There was an interesting thread on IAITAM’s ‘IT Asset Management – Global’ LinkedIn Group a couple of months back.
“I’m interested to hear others views on ensuring you retain control of licensing agreements from vendors.”
(I would share the direct link to the conversation but it is not an open group – Group profile here).
Bill Felice, a Software Program Manager at SunGard Availability Services, kindly put his head above the parapet and stated:
“…To ensure consistency, I’ve created a software contract checklist which I’d be happy to share. Important clauses/T’s & C’s such as license grant, license model and metric, support clauses, audit, data retrieval and retention (if applicable), etc. I’ve developed a standard addendum to a Publisher’s SLA as a means of ensuring our concerns were presented and addressed.”
Bill has very kindly shared his checklist below, I’ve put the full document in Microsoft Word format in the free downloads section. Sign up to our free newsletter to gain access, existing subscribers – check out the right hand column of the newsletter.
Atul Gawande, author of the brilliant ‘Checklist Manifesto’ which explores the power of checklists. “Man is fallible, but maybe men are less so.”
Software Contract Requirements Checklist
Product
If Perpetual License – right to use unless breach, etc.
If term license, support and upgrades included.
License type(s) (i.e., concurrent, named, etc)
License Definitions, Definitions for key items
Affiliates usage permitted
Ability to make Backup, DR, TEST, DEV copies of Software at no charge.
Pricing guarantees for incremental purchases
Price increase caps on additional licenses
Electronic delivery of software
Software warranty – time frame, & language including free from time bombs ,etc.
Acceptance testing
Existing License Trade-In
Inability to change license model w/o approval
Training prices if applicable
Consulting/Prof Services prices if applicable
No “then current” or “then in effect” language
No automatic renewals
Manuals included for all purchases/upgrades
License compliance guaranteed only if software delivered to designated group/dept.
Installation included with SW price
Language re: future product evaluation
Maintenance and Support
Operating Systems Upgrade guarantee
Escalation procedures
Severity levels, service level response times
Maintenance %, based on purchase price
Caps on maintenance increases (3% or CPI)
Specific Support Hours
Support on discontinued product
Separate Billing of Maintenance and support
Discount on pre-paid maintenance
Penalties for missed P1 calls/SLA’s
Terms and Conditions
Use of name clause
Payments due net 30 from receipt of invoice
Protection against assignment of product
Audit rights – 30 days, 15 business days
Thanks very much to Bill for sharing his checklist. Has he missed anything here?
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