Ok, so you’ve done the hard work and feel like you found a software system that meets your needs. Now comes the dreaded step of reviewing pricing and signing the contract agreement. Do you feel comfortable with the jargon? What is this line, and why is it so much? Are these all fixed costs, or are some of these costs recurring? What does “licensing” really mean? These are all good questions, and ones that you may not feel comfortable with. After all, you buy a software system for your business only every few years. It’s ok. Take a deep breath and consider the following tips by Software Advice, an online software search service based in Austin, TX.
My Additional Comments:
1) if including “add-ons” in your purchase, be sure to understand who is responsible for supporting the product. Also, verify that the add-on vendor is “licensed” with the main product vendor so that when new versions are released the add-on vendor has time to confirm compatibility with the changes.
2) Maintenance – many buyers don’t realize that some software companies allow for reduced pricing is multi-year contracts are purchased in advance. If, as a buyer, you can swing this in the budget than you may save some $ here.
3) Support – if buying through an authorized VAR (value added reseller) then check to see if they too offer support services. This may cost extra, so consider this in your budget, but if they are local and responsive then you may want to go this route since they setup your database and know you personally.
4) Concurrent login – lots of questions needed here. I know some products that count each login per module against the user license count; even if it’s the same user!
If you chose to do your own software search, and you’ve made it this far but identify with the concerns I illustrated above, then reach out to me for assistance. Otherwise, take your time and ask lots of questions before signing any contract agreement. Also, to the extent possible, make sure the contract references the things you feel are important, because you never know when issues will arise and you may need to rely on this agreement to protect your investment.
As always, let me know what you’ve come across in the contracts that you’ve had to negotiate, and how what you asked before agreeing to move forward. Thanks!
Image credit: © Bruce Shippee – Fotolia.com
About Keith German