Software Contract Negotiation Tips

Negotiating software contracts is a very important part of your software selection project. The software vendor writes the contract to protect their interests in the engagement. You need to negotiate the contract to protect your interests.

Enterprise business software (ERP, HR, CRM, Financial software, etc.) contracts are typically very negotiable because the software vendors are looking to lock up a long term customer. They know that if they can get a customer in the door even at a discounted rate, they will have a long term maintenance revenue stream that should last at least 5-10 years. The reason for this is that after such a big investment, companies are reticent to change software solutions for many years. Therefore, it is important to remember that the time you have the strongest leverage with the vendor is during the negotiation before signing the contract. Make sure you use that leverage to your advantage.

There are basically 3 contracts that you will sign for a standard on-premise implementation.

1. Software License – This contract outlines the terms of use of the software. The pricing for the software license is typically set by module on a user or concurrent user basis. The software license is usually heavily discounted in the sales process so the software vendor can acquire the new customer.

2. Software Maintenance – This contract outlines the terms for support, maintenance, updates and upgrades. The cost for this service is usually an annual fee of 18-22% of the list price for the software license.

3. Implementation Services – This contract outlines the statement of work, hourly rates, and plan for the implementation. The cost for implementation services is based on the hourly rates of the implementation consultants and the estimate of hours to complete the project. A good rule of thumb for implementation cost in a mid-market environment is a 1:1 ratio with the software license cost. In other words, for every dollar of software license cost you pay, you can expect to pay a dollar for implementation services. For larger companies in more complex environments, this cost can end up being much higher – 2:1 or even up to 10:1 ratio.

If you are buying software in a Software as a Service or SaaS environment, then you will have a Service Level Agreement (SLA). This agreement includes the right to use the software as well as the hosting and data ownership clauses that will be necessary for the engagement.

A few key software contract negotiation tips to remember:

1. The software license is typically heavily discounted up front. Make sure that you look at the whole cost of the software over a 5 year period including maintenance, support, and implementation services.

2. Make sure that you define the terms of the agreement. For example, some vendors will include full payment upon software “installation.” This means that they can charge you the full cost of the software license when they come into your offices and insert the CD, even if there have been no modifications or implementation services.

3. Negotiate the statement of work before you sign the software license agreement. Make sure that you understand exactly what you are buying – including the implementation services plan.

4. Negotiate near the end of the vendor’s fiscal year or quarter end as large discounts can be negotiated so the software vendor can achieve sales goals. We have seen clients sign contracts late at night on December 31 and recently had a customer that was offered a 40% discount if they would sign by the end of the quarter.

Finally, understand that some clauses are negotiable in a software contract and some clauses are not. We recommend that you get assistance with the contract negotiation from a consultant experienced in this area. Their understanding can save you thousands of dollars and can help protect your interests in the contract.

The goal of software contract negotiation should be to have a long-term partnership with the software vendor. This means that the negotiation should not be adversarial. Instead, negotiate with the intent to reach an agreement that is a win-win for both parties for a successful relationship.

What to Consider While Buying a Ladies Watch As a Christmas Present

Christmas day is the day of a lot of celebration and festivities. It commemorates the birth day of the Jesus. On this day, Christians from all over the world offer special prayers. The common customs practiced on the day of Christmas are gift giving, exchange of greeting cards, display of various decorations, including Christmas tree, lights, mistletoe, and nativity scenes. Christians organise many gatherings, music parties and do many other festive activities.

Apart from all the colours of the Christmas, the major element of the celebration is the gifts. A gift shows love and affection to the other person. It is the symbol of how much you remember and care for your loved ones. Everybody waits for the other to present a gift.

Of all the gifts of the Christmas, watch is a precious and long lasting gift. Especially, when we talk about the ladies gifts, watches are given the first priority. Buying ladies watch is not as simple as it seems to be. Watches are classified into sports watches, jewellery watches and dress watches. Before you buy a watch, many things should be kept in mind.

First thing is to see for whom you are buying the gift. No doubt, it is a timely gift for everybody, but the designs and styles may differ from person to person. It can be presented to your sweetheart, mother or your sister.

Before buying a watch, you should first set your budget range. Do not go for only one brand. Always visit the market first and then go for comparison shopping. You can find both local and international branded watches on variable prices.

Ladies watches are available in many designs. Apart from the relationship and the price, the taste of the person, to whom you are presenting, should also be kept in mind. For example, if the lady loves delicate and elegant watches, Bulova women diamond chronograph watch is the best choice. This elegant watch contains sixteen framed diamonds with a white pearl dial of Bulova. The case is made up of attractive and bright stainless steel.

Some women like to wear large dial watches and the others prefer small delicate dials. Before buying, the wish of the lady should be given the first preference. Seiko women Coutura diamond watches present the 26 millimetre case diameter with the sapphire crystals over the boundary.

