What CIOs Need to Know About Enterprise Licensing Agreements

Simon Park, analyst, authored this byline article about getting the most value from enterprise licensing agreements. Sample excerpt: “Enterprise licensing agreements (ELA) are contractual agreements that align vendor and customer incentives to provide select software at discounted, fixed pricing over a period of time. Despite cutting into profit margins, ELAs protect vendors that arrange steep discounts for high dollar, lump sum purchases. Similarly, ELAs protect customers by providing immediate access to established software offerings at a significant discount. This is optimal for the customer when the total dollar value of an ELA is consumed but not when ELA consumption limitations are never approached or surpassed.”

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