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Long-Term Support, Operational Costs Key Factors for Software Licensing Evaluations

October 11, 2011

In a survey performed by InformationWeek Reports, nearly 55 percent of survey respondents identified long-term support and other operational costs as the most important factors for evaluating software licensing solutions.

The survey report said that from “ridiculously” complex end user software licensing agreements to a propensity for frivolous litigation, gripes about the way vendors license their software were rampant among survey respondents.

Respondents were asked about everything from whether line-of-business executives are involved in evaluating licenses – more than you might expect – to their opinion on whether government intervention is needed to regulate licensing practices.

More than half of the respondents, 54 percent, don't want the feds involved. However, this doesn't mean IT is happy with the way software vendors do business, according to the report.

Around 54 percent do not charge back or cost-allocate for licensed software, while less nearly 39 percent of respondents said that it’s never or almost never OK to accept a software licensing agreement where terms can change at the provider's discretion. Moreover, eight percent typically negotiate discount levels of more than 35 percent.

The research report “Software Licensing: Time for CIOs to Take the Wheel” includes the findings of the survey. The report encompasses analysis of results from InformationWeek's recent Software Licensing Survey and guides readers in managing licensing contracts and relationships.

More than 500 business technology professionals responded to this poll. The report author, Jonathan Feldman, serves as director of information technology services for a city in North Carolina.

The InformationWeek Business Technology Network provides IT executives with unique analysis and tools that parallel their work flow – from defining and framing objectives through to the evaluation and recommendation of solutions.

Anshu Shrivastava is a contributing editor for TMCnet. To read more of Anshu’s articles, please visit her columnist page.

Edited by Carrie Schmelkin
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