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Benefits Of Enterprise License Agreement

Once we have committed to licensing, it is very difficult to remove software that we no longer use or use. These programs are usually blocked in linked discounts in one way; larger quantities or more products. If we want to reduce quantities or eliminate a product, we risk losing our rebate or, at the very least, having to wait for the current contract to expire. Since these contracts are generally negotiated at a very high level of management, it is very common for certain requirements for departments and business units to be not fully met in the agreement. This leaves us with the situation where we hold a large number of licences, but some groups are still forced to leave on their own and negotiate ancillary agreements to meet specific trade requirements. Finally, while the discounts are impressive on the face of the agreement, there are often requirements for products or services that we don`t have a requirement for. It is rather unusual for unlimited user fees that allow unlimited product supply. Most unlimited licensing agreements contain a clear list of products to use, terms of use and availability limits. A well-meaning end user could be of unlimited interpretation in simpler terms, so it is important to do so clearly with customers.

What we really need to do is find ways to avoid agreements that go well beyond the need for a licence — avoid having potential licensing costs and years of maintenance before you have the opportunity to take advantage of those assets. SAM can help us understand what our organization is actually using, which makes annualized true-up much easier, but it also provides a valuable source of data that we can break down over time and use for other purposes outside of our traditional SAM processes. There are certainly many obvious advantages to the corporate licensing agreement. However, it is important to ask why the publisher`s salespeople are so eager to get us to sign new contracts that include more and more of our software succession. We need to think carefully about what`s there for them, the publisher`s salesman and the software publishers. There is another aspect of these agreements that present unique challenges for those of us who are tasked with effectively managing the company`s resources. Nevertheless, many executives within IT organizations have doubts about whether they will ever use the software features made available to them by these agreements. They doubt that the so-called value of the ELA will be fully realized when faced with real challenges, such as lack of skills or lack of resources to test and introduce new technologies – or even a new version of an existing technology. When establishing a business licensing agreement, certain pitfalls should be avoided.

8 April 2021 Uncategorized


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