NETWORK WORLD NEWSLETTER: AMY SCHURR ON IT LEADERSHIP
11/11/04
Today's focus:  Software licensing negotiations

Dear [EMAIL PROTECTED],

In this issue:

* Tips for negotiating software contracts
* Links related to IT Leadership
* Featured reader resource
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IT professionals today don't indulge in the latest-greatest 
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Today's focus:  Software licensing negotiations

By Amy Schurr

In the last newsletter, we looked at tips for negotiating better 
telecom deals. In this installment, we'll focus on another 
expensive aspect of IT spending: software licensing.

Nancy Markle, president of the Society of Information Management 
(SIM) IT professional association, shares her thoughts on 
contract negotiation in a Network World article ( 
<http://www.nwfusion.com/careers/2004/0510man.html> ). She 
recommends appointing a skilled chief negotiator and 
establishing processes and procedures for all IT purchases that 
exceed a certain dollar amount. Her other tips include building 
flexibility and scalability into a contract and speaking to many 
people involved with an implementation at a particular company 
rather than just the one person there who agreed to serve as the 
vendor's customer reference.

In order to negotiate an effective deal, you need to know the 
lingo. Linda Musthaler outlines the pros and cons of perpetual, 
subscription-based and utility-based licensing arrangements. Go 
to 
<http://www.nwfusion.com/columnists/2004/072604musthaler.html> 
for her overview.

You may need to get the lawyers involved to review the contract 
language and make sure your corporate interests are protected. 
IT malpractice is on the rise (see 
<http://www.nwfusion.com/careers/2002/0408man.html> ) as 
consultants and vendors fail to deliver what they promised. It's 
also smart to ask for source code escrow in case your vendor 
goes belly up.

Legal types offer a variety of tips for software licensing 
contracts at the following sites:

* Negotiating software license agreements in an economic 
��downturn 
  http://www.eletra.com/ggalert/e_article000080805.cfm> 

* Negotiating the software license: Eight tips for the licensee 
  http://www.nwfusion.com/nlitlead824> 

* Negotiating software contracts 
  http://www.smthacker.co.uk/negotiating_software_contracts.htm> 

* Ten tips for negotiating software license agreements 
  http://www.wnjip.com/E_Commerce_Spring_2002.html#Ten_Tips> 

Finally, don't forget that maintenance poses another big cost 
component. Get tips on negotiating software maintenance 
agreements for updates and revisions at 
<http://www.nwfusion.com/careers/2002/0218man.html>
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To contact: Amy Schurr

Amy Schurr is an editor for Network World's Management 
Strategies and Features sections. If you have any career topics 
you'd like her to cover or want to comment on this newsletter, 
you can reach her at <mailto:[EMAIL PROTECTED]>.
_______________________________________________________________
This newsletter is sponsored by Cisco Systems 
Special Report:  Bridging the Gap; Enterprise ROI 

IT professionals today don't indulge in the latest-greatest 
technology for their own sake; instead they concentrate efforts 
on projects that are most likely to help achieve business goals. 
Read about the challenges and opportunities when IT starts 
'bridging the gap' and directly contributes to enterprise ROI. 
http://www.fattail.com/redir/redirect.asp?CID=87951
_______________________________________________________________
ARCHIVE LINKS

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