One of the most complicated aspects of negotiating a software licensing contract is when an organization has no precedent to follow. Perhaps they are purchasing volume licensing for the first time, or working with a new vendor, but when there is nothing to go by, the process is all that more complicated. To add to this, vendors have non-disclosure agreements, preventing customers from discussing pricing with others. Therefore, you won’t find out about pricing until you are actually seated at […]
Tag: software licensing
Analyst: Microsoft licensing still difficult
With October a day or two away, and the launch of Windows 7 nears, Microsoft’s licensing hasn’t gotten any clearer. Two analysts at Directions on Microsoft, an analyst firm that reports on the company, has released a report that breaks down five reasons why Microsoft licensing is supposedly difficult: 1. Many products and markets. Microsoft offers a broader set of products than any other software vendor, sells in virtually every country, and deals with customers of all sizes. A one-size-fits-all […]
When to change to an Oracle Enterprise Site license
We often get asked by clients, when is a good time to go to an Enterprise Site License versus staying with Server or CPU licenses with Oracle? This answer is complex, as each business is different, but we suggest upgrading to the Enterprise Site License only when you can predict that your licensing needs are going to significantly change in the near term. Otherwise, stick with what you have. In most scenarios when licensing needs are going to require double […]
Two more victims of the BSA
We have been giving many examples of companies that had to shell out to vendors after being audited and caught by the BSA. Most of them have been overseas so it didn’t hit as close to home as these next two examples will: Mueller Services, Inc., of Tonawanda, NY paid $62,270 to settle claims that it had unlicensed copies of Adobe and Microsoft software installed on its computers. The tip came in through the BSA’s reporting website anonymously. Bankers Warranty […]
What do I do with unused licenses?
Many organizations purchase licensing for planning and development that don’t actually get used and were not needed in the first place. The question is, can they go back to the vendor and “return” them? The short answer is yes; the long answer however, is much more complicated. Going back to a vendor and requesting a credit for unused licenses isn’t out of the question, but most vendors will then push to re-negotiate their contract, which could lead to unforeseen costs, […]
See, even the government is doing it!
The Department of Homeland Security (DHS) has just revealed that as part of their efficiency review, they were able to save $89 million in software licensing fees by renegotiating contracts with Microsoft and Oracle. $89 million that can be used elsewhere. Their IT budget in 2009 was $6.2 billion. How did they do it? According to InformationWeek “The agency consolidated 487,000 licenses into a blanket software-and-maintenance agreement with Microsoft at a savings (or “cost avoidance”) of $87.5 million over the […]
Even resellers are at risk
We talk all the time on here about individual companies being targeted by software vendors for piracy and non-compliance with licensing policies. It doesn’t stop there. Recently, Microsoft got settlements from 11 resellers in the UK for selling illegal software and not installing the software properly. Each of the 11 firms have reached settlements with Microsoft and will now work with the company to insure legal practices are being carried out. Ouch. According to an article from ChannelWeb UK, these […]
Understanding Oracle licensing with virtualization and non-Oracle servers
We get a lot of questions about Oracle licensing of non-Oracle virtualization servers. In order to understand the licensing model, you must understand that Oracle only acknowledges its own virtualization software and only in standalone servers. This is an extremely important point to internalize, especially if you’re using non-Oracle virtualization software (with VMware being one of the most popular). End users with non-Oracle virtualization software must license based on the physical size of the server. So, if you’re running a […]
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