Improvements in an organization's approach to software licensing options on acquisition and on renewal can lead to cost savings with minimal downside. This note addresses several key considerations for better negotiation and renewal of license agreements:
- Understanding organizational responsibility to pay for software.
- Understanding the drivers of cost and how to avoid overpayment.
- Determining whether software maintenance is necessary and how to obtain it at a lower cost.
- Identifying ways to push back against standard vendor positions on pricing and maintenance and reduce lifetime costs.
Organizations can reduce software costs by actively reviewing and modifying the software agreements proposed by their suppliers.