This IDC Tech Buyer Presentation provides a procurement checklist for addressing on-premises software negotiation challenges. On-premises software has been licensed by publishers for many decades. Over time, the complexity of these on-premises software solutions has grown tremendously. Similarly, so have the terms under which the software is licensed. As a result, most enterprises' technology, sourcing, procurement, and finance organizations are challenged with managing software negotiations, deployment, consumption, compliance, and financial forecasting. Best practices from leading enterprises include the following takeaways:
- Successful vendor/client relationships start with a solid contractual foundation that is fair to both parties.
- The complexity of on-premises software license terms and contractual frameworks introduces significant risks and financial uncertainty.
- A common framework/playbook is critical to mitigate such risk and financial uncertainty.
According to Aaron Polikaitis, vice president of research, Vendor Sourcing and Management, "To succeed, enterprises must establish and adopt a software negotiation playbook that is widely adopted by enterprise procurement professionals, educate internal business partners and establish wide support for the playbook strategy, and leverage playbook elements as part of all RFPs, negotiations, and renewals."