If your business is going to buy any kind of software, there’s going to be a contract involved. In this episode of the Tech Truths podcast, The Truth About Negotiating a Software Contract, Alpine’s Senior Director, Allen Ozyazgan walks us through his top tips for contract negotiation.
Listen to his insights, or read on for a summary.
Allen Ozyazgan of Alpine Supply Chain solutions has been in the supply chain industry for close to 30 years. He has been both on the client and vendor side, and has had years of experience both buying and selling software. Nowadays, he works as a consultant helping clients evaluate, select, and implement supply chain software solutions. One of Allen’s main areas of expertise is his ability to help customers work through contract negotiation.
Allen understands that shopping for software can be overwhelming and losing objectivity and forgetting to ask the important questions needed to make an educated decision are common pitfalls. That’s why knowing what goes into negotiating a software contract before you get started is so important, especially as the way we purchase software has changed.
Negotiations were simpler in the past, as it was all about on-premise solutions. But with the growing popularity of SaaS solutions, there are a lot more considerations and components to think about: hosting partners, contract duration, fluctuating users, etc. This means negotiating ends up being about more than finding the right solution for the right price. It’s now centered on finding a solution that will meet your needs for the long haul.
When it comes to negotiating a software contract, Ozyazgan says there are two categories that need to be evaluated:
- Functional, technical, and architectural
- Overall business impact
All of these areas need to be considered before there is a total cost of ownership discussion.
At the end of the day, the most important piece of the puzzle is ensuring that companies are buying the right mix of software, at the right price, for the right length of time, without overbuying. It’s also important to know that negotiations start long before you think they might and that while 95 percent of the details involved in a contract are negotiable, there are a few items that are not!
Listen to the podcast for the full scoop! And if you’re looking to purchase new supply chain software this year, you’ve come to the right place. Simply reach out – we’ve got you covered.
