It is no longer a surprise that this 2013, there will be huge changes in software licensing policies. Most enterprises just accept this fact, knowing that they can't do anything about it. Well, the changes will happen but companies can do something to avoid overspending. It's called the midterm health check. It's time you know why you need it.
Midterm Health Check Benefits
Let's go back to the moneymaking changes these IT vendors did. They implemented changes with the software licensing contracts; that enterprises should pay for the extra licenses for every user, device or third-party application that will access the software. And with people going mobile today, companies will have to pay a lot more licenses for that.
The reality is, many enterprises today are under contract with software vendors. With these changes implemented, they have to purchase the extra licenses to be able to use the important software. But wait for a minute, perform a midterm health check first before spending money.
The short-term benefits include discovering ways that you can reduce on some licenses as well as support costs. Can you restructure your contract agreement halfway? Yes, you can because this reflects your changing needs of the business.
For the long-term, you will have a good idea of what your enterprise needs and this will help make better IT decisions in the future. Further, you'll be able to manage software investments and vendors better.
Things to Evaluate
The midterm health check is done to evaluate your current software licenses and usage. Through this, you can decide if you want to stay with your current vendor or find other options. Here's what you should focus on when doing the midterm health check:
* License Rights and Costs- During the midterm health check, you must evaluate the licensing rights you have now and those the vendor has changed. Also, check if you have licenses you don't need and if the licensing costs are at par with the fair market value prices.
* Alternatives- The midterm health check results will present you with the opportunity to come up with an alternative, whether you want to stick with your current software or find options. But more often, enterprises choose to give up these licensing agreements to find cost-friendlier options.
* Prices- Has the licensing costs change without you knowing? Your vendor may be charging you too much and you don't even know about it.
* Taking the Risk- Are you willing to take the risk with your current software vendor? Is your business needs aligned with the vendor's strategy? The midterm health check will show you if your vendor is actually moving towards a more revenue-generating direction.
Enterprises must perform a midterm health check especially with all the changes in the IT world right now. It's one thing to overspend and it's another to feel mandated to pay for the licenses you don't really need.
Midterm Health Check Benefits
Let's go back to the moneymaking changes these IT vendors did. They implemented changes with the software licensing contracts; that enterprises should pay for the extra licenses for every user, device or third-party application that will access the software. And with people going mobile today, companies will have to pay a lot more licenses for that.
The reality is, many enterprises today are under contract with software vendors. With these changes implemented, they have to purchase the extra licenses to be able to use the important software. But wait for a minute, perform a midterm health check first before spending money.
The short-term benefits include discovering ways that you can reduce on some licenses as well as support costs. Can you restructure your contract agreement halfway? Yes, you can because this reflects your changing needs of the business.
For the long-term, you will have a good idea of what your enterprise needs and this will help make better IT decisions in the future. Further, you'll be able to manage software investments and vendors better.
Things to Evaluate
The midterm health check is done to evaluate your current software licenses and usage. Through this, you can decide if you want to stay with your current vendor or find other options. Here's what you should focus on when doing the midterm health check:
* License Rights and Costs- During the midterm health check, you must evaluate the licensing rights you have now and those the vendor has changed. Also, check if you have licenses you don't need and if the licensing costs are at par with the fair market value prices.
* Alternatives- The midterm health check results will present you with the opportunity to come up with an alternative, whether you want to stick with your current software or find options. But more often, enterprises choose to give up these licensing agreements to find cost-friendlier options.
* Prices- Has the licensing costs change without you knowing? Your vendor may be charging you too much and you don't even know about it.
* Taking the Risk- Are you willing to take the risk with your current software vendor? Is your business needs aligned with the vendor's strategy? The midterm health check will show you if your vendor is actually moving towards a more revenue-generating direction.
Enterprises must perform a midterm health check especially with all the changes in the IT world right now. It's one thing to overspend and it's another to feel mandated to pay for the licenses you don't really need.
About the Author:
Joseph B. Kappernick specializes in helping Fortune 500 companies save money. He recommends that you visit NPI to learn more about IT cost reduction consulting solution consulting
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