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ARTICLE: Ensuring Vendor Support ? Guarantees are great, but get them in writing.

By: Ed Praytor, C.D.P., C.C.P.

Updated version Copyright© 2003, Systems Management Resources, Inc.

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The availability of ongoing vendor support for software packages is one of the main benefits of the \"package approach\" to automation. To purchasers who are unable to provide for themselves the analysis and programming necessary to keep their system current, this consideration becomes especially important. Consider this letter recently received from a Forum reader:

For years now I\'ve heard and been told by some representatives of a major hardware/software vendor that there is a period of time after a product is developed and marketed that there is a period of time after a product is developed and marketed that the product, by law, must be supported. Is there some truth to this or not?

Case in point. I\'m the senior vice president in charge of data processing and information systems. Not more than 20 months ago we converted to a much larger mainframe and software package, only to learn 90 days later the software package would no longer be enhanced or improved, but merely supported for fixes or regulatory changes. Does our vendor have a legal obligation to continue the support for a certain length of time?

Our company made every attempt possible to assure the future of this package with regards to ongoing developments and enhancements. Could we have protected ourselves in the contracts?

We are now faced with the decision to evaluate alternatives for our future data processing needs. How can we protect ourselves against the same thing happening again?

This fellow is in a highly competitive environment which requires frequent system updates to comply with business changes. He does not employ a large Information Technology (IT) staff, having relied on the vendor to keep his organization out of trouble. Obviously, he now has a problem. The events he describes are common and, in those cases where the vendor has been less than candid with the client, can result in substantial damage. So what can be done?

First of all, the expectation of continued support is a matter best incorporated in contractual documents. It is, to my knowledge, inadequately covered by specific laws requiring such support. For someone who has the problem today, obviously the contracts are a fait accompli. A close reading of the contracts might yield some leverage to use. Warranty provisions are those most likely to be enforceable from existing law, if the duration of the warranty is sufficiently long, and the definition of coverages reasonably specific.

On a purely contractual basis the representations that the vendor made, during the sales process, of product support and implementation support services may constitute a specific or implied contractual commitment. The strength of this commitment depends on the wording of the contracts. But the idea here is that if during the sales process an extensive support program was described (and put in writing) without the caveat that it could be withdrawn at any time, a breach of contract may exist.

My experience is that if a matter such as this one ever gets into litigation, the purchaser has already lost. Some compensation is usually obtained, but the vendors almost never continue an effective support program on a product once they decide that it\'s not in their corporate plan to do so. The exception to this is a situation where their client contract is specific enough to prevent them from considering withdrawal of support.

To protect your organization from future problems in this area there is a plethora of contractual, strategic, and tactical techniques available for your use. Here are a few.

 

Contractual Provisions

- Commitment to provide a minimum number of product support years at specified prices.

- Description of minimum level of services provided under product support.

- Commitment of the vendor to provide a viable migration path to the next software generation. Be specific on the services to be provided.

- Escrow provisions on source code. Ability of purchaser to obtain current versions of base system on demand.

- Ability of purchaser to share modifications with other users.

- Right of purchaser to allow access to system by third-party maintenance organizations.

Strategic Moves

- Involvement of purchaser\'s IT staff in modifications to package.

- Development of adequate documentation.

- Users\' network development.

- Internal coding standards to enable transportation of modifications to new versions of software.

Tactics Available

The following tactics should be used only with discretion.

- Coordinated users\' group pressure for continued support.

- Recruitment of vendor\'s staff.

- Lend/lease your own staff to vendor.

- Legal remedies.

- Third-party maintenance.

Lest we appear too negative, withdrawal of product support for packages is a normal event in the lifecycle of a software product. It\'s not the withdrawal per se but the way it is accomplished that separates the good vendors from the bad. Ethical vendors exhibit a tendency toward full disclosure of plans and a degree of concern for, and gentleness with, their client base throughout the withdrawal process. They provide a viable, economic migration path to their installed base.

Fortunately for the industry these ethical vendors predominate in today\'s software package industry.

Ed Praytor is president of Systems Management Resources, Inc., an Atlanta, Georgia firm that specializes in assisting companies with software package implementation and use and litigation support.

 


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