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Isn't it time someone got fired for renewing your company's software maintenance agreement?

Sounds drastic, but it actually makes good business sense. Here's why.


· Software licencing,Software maintenance

CIOs are acutely aware that the software budget typically consumes 22% of their IT spend - or about $20,000 per support query. That's huge, right. But there are alternatives to software maintenance agreements, and exploring them could save your organisation big dollars.

"If you’re not tied to a particular vendor you can negotiate better value, choice and service." - Tom Bendistinto, Executive Director, TACT

The current trend of shifting into the cloud means many software companies are no longer investing in on-premise upgrades and are instead putting their money and resources into cloud services.

What does this mean for your business?

Quite a lot, as it turns out. In cloud environments, the necessity for a software maintenance licence is effectively rolled into the purchase price, so you no longer need to wait years to upgrade to a new version of a system while getting limited value from vendor support.

Globally, IT vendors were slow to the game to provide cloud support and are still not keeping pace with third party offerings. So, why sponsor them through software assurance to simply follow a brand, or because that's what you've always done? 

Look for leading edge providers and acknowledge you don’t need to stay with your current vendor. Why? Because if you’re not tied to a particular vendor you can negotiate better value, choice and service. 

And this can have a dramatic effect on your bottom line. 

Take charge and seek independent advice – don’t let a software vendor tell you what’s happening in the market place while paying them for software support you don't need.

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