Single entity vs. multiple entities licensing
When you purchase software, you may be buying for your individual market, OR for the region OR for global level application. In case you are engaging vendor for a market OR a region (combination of few markets), one should get an understanding of the cost in case we need to expand the geographical usage base for the application to new markets OR regions.
Licensing of supporting software
While the software license may come cheap, but the system software it required may be costly. Try to understand the overall cost of licensing of all systems involved.
Per user vs. enterprise licensing
If you are having an existing large OR expected to be large user base, understand the differentials between the per user vs. enterprise license (with OR without number of users cap).
Intellectual property rights (IPR) of company specific changes
Vendor has the IPR for his software and all associated knowledge base (training, documentation...). However, sometimes the software may need to be changed substantially due to company specific needs.
For Example, Say a vendor is selling a business intelligence application with pre-build reports, views, KPIs etc. The same gets changed due to company specific needs. Company would expect the changed models and configurations (the implementation of which is being done at company's expense) to be owned by the company and not by the Vendor. Sometimes company and vendor agree to share the ownership in exchange of low cost implementation deal from the Vendor.
PLEASE REFER COMMERCIAL EVALUATION MATRIX Execution-MiHPractice Tool to enable an effective COMMERCIAL & CONTRACTUAL Evaluation for a tool/solution provider.
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