How much is that software in the window?

How much is that software in the window?

Florence Court · August 16th 2019

“Florence, do you think we are paying too much for our software?” I get asked this question a lot by customers and the answer is usually “How do you think, you, as a customer would ever really know the answer to that question?”. Actually, our answer probably isn’t quite as robotic as that last statement, but the sentiment is the same, does the customer ever know whether or not the price they pay is too much?

Think for a second about how you purchase software, you purchase software either from a vendor or a reseller…can you really trust either of these two specialist cash extractors? Probably not. The software license purchase process is fairly straightforward if, of course, you follow a process. The problem we tend to find is that most people approach their purchases, or their renewals, as an inconvenience and something they want over and done with as quickly as possible. The vendors know this and often they try to speed this process up by offering more products at a higher discount or by sticking a ‘small’ increase on the products you currently have.

The vendor knows you need the software and they know that this close to the agreement expiring you don’t have any leverage or time to go and look at what you actually need. The vendor also knows that if necessary, they can use the threat of a Software License Audit to lead you to accept your renewal on their terms. So, despite your best efforts you often get pushed by the vendors towards last minute deals that over time do not benefit your business. So, what we suggest as an answer to the question “do you think we are paying too much for our software? is “do you know how much software you actually need to operate your business?”

Have you ever taken stock and looked at what software you have? How often the software is being used and whether all those additional products you were sold as ‘part of the deal’ have even been deployed. A 70% discount is absolutely meaningless if you are only using 10% of the software you have been sold – unfortunately this is a scenario we have seen happening more and more frequently.

At SAMcraft we work with our customers on a vendor by vendor, product by product basis to understand what you need and what the best deal is for your business. If you’re interested in knowing more about how you can pay a fair price for the software you need and no longer be held to ransom by the vendors then email nofear@samcraft.co.uk


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