A Software Contract Renewal explained

One of the greatest IT challenges your organization faces is managing your software.

Do you have enough software licenses for all your employees? Do they have the right versions and access to the features they need? Read on to learn what you need to know to manage software renewals like a pro.

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Pre-renewal checklist

Before you renew your software licenses, consider these items:

  1. Quantity. How many people are using the software, and do you have the right number of licenses? The right number is enough for all the employees who need one, but not more than is being used.
  2. Users’ preferences. Companies often make the mistake of licensing software without asking the end users what they really need. Talk to the people who’ve been using the software. Do they need more or different features? Would they rather use a competitor’s software package?
  3. Version. Are you happy with the features in the version you are using? If you need more functionality (or better integration with other products), consider a newer version of the software. But only upgrade as needed – no need to change something that works!
  4. Support. Are you paying for a support contract? If so, are your employees using it? Make sure they’re aware of available support options (like training or help desks) and stop paying for options your company doesn’t need.
  5. Choice of software. We all know the big software brands, but sometimes a lesser-known competitor has the features you need for a lower price. Look beyond the obvious and consider your options.
  6. Purchase method. Do you own the licenses outright or are you paying for monthly subscriptions? Many software companies have been moving toward a subscription model, which may allow you to add or remove licenses more easily. But if you know you’ll need a certain number of licenses long-term, are there options to buy the software outright and reduce monthly costs?
  7. Contract. Reading software contracts is no one’s idea of fun, but doing so can give you crucial information. Are you locked into several licenses, a particular price, or unnecessary service? Read new contracts (including renewal contracts) thoroughly so you know what you’re agreeing to.

Software renewal options

Now that you know what you have and what you need, you’re ready to make decisions about software renewal. Here are your options:

  1. End the contract. If you’re not using a software package or see a better option, decline to renew at the end of the contract period.
  2. Renew your existing agreement. If you’re happy with the status quo, you can simply renew your existing agreement. But make sure to read the fine print! And only renew if you’re certain the software and terms are right for your company.
  3. Negotiate a new software contract. If you want to keep using the software but want upgrades, different service terms, or more or fewer licenses, you can negotiate a new software contract. It’s more expensive for a company to attract a new customer than keep an existing one, so you may have more leverage than you think.

What can Blackbelt XP do for you?

With Data Analytics & Recovery Recommendations from Blackbelt XP, we offer you insight into your licensing infrastructure and recommend ways to ensure you are fully compliant. Ultimately, you save on your licensing costs. Expert insights into your license position and Cloud spend allow you to achieve the best results when negotiating with your software vendor.

This process consists of 3 steps:

  1. Data Analysis: Collection of data regarding your licenses
  2. Expert analysis: our experts structure and analyze your data to give you the information you need to take the most strategic decisions
  3. Recommendations: use the advice in our actionable report to take control, cut costs and avoid compliance risks

Use the insights to optimize your software environment

Our experts will help you develop a detailed roadmap and the ideal optimization strategy. Once the strategy is complete, we will help you select the best software vendors for your business and negotiate contracts on your behalf.

Unlike other software licensing consulting organizations, Blackbelt XP is completely independent. We have no partnerships or relationships with software companies, so you can rest assured that you are getting the best possible terms.

Let us help you get the best results for your business! Contact us for a free quote.


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