Pot committed software#
But if we get back to the sales process, you want to consolidate the number of vendors and applications in your environment and the software vendor is offering you a high-profile agreement. Usually, these agreements are “all-you-can-eat” type contracts with fixed payments. Sounds good? the problem is commitment, as invariably you will be required to move to that vendors technologies and solutions out of necessity or encouragement. Once those vendor technologies are deployed, there is no going back. Two reasons that you cannot change now are: This is a great initiative if it works. Unfortunately, these capabilities are often oversold by the vendor – the integration never happens, and you could end up paying huge sums for shelf ware. You have one or several products from this vendor already and most businesses want to consolidate and integrate more of their infrastructure and applications. The software vendor wants you to commit more of your software portfolio with them.
This appears to be most common among bigger vendors and concerns enterprise type customer agreements (Oracle ULA, Microsoft EA, IBM, SAP and ServiceNOW). Let me elaborate… It is accepted in the industry that many software vendors use lock-in agreements as sales tactics to hold on to your business. How Software Vendors Use Lock-in Agreements or Committed Investment Guilt to Retain Your Business
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