Are you sure you know everything before signing on an ERP software licensing agreement?

You can’t deny the fact that the moment you see that box called ‘Terms and Conditions’ on your screen, you quickly watch out for the ‘Agree’ checkbox as soon as you can so that you can get prompt access to the software. As compared to other social media software or other sort of consumer software sign-offs, the agreement of an ERP software is a different ball game altogether. The risks are considerably higher than that of the others. The only thing that is common is that reading pages after pages of contractual language can seem tough for the readers in both cases.

The upshots of reviewing the ERP software incompletely can be intimidating as there can be possibilities of different types of gotchas. So, here are few things that you should know before signing on the licensing agreement of an ERP software.

#1: What are the numbers of users who can get access to the software?

The foremost thing to note is the number of users the software will allow. Remember that this is not just a simple number. Do you know the exact meaning of the term ‘user’? Well, the answer can vary according to different contracts but the most common variants are ‘named user’ and ‘concurrent user’. With other factors remaining the same, concurrent user licensing is the more customer-friendly out of the two and hence you need to check the number of users that the software allows.

#2: For how long can you use the software?

There are different approaches to determine the total amount of time for which the software can be used like term-based licensing and perpetual licensing. Majority of the sellers of on-premise ERP software solutions provide license on a perpetual basis. Once you buy the software, you can use it in the way you want. On the other hand, term-based licensing is the main model for SaaS deployments. So, you have to choose the one which suits your business needs.

#3: What functions does the contract designate?

Modular ERP systems offer the benefit of licensing only the functions which you require. When it comes to ERP system software, you have to ensure that your software licensing agreement covers definite features which you’re predicting to receive. Therefore it is always better to look beyond your immediate needs so that you can understand in what way modules which you need later will be licensed. Know whether your payroll functions are joined within a broader suit of HR functions.

#4: What kind of support is included in the agreement?

Soon after the implementation of the software, you won’t require too much support. Nevertheless, due to the complex nature of the software, the users might have too many queries when they face bugs or jams. Therefore the software license has to definitely ensure that you will receive a different level of support which you expect.

Therefore, if you’re thinking of seeking help of an ERP software, you may check out for more details on the functioning of this software.

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