Take the IRS for example (since it's April 15th), their rules are complex (far more complex than any software publisher) but they expect you to take advantage of every credit that you are entitled to through their rules. They don't call foul and say you're "Gaming the System" when you take advantage of rules that work in your favor. Why should a software publisher?
LOL - yes, I did just compare this software publisher to the IRS...LOL!
Frankly, the ones who write the rules hold the cards - if you can work within those rules and minimize your costs, who are they to complain? If they don't like it, they can change their rules.
What do you think...is it possible to "Game the System" in a negative way?
Showing posts with label volume licensing. Show all posts
Showing posts with label volume licensing. Show all posts
Thursday, April 15, 2010
Monday, October 27, 2008
Software Licensing and Tough Economies
Is your company tightening its pursestrings? Have you been told to hold off on all "unnecessary purchases" for a couple of quarters? Did your 2009 budget just go through rather drastic cuts? Have layoffs occurred or are they looming?
If you answered yes to any of the above, you're not alone. For any of us who came through the "Dot Bust" of the early 2000's (particularly in Northern California), we may remember these signs well. I remember heading into it (as a not yet 2 year old consulting business) and the phases that it went through. However; I also have worked with many businesses since and have seen the outcome of decisions they made to "save costs" that had long term negative impact.
Here are some things to think about:
1) You can't manage what you don't know. Software costs are one of the line items you're going to be watching closely - make sure you have the tools in place to tell you exactly what is being used and what you own. Then you can continue to provide your business users with the tools they need to do their job but ensure that you're not over-purchasing in this category.
2) Servers and client access licenses - get expert advice. This is consistently the area where I see costly mistakes being made, typically on the basis of relying on the knowledge of someone who doesn't keep current with publisher's product use rights. A recent half day consultation with us saved one of our clients $30,000 in server licensing costs. This is an area where it doesn't cost much to get advice that can save you a bundle!
3) Review your maintenance agreements and renewal contracts - in the past several "lush" years we've seen many clients opting for convenience over cost savings. Now that things are leaner, you might need to re-think some of your past decisions to ensure they are meeting your current goals.
4) Evaluate your reseller. Just like #3 above, are the "value added services" provided by your reseller justifying their markup on your software? This is another area where that client we mentioned in #2 received significant benefit from that consultation. They needed to change resellers and leveraged us to make the change - it resulted in $15,000 in free consulting services from us as a "thank you" from their new reseller...that's paying for them to have us manage their software license situation monthly for the next year!
5) If you're downsizing and having to "do more with less", we can ensure you still have the information you need on a monthly basis to get full value of your software assets...for a fraction of the cost of doing it internally - call or e-mail me and free up some of your staffs limited time.
These are just some suggestions, the important thing to remember is this...in times of financial hardship it is our responsibility to ensure our decisions help our companies (a) survive the downturn, and (b) are positioned to prosper immediately in the upturn.
If you answered yes to any of the above, you're not alone. For any of us who came through the "Dot Bust" of the early 2000's (particularly in Northern California), we may remember these signs well. I remember heading into it (as a not yet 2 year old consulting business) and the phases that it went through. However; I also have worked with many businesses since and have seen the outcome of decisions they made to "save costs" that had long term negative impact.
Here are some things to think about:
1) You can't manage what you don't know. Software costs are one of the line items you're going to be watching closely - make sure you have the tools in place to tell you exactly what is being used and what you own. Then you can continue to provide your business users with the tools they need to do their job but ensure that you're not over-purchasing in this category.
2) Servers and client access licenses - get expert advice. This is consistently the area where I see costly mistakes being made, typically on the basis of relying on the knowledge of someone who doesn't keep current with publisher's product use rights. A recent half day consultation with us saved one of our clients $30,000 in server licensing costs. This is an area where it doesn't cost much to get advice that can save you a bundle!
3) Review your maintenance agreements and renewal contracts - in the past several "lush" years we've seen many clients opting for convenience over cost savings. Now that things are leaner, you might need to re-think some of your past decisions to ensure they are meeting your current goals.
4) Evaluate your reseller. Just like #3 above, are the "value added services" provided by your reseller justifying their markup on your software? This is another area where that client we mentioned in #2 received significant benefit from that consultation. They needed to change resellers and leveraged us to make the change - it resulted in $15,000 in free consulting services from us as a "thank you" from their new reseller...that's paying for them to have us manage their software license situation monthly for the next year!
5) If you're downsizing and having to "do more with less", we can ensure you still have the information you need on a monthly basis to get full value of your software assets...for a fraction of the cost of doing it internally - call or e-mail me and free up some of your staffs limited time.
These are just some suggestions, the important thing to remember is this...in times of financial hardship it is our responsibility to ensure our decisions help our companies (a) survive the downturn, and (b) are positioned to prosper immediately in the upturn.
Tuesday, April 29, 2008
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?
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?
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