Acknowledge Outsourcing in Your Software Licenses

Interesting little tidbit on today regarding software price hikes you may face when you want to transfer licenses over to your service provider. In “Outsourcers face 150 percent software price hike,” by Andy McCue, Alexa Bona, a licensing maven for Gartner “warned that most software license agreements do not include rights that cover outsourcing, and some expressly exclude it.” Companies cited include Oracle, PeopleSoft, SAP and Siebel. Her suggestion: Negotiate a clause up front before signing new licenses that allows for the possibility that you might need a transfer in the future because of outsourcing. The story concludes: “Timely negotiation of license transfer clauses can reduce the cost of the agreement by up to half.”