Searching for cloud or software vendors can prove to be a lot more difficult than you initially estimated. There are a plenty of vendors who can provide you with business software. This makes negotiating software license agreements even harder.
How do you choose the best one?
We believe this list of questions can help you choose the right vendor and get the right software license agreement.
-
What happens if there’s a disagreement over roles and responsibilities?
You should ask your potential vendor about what is their process for dispute resolution and what is their track record when it comes to litigation and customers. You must also ask if any customers have sued the vendor and how were they settled if the disputes ended up in court.
- What will be the pricing if my company wants to purchase optional modules and additional licenses in the future?
Ask if they set the pricing for any future purchases in the current agreement. This way, you protect your investment in the long run.
- Will there be any modules to purchase in the future?
When negotiating software license agreements, assume that the product will evolve and that your needs may change. Make provisions for the future.
- Will we be able to set up independent service desks/databases within our company for different functional areas or departments?
For instance, will the marketing team be able to have their own private database in your application and will there be any additional charges for this feature?
- As my company grows, what license options do I have?
In future, you may want to have people use the application on a part-time basis from different geographical locations. Can you share your licenses? What options do you have?
- Have you got any customer studies that discuss how you have helped them achieve their results?
Can you talk to the customers yourself to have their opinion about the services?
- How will you deal with and implement my company’s evolving feature requirements after I hire you as my vendor?
Will you consider our feedback in your development phase? Can we make product changes and will there be any charges for their implementation?
-
Will I have an account manager to deal with from your side?
- Can I to enjoy a 30-day trial period of your product without obligation?
- How often will you provide new features and enhancement releases? Will it be on a monthly or a yearly basis?
Are there any new features and enhancements included in the annual software maintenance fee?
- What if my company is not satisfied with the final product after we have paid for software licenses?
What if the product does not function as it was demonstrated, what will you do?
- After we purchase your software licenses, what if a better technology comes that suits our needs?
- How quickly will we be able to install and run your product?
Does it take a day or two, a week, a month or more than that to deploy? Who will pay for the initial setup, customization and configuration costs? Do we need to learn a programming language to implement any changes or to administer your product? Will you provide a written implementation plan?
When negotiating software license agreements, it is important not be blinded by a great deal. If it seems too good to be true, it probably is. Hidden clauses and future expenses may end up costing you 100 times in the long run.