Changing business software in 2019? Here’s a tip to avoid a contractual risk.

When do your current system contracts renew/expire?

One of the most overlooked “traps” that I encounter with clients who are looking at a software replacement or upgrade, or executing a digital transformation program, is the risk that existing software contract terms & obligations are ignored. Everyone’s busy negotiating the new ones and planning the project/program.Contract Termination extract

Whether you are on annual maintenance/support for on premise systems or SaaS (software subscription) contracts, take another look now at the terms regarding automatic renewal, or minimum advance notice of cancellation before renewal date.    Do this for all affected contracts.

Why?

Your business case for the new software should have included the savings from paying for software being replaced (and the related hardware too, if you system is on-premise).  If you missed the option to cancel (or to re-negotiate to monthly or quarterly until you go live), then you will not make your business case work. That’s not a good thing to have to tell the CEO.

Questions?

If you’re looking at modernizing or upgrading software, or executing a digital transformation strategy, and would like to discuss how to approach that, please reach out  to me via lgreen@haygarthconsulting.com. Thanks!

 

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