Re: Do CIOs really take software contracts too casually?
I understand your question on the price escalator. On the face of it, it might seem unnecessary. However, bear in mind that the vendor software support is for a major application or a set of core applications. And, the vendor will usually require 5-year terms. After all, the vendor is supporting a critical application for your company and you want to be sure that scheduled maintenance, application upgrades and regulatory changes are promptly and accurately tested and deployed. That is why it is so important to negotiate all of the software features your company requires: near term and expected in the future, and the level of service (SLAs) you require, with associated penalties if not met. Bennett