Ten essential SLA considerations for license agreements

Software license agreements, with few exceptions, include terms and conditions in 10 broad areas. This guide presents the subject in plain English in the form of questions to ask and points to consider during the negotiation or contract evaluation process. Our approach aligns IT procurement’s objectives with the business user’s needs. Here are the 10 key areas:

  1. What software are you buying and what services does the contract include?
  2. What usage (licensing) rights come with the software you’re buying?
  3. Where is the software running and who controls it (application service provider,software-as-a-service, virtualization)?
  4. When will you pay for the software?
  5. How much does the software cost now?
  6. How much might the software cost later?
  7. What happens if there is a dispute or suspected contractual variance?
  8. What happens if the relationship ends or changes significantly?
  9. What common terms (“boilerplate”) help define a complete legal agreement?
  10. For custom development or custom implementation, what constitutes acceptance of the customized software? Who will support and control the customizations?