Contracts Contracts Contracts

An anonymous reader submits: "There's an article over at CNet about all those software contracts that are out there, and what to watch for before signing the dotted line. Using California's $95 million Oracle problem, they define what the general terms are that get used in software procurement and support contracts. While mostly geared at commercial software, one can use most of this article to target open source tech support contracts."

Comments

Contract Analysis

[Bullseye_blam]

Well, this is interesting.

I was hired this summer by a large corporation (4,000+ employees and will otherwise go nameless) to do software cost analysis on their mainframe software. They hired me precisely for this reason: to analyze each contract and summarize their software license/maintenance costs for the current year and into the future.

Thankfully, my company has been in business since the 1960's and are pros when it comes to language in the contracts. I mostly do work with mainframes, and I've found a few keys to look for:

1. Hardware upgrades - Many companies will charge additional license fees for upgrades to mainframe CPU's (often in MIPS or MSU ratings)
2. Maintenance - It is important to put some kind of "cap" on maintenance. A typical example: "maintenance shall not exceed the lesser of 15% of current license fee or 10% over the previous year." Also, it must be assumed that fees *WILL* increase the maxiumum allowable charge under the contract.
3. Usage - In a large corporate setting, companies often must pay for the use of software on multiple sites or for use of partially owned, divested, or acquired entities.

As you can see, the charges mount quickly. That's why it's essential only to run the software necessary, and nothing more.

-Bullseye