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The Importance of Software Licensing

Companies spend a lot of money buying and selling usage rights to software and related services. As such, various types of software licensing agreements are becoming ever more important for both IT companies and their customers. Despite the fact that contract amounts are often relatively large in relation to the company’s other finances and that the product to be delivered often has an activity-critical function for the customer, it is extremely important that licensing agreements and the associated documentation be entered into. This is especially the case when the software licensing agreements are entirely business-specific.

As an example, states require operators of motor vehicles to hold licenses before they can legally drive on public roads.  The idea being that some type of minimal competence in driving should be demonstrated before an individual is allowed on the roads in command of a very large and heavy piece of machinery moving at a fast speed.  Almost everyone I have encountered (with the exception of a few teenagers less than sixteen years of age) agree that requiring drivers to be licensed protects the public.

When you visit a Dr.’s office, some of the first items you see are the degrees and licenses hanging on the wall of the reception area. Would you seek an exam from an un-licensed doctor? I think not. The fees they charge are based on the years of study and practical experience necessary to secure those degrees and licenses. An un-licensed outsource design company falls into the same category as an un-licensed doctor or driver. Be very wary of such companies.

Software-Licensing

Some of the reasons to ensure that the outsource design company you choose has the proper license:

  1. The design company you choose has the “Stamp of Approval” from the engineering company. There only a handful of these companies in existence.
  2. Hiring and training new employees is eliminated. The design company does this for you.
  3. If your company has multiple facilities, a properly licensed design company can use the software across state lines.
  4. A licensed design company has the right to the Intellectual property. Updates are automatic, thus reducing errors and down time
  5. Your company has a licensed and insured source to turn to for accountability in the event of an error.
  6. The design company has a close relationship with the software source and it’s engineers. You can make one call and get the answers you seek.
  7. Retrieval of sealed drawings can be outsourced as well.

The choice is clear: a company that is not properly licensed to use its proprietary software is a company to be wary of and to be avoided. Ask the question and verify the answer. You will be safer and happier with your choice.

Richard Gould – Design Administration

Gould Design, Inc.