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?
Thursday, April 15, 2010
Wednesday, March 10, 2010
Resellers and Publishers in the world of Software License Management
I woke up this morning to a great Twitter from a good friend and great coach Jak Plihal (http://www.beingsolutions.com/). It was the quote:
"It is hard to get a man to understand something, if his living depends on him not understanding it." by Upton Sinclair.
To me, this perfectly explains the relationship between resellers (VARs, LARs, and any other acronym that is responsible for selling you software), software publishers and the details of software licensing.
There are details in software licensing agreements and product use rights that can be turned to a benefit for a company in legally reducing their software licensing costs...but you're not going to find them all out by asking your reseller or publisher for help.
Why? Not because they are necessarily trying to mislead you or keep you in ignorance - instead it's because they honestly don't even think of those options...because their living (or magnitude of it) depends on them not thinking of those options.
Now, there are definitely some that are better than others (I love working with Softmart for example as their reps have demonstrated to me a strong ability to keep the customer's needs in focus) but as long as their income relies upon what you buy then Upton Sinclair's quote will continue to apply.
When it comes to negotiating the best deal for licensing - the bulk of the savings opportunities comes from making full use of the product use rights and volume licensing agreements terms - not from the discount you negotiate (or not from the discount you negotiate without knowing these items intimately). Get your advice and education from an independent expert...know in advance who profits from your purchase and what their motivation is so you can better analyze their advice.
Remember, "It is hard to get a man to understand something, if his living depends on him not understanding it." Upton Sinclair.
Thanks Jak!
"It is hard to get a man to understand something, if his living depends on him not understanding it." by Upton Sinclair.
To me, this perfectly explains the relationship between resellers (VARs, LARs, and any other acronym that is responsible for selling you software), software publishers and the details of software licensing.
There are details in software licensing agreements and product use rights that can be turned to a benefit for a company in legally reducing their software licensing costs...but you're not going to find them all out by asking your reseller or publisher for help.
Why? Not because they are necessarily trying to mislead you or keep you in ignorance - instead it's because they honestly don't even think of those options...because their living (or magnitude of it) depends on them not thinking of those options.
Now, there are definitely some that are better than others (I love working with Softmart for example as their reps have demonstrated to me a strong ability to keep the customer's needs in focus) but as long as their income relies upon what you buy then Upton Sinclair's quote will continue to apply.
When it comes to negotiating the best deal for licensing - the bulk of the savings opportunities comes from making full use of the product use rights and volume licensing agreements terms - not from the discount you negotiate (or not from the discount you negotiate without knowing these items intimately). Get your advice and education from an independent expert...know in advance who profits from your purchase and what their motivation is so you can better analyze their advice.
Remember, "It is hard to get a man to understand something, if his living depends on him not understanding it." Upton Sinclair.
Thanks Jak!
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