licensing issues are not mayflies but immanent preprogrammed in the construct of software acquisition. They also do not disappear, but get with every change in the license conditions new facets.
- What is a user?
- Get paid to go even for occasional users or External full price?
The questions revolve not only around the detachment from physical servers, but Next:
- What is the “indirect use” of the ERP system, for example via the Webshop
- Are “closures” or “partial decommissioning” allowed, for example, in replacement of the CRM module by another standard software or after the cessation of the business area in the course of restructuring?
- What’s with the purchase, sale and maintenance of “used software”?
We asked two experts on this sensitive topic. Our tip: Check your legal options carefully and use your scope to negotiate better contracts
ITM: What license models play today typically when purchasing a new ERP software a role ?
Axel Susen: Even the basic version includes a typical ERP software-related modules that are required by a medium-sized enterprises. Finance and controlling, staff management or materials management are key tasks in any business. According to manufacturers offer modular solutions that can specifically select and expand the user. Today more kinds of applications are added, because the employee has become mobile and works on the Internet or special apps.
In the end, we note that manufacturers are correspondingly creatively. They offer, for example, a user-dependent basic software, performance-related modules and quantity-based special solutions. the offer is completed by subsequent chargeable redefinitions of individual license conditions, as with web modules or so-called “indirect use”.
In addition to the actual ERP software should already be considered in advance the topic software maintenance. Before the use of ERP software, the topic appears trivial, since each party at a launch of the software the manufacturer’s support expected. The situation changes when the system than six months or a year passes without errors. This state of things will not reach everywhere, but the majority should think about the ratio of business-critical processes with software maintenance and non-critical processes without software maintenance. During the introduction, it must be ensured that no or only limited software maintenance will be paid during the statutory warranty period.
Klaus Aschauer: Although cloud-based subscription models come increasingly into focus through its flexible design options, we continue to see on-premise licensing clearly front. We offer our customers as an alternative subscription license model to ordinary projects on, this course more different models. And we advise you on which areas be worth different licensing models.
With Dynamics365.com we provide a cloud solution especially for smaller companies and start-ups, which we offer completely pre-configured ERP solutions based on Microsoft Dynamics Nav 2016th We want to attract businesses to ten users, which then an ERP standard software is including our industry solutions available that works completely out of the box. Also on the combination of on-premise and cloud subscription or licensing we make here thoughts. For both models, there are already very flexible approaches for different types of use.
ITM: The licensing by server-size seems out of date, because this can change through the use of virtual machines. The same applies for licensing to named-or concurrent users, because in e-commerce and Industry 4.0, customers, business partners and suppliers to work with software without wanting to worry about licensing issues beforehand. Which approach do you recommend in the configuration of the license agreement?
Aschauer: I can only speak of us and our possibilities here. We have made a lot of thought to how we can license our products based simple and to the respective benefits. From my own experience and the reports of our clients about how the competition operates, I can say that we are making with the Microsoft Dynamics license pacts in combination with our own products, very good results.
We have different ways of time-related use, the limited use for a multitude of applications, a portal licensing as for e-commerce applications or provide a process-related use. Basically, I believe that we can work out a consulting firm together with our customers the optimal licensing models precisely.
Susen: license conditions can change at times software vendors. A license agreement is for the user only really optimal, even though he may adapt the contract without disadvantages to changing business processes or changing corporate culture.
In my experience that few users can achieve contractually. Therefore, I recommend a mix of different contracts (for example, new contracts and used contracts) and various maintenance contracts (third maintenance or by the manufacturer – or none at all). Although the IT characterized serves more interfaces, the solution may be a different manufacturer help; I myself would always try to achieve freedom and savings that a manufacturer does not give me voluntarily with a used ERP solution. New license agreements sometimes provide restrictions in the license agreement that did not exist before – keyword: “SAP Limited Professional User”.
For users with up to 300 users are in the market and customized solutions smaller manufacturers offering manageable license conditions and still connect on-premise applications with a cloud solution.
ITM: What CIOs need to pay, so that they in spite of distributed corporate structures (eg locations, home offices, mobile sales force) and in spite of cross-company ERP usage no evil in an audit experience surprise when the licenses?
Aschauer: ERP applications and their use are becoming increasingly complex. From my perspective, it is as a CIO is no longer so easy to understand the different models. I recommend urgently to cooperate very closely with consultancies like Cosmo Consult. We have all the important and possible variants at hand, which have been developed to meet the needs of our customers go.
Susen: The easiest way is to purchase software to a sufficient extent and and to consider how a manufacturer-audit can be fundamentally prevented. Tip: When buying used software it falls certainly easier to also provide a surplus of software licenses.
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