The other thing you should keep in mind is the fashion. For women, who are fashion-conscious, the selection of a watch that is new and according to the fashion is the best. Companies keep on updating their collection. So, go for the new and unique designs.

Some women like sophisticated watches, like the watches with leather strap. Some like to wear watches with the straps embedded with precious crystals. The Cartier women Francaise Swiss quartz watches have crystal embedded and stainless steel bands. Seiko Watch is among top brand of watches.

The other criterion for the selection of the Christmas watch may be the colour of the dial and the strap. Companies present watches in wide range of colours and styles. Many companies offer wrist watches, especially designed for the festival of Christmas, having specific designs and colours of the occasion.

We can say that graceful watches are the ornament of the women. It is a timely gift that enhances the personality of a woman, giving her a matchless and flawless look.

Proper Positioning Will Lead to Successful Negotiation Outcomes

Before you negotiate, do you consider how your positioning will influence the outcome of the negotiation?

When I speak to groups around the US and other countries, about improving their negotiation skills, I talk about the inherent value that positioning holds. I get a lot of inquisitive responses when I state, the way you position yourself sets the stage for the direction in which the negotiation will proceed. There are several reasons why positioning plays such an important role before, during, and after a negotiation. They are …

1. Positioning before the negotiation:

Before sitting down to negotiate, people have a perceived perspective of who you are. To the degree you match their perception, you set the stage as a congenial, tough, or moderate negotiator. Depending upon the style the other negotiator uses, you can find yourself entering into a collaborative or combative negotiation sitting.

a. Positioning really allows you to ‘set the stage’ before you begin to negotiate. Observe the following example.

i. A friend of mine recently sold a property she owned to a close associate of hers. Before they agreed upon a price, her associate told her, he had already started packing his belongings to move to the new location. He went on to tell her how he was going to furnish each room and the fact that he had told all of his friends about the new house he was moving to. After all of that, they sat down to negotiate his purchase of the property. Needless to say, they were far apart on the perceived dollar value of the property. In essence, my friend’s associate had really mis-positioned himself to the degree that he had given my friend insight into how anxious he was about moving to the new location and the fact that he had mentally ‘put’ himself into the house.

In the end, the two of them worked out an arrangement that both could live with, but had the two not been close associates, the price difference could have made the ability to reach an agreement insurmountable.

2. Positioning during the negotiation:

Positioning during the negotiation takes on the mantel of how you use your body language to convey subtleties of agreement and disagreement to offers and counteroffers made during the negotiation. It should also take into consideration the ‘role’ you create for yourself and the degree of flexibility you display to being open to new ideas that are introduced into the negotiation. If you’ve positioned yourself properly, based on the plan you’ve set forth for the negotiation, this phase of the negotiation should lead effortlessly to the final phase of the negotiation.

Note: When negotiating, you should never give out the kind of information my friend’s associate gave to the person with whom you’re negotiating. By positioning himself in the manner in which he did, he weakened his negotiation position substantially. Had he been negotiating with someone other than a friend, he could have found himself without a new house and embarrassed in front of his friends.

3. Positioning for the close and what comes after the Negotiation:

As you seek a favorable conclusion to a negotiation, your positioning of what will occur next and how the covenants of the negotiation will be addressed will have a great impact on the probability the deal will stay together. At the conclusion of the negotiation, if you’ve positioned yourself in a manner that sets the expectation that the deal was hard fought and fair, you have begun to subliminally set the expectation that all parties involved are happy and satisfied with the outcome; it goes without saying, you need to get the other party’s ‘buy in’ to that perception. By positioning the outcome in such a manner, you’ll be setting the stage whereby the way the outcome has been cast will stay intact.

In the same manner people make judgments about a book, a building, and many aspects of life, they do so by the façade they see and perceive. In order to enhance your negotiation outcomes, understand the importance of positioning and the overall impact it has on the outcome of the negotiation. Position yourself according to the ‘role’ you will play before, during and after the negotiation and your negotiations will be a lot smoother than what might otherwise be the case … and everything will be right with the world.

The Negotiation Lessons are …

· When contemplating any negotiation you might participant in, consider what image you wish to display. In so doing, you’ll gain insight into how you should position yourself to portray the persona you wish to project. The positioning of that persona will determine how the negotiation will progress.

· As you create the image you’ll project in a negotiation, consider how that demeanor will be received and the overall effect it will cast throughout the negotiation. Be sure to choose the right image for the right situation.

· Always have multiple images that you can project depended upon the situation you find yourself in during the negotiation. Take into consideration how one image will morph into another and how different images will be perceived. Tie your images to the overall positioning you’ve created for the negotiation.