Oracle Corporation et al v. SAP AG et al

Filing 850

Declaration of Jason McDonell in Support of 848 Memorandum in Opposition, Declaration of Jason McDonell in Support of Defendants' Opposition to Plaintiffs' Motion No. 2 to Exclude Expert Testimony of Brian S. Sommer filed bySAP AG, SAP America Inc, Tomorrownow Inc. (Attachments: # 1 Exhibit 1, # 2 Exhibit 2, # 3 Exhibit 3, # 4 Exhibit 4, # 5 Exhibit 5, # 6 Exhibit 6, # 7 Exhibit 7, # 8 Exhibit 8, # 9 Exhibit 9, # 10 Exhibit 10, # 11 Exhibit 11, # 12 Exhibit 12, # 13 Exhibit 13, # 14 Exhibit 14)(Related document(s) 848 ) (McDonell, Jason) (Filed on 9/9/2010)

Oracle Corporation et al v. SAP AG et al

Doc. 850 Att. 10

EXHIBIT 10

Dockets.Justia.com

Pive simple

steps to reduce

software

maintenance costs

Community

ComputerworldtiK

Page

of

community Five

blogs

forrester

view

application

development

simple steps

to

reduce

software

maintenance

programme management costs

Posted

by

Ray

Wang

ShareThis

Maintenance

costs represent software

ma or part
vendors

of the software

budget and the

largest

growing

source of revenue for

In fact

an

aggregation

of the past four quarters of software double
digit

vendor

financial

results

definitively

demonstrates

declines

in

new

license revenue dollar for

even more based vendors

exacerbated

by the

evils

of currency

flux from the strong

US

Not surprisingly vendors maintenance revenues
the major concession

are

hard

at

work

vigorously

protecting

their

70 to
in

80%

margin

in

just as clients
target

and readers
contract

of this blog

now

zero

on

this line

item as
to

during

negotiations

Here

are five

steps

you need

do

now
Assemble
all

the relevant

contract
that

information
its

Aggregate
accessible
call for

all

your contract

information of your

and vendor interaction history so maintenance agreement upgrades spend $200k vendor Examine

centrally

Determine

the value

how

often you

support apply

patches conduct and maintenance
pretty

and require technical
customers especially
will

assistance
for

Then

calculate the total

support can

Most pop
better

find that

$1M

year

support

calls

be

pricey

at

when
the next

upgrades

arent in the picture for the next 24 gloves

months The

show up
the total

day with white

and be there
shelfware
is

in

person
licenses

Breakdown
purchased

cost of shelfware
that is

Simply put

the software

not

deployed

incuning support

and maintenance fees
only ended up using

That great deal

years ago you got on 1000 user licenses when
bite

you

800 now comes
at

to

you

in the butt

Calculate
is

the maintenance fee you

have for 200 user licenses

20% annual support and maintenance $200000 $120000 you had better make up the bigu discount you got for buying 12% this year and 15% the next year at least
$1000/user

which

years At 1000 user licenses by

Craft your overall
software

software adoption Assemble
experts the domain business

strategy Consider the business
experts

drivers

that

impact

adoption
legal

vendor management and sourcing
IT

professionals

proof apps ownership

strategy

and determine

owners and when and how
will

team Apply What
roles

long

term

apps/

recession

licenses will

be used
will

in the

software

lifecycle

What

processes

be supported
an alternative

use

the software

When

will

you upgrade Can you
all the

consider

Determine

alternatives
to

Depending

on your adoption

strategy

multiple

paths party

exist If

there are no intentions

upgrade or enhance

the software self support
as

and

third

maintenance
considered

3PM
In
If the

options

from vendors such
should

Rimini

Street

and Spinnaker should
switching
efforts

be

some cases an upgrade
system can
the negotiation

be completed before

over to

3PM
will

or

self support have leverage

be replaced
If the

begin vendor selection system cannot

so that

you

during

be replaced

consider

swapping

out

unused

licenses for credit

towards newer
reducing

or

more

desirable

modules Reduce

your CPI for

new maintenance Focus on
expires Put preparation

new

license costs at least one quarter
to let

Follow-up with your account representative on your side and begin

before

the
to

contract

your

sales

rep

know

months

in

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Five

simple

steps to

reduce

software

maintenance costs

Community

ComputerworldUK

Page

of

advance

that

you are unhappy you need

with
to

the current agreement

Based

on

steps

to

you now

have the ammunition

negotiate

from

position

of strength

The bottom
strategy
Successful should

line

align your contract

negotiations

strategy

with your product

adoption

negotiations

will

require these

steps

However

more importantly

organizations

keep

current apps

strategy

and product
lack
to

adoption

strategy

Without

these two

key documents
that
fail

of visibility

into

the business

case

will

lead to

shortsighted negotiations

meet the true requirements
should

of the business

Sourcing
experts contract

procurement
can provide

and vendor management professionals
third

partner with
will

domain

who

party

independent

and objective
contract

advice

that

complement
tips

negotiations

strategy

Click

here for more

negotiation

strategy

Got more

enterprise software
for

contract

negotiations

questions Set up

call with

the inquiry

team and ask

Ray Wang

Your Turn Whats your
best practice in reducing

maintenance costs Post your comments

here or send

me

private email to [e-mail]

Contribute

to

the 2009 Enterprise

Software

Licensees

Bill

of Rights

Take

the

new
Bill

poll on what

rights should be are preferred

included

in the

2009 Enterprise
idea or

Software

Licensee

of Rights

Posts

For

every

good

we
the

use your idea well send

you
the

copy of the final report
clients

comment whether or not Lets put the collective wisdom of
the to

web

to

work and

help

our end user
official

create
in

fair win-win playing field with look forward

vendors input

Well be publishing

update

Q2 2009 Thanks and

your

Caveats
counsel

are as follows
official

This

does

not constitute This
to

legal

advice
not

Please

consult

your

legal

for an

opinion
rules that for

and wording must be applied compliance

does

consider

any procurement or

vendor management

your enterprise
negotiation

Please

work

with

your
insight
is

vendor management teams
into overall

Contract
are

support
as

provides

trends

and price points

Benchmarks

not provided

each

user scenario

unique 2009

Copyright

Wang

All rights

reserved

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maintenance costs

Community

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