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Driving cost savings with packaged software vendors

Well, we’re not exactly seeing agressive price drops, but we are looking for ways to either cut or control growth of software costs. Some specifics:

  • Understand how the software is licensed.
    1. Concurrent Users? Actively monitor the number of users during peak times. Make sure you are paying maintenance only on the number of users that really attach – not the number of named users.
    2. Processor count or power? Watch out for server upgrades – you may get stuck with an increase. Validate with the vendor if you can use something like WSRM to limit the application to a single processor, thus staying within the spirit of your agreement.
    3. Named users? Get in the habit of auditing your user file – it’s rare that the HR processes for employees leaving the company are in sync with every user list in the company.
  • Suspend or stop maintenance payments
    1. Suspend, meaning stop paying maintenance this year for some of all of your licenses, and pick it up again next year. Read your license agreement carefully hoever, some vendors specifically prohibit this without paying back maintenance.
    2. Just say no, and stop paying maintenance. Most software is purchased once, and the annual $$ are all maintenance payments. Heck, if you’ve heavily modified the software and never intend to upgrade, and never call the support line – just stop!

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