How Beneficial Can Midterm Health Checks Be For Your Enterprise -


How Beneficial Can Midterm Health Checks Be For Your Enterprise

By Joseph B. Kappernick

IT software vendors are planning to make it big this 2013. Most of the big names have implemented strategies for making more money through licenses. Enterprises feel helpless. They need the software so they are willing to pay for what's needed. But, there is something that can still be done and that's through doing a midterm health check.

The Advantages

Software vendors are itching to make more revenue starting 2013 through charging their clients with extra licenses. Trying to take advantage of mobile technology and BYOD, it seems like enterprises have no choice but to cave in. They are expected to pay additional licenses for every user and device that accesses the software, even third-party applications accessed too.

The reality is, many enterprises today are under contract with software vendors. With these changes implemented, they have to purchase the extra licenses to be able to use the important software. But wait for a minute, perform a midterm health check first before spending money.

A major benefit of performing the midterm health check is to reduce the licensing costs you are paying or will be paying for. If you discover that you're overspending, you can talk to your vendor and restructure the contract agreement.

The long-term benefits include having the ability to manage software investments as a resource for value and productivity. You can also align your IT strategy with your vendor offerings.

What to Look Out For

When performing the midterm health check, you should know the important things to evaluate. Here's a checklist that you can focus on to identify licensing issues as well as discover money-saving opportunities:

* Licensing- Do you need the licenses you have now? Are the licenses costing you more than it should? Compare your software needs and usage to the licenses you're paying. If you're paying too much, then negotiate a new agreement with the vendor.

* Alternate Options- You don't have to be stuck with your current software, you have options. The midterm health check will tell you if you need to start looking for other options especially if the licensing agreements aren't very consumer-friendly.

* Market Value Prices- You should be paying for licenses at the right price. The midterm health check compares what you're paying for with the current market value. If you're being charged more, it's time to find another vendor.

* Risks- The midterm health check can give you an oversight on aligning your business needs to the vendor's strategy. If you see that the company is leaning towards increasing licensing requirements, it's time to consider other options.

Enterprises must perform a midterm health check especially with all the changes in the IT world right now. It's one thing to overspend and it's another to feel mandated to pay for the licenses you don't really need.

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