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Software License
Learning Outcomes
Describe types of licence agreements used in software Explain of the ownership and implication of the types licenses that may be applicable Describe negotiation strategy and tactics Describe the features of a contract in IT
Software License
Master agreement
Explains the conditions of sale. the cost of acquiring the licensing agreement, the software being licensed who can use the software, what purposes the software can be used the conditions of the maintenance contract and tech support services how the software can be installed and accessed by users.
CE00303-3 Critical issues in Managing MIS in Organization Software License
Software product
Implicit conditions of use and performance capabilities. expectation that the software can perform under every circumstance and condition should not be a certainty. cannot guaranty that their software can work with all other software applications on a computer system.
For example, run two virus protection applications such as Symantecs Norton AntiVirus and Network Associates
Software License
Software License
Software License
1. Ownership
Non exclusive License
means that the user is allowed to use under terms of license but no restrictions on the Licensor as to his/hers own activities
Software License
2. Performance Requirements scenario~ could be broad based examples includes SLA, outsourcing, Customer Support
ideally clear unequivocal commitment
specification, delivery dates
Software License
2. Performance Requirements
strongly advise to avoid these clauses
best efforts or reasonable effort
Software License
3. Acceptance Testing
Scenario
could be a major deal off the shelf software or customized software
immaterial to the scope & size its important to the client who will be paying for the system and would be responsible if the system failed
payment conditions
on delivery, within 30days of delivery or when client is satisfied?
Software License
3. Acceptance Testing
compromise on delivery payment and specify performance criteria
objective standard ~ objective criteria ?
output ~ e.g. quality and/or speed time or speed e.g. response time, see example accuracy e.g. OCR scanner
Software License
3. Acceptance Testing
example of software performance criteria
selection of menu option / icon to display screen
- 100% within 5 seconds
Software License
5. Pricing
Pricing can be complex
tiered
site, increments e.g.Novell ~ licence NetWare 4.1 will allow user to match licence with smaller increments ~ which is not the norm
metering the use of software as you use run you pay e.g. Gas Technology site Licences concurrent licences~e.commerce enterprise agreements usually allow company to run a piece of software ~ 3 years with options to upgrade to latest version
CE00303-3 Critical issues in Managing MIS in Organization Software License
5. Pricing
NT price guide
5 user licence - $809 10 user licence -$1129 25 user licence - $2800 additional single client - 39.95 additional 20 clients - $659
source Microsoft
Lotus has simplified its licensing model and integration with Microsoft technology
six broad pricing buckets with extensive discounts for enterprise users
Gartner Group comments look more like Microsoft Backoffice & Enterprise licensing
source Computer Weekly Jan 2000
CE00303-3 Critical issues in Managing MIS in Organization Software License
6. Stiffing
practise of software suppliers squeezing extra cash from exploiting weakness in contracts usually occurs with a change in customer circumstances problems
typically problems arise when users make business changes which put them outside strict interpretation of their software license for example: acquiring or selling business, restructuring, outsourcing or upgrading hardware etc
Software License
users training
training provision
free, costs, recurring costs etc
maintenance agreements
what are the costs & duration
procedure for price increase
Software License
Q&A
Source: Staffordshire University
CE00303-3 Critical issues in Managing MIS in Organization Software License