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News You Could Do Without

News You Could Do Without

by Mike Masnick


Filed Under:
audits, criminals, customers, software

Companies:
emc



When You Treat Your Customers Like Criminals, Don't Be Surprised When They Go To Different Suppliers

from the a-simple-warning dept

An anonymous reader sent in the following story about how some large software companies are suddenly increasing the number of "software audits" they're doing of enterprise buyers. Most enterprise software contracts include license terms that allow the software provider to "audit" the buyer, to make sure they're not abusing the license. As the article notes, however, such audits usually only come at one of two times: (1) when a company threatens to switch to another vendor or (2) when the company has received info from a reliable source that the license was being abused.

However, it looks like with the economy in freefall -- and IT spending being cut back, some enterprise software companies might be thinking that another way to squeeze some money out of customers is to audit them and force a larger bill on them. Of course, this seems like a plan that could backfire in a big, big way. As noted in the article, being audited is not a pleasant experience at all. It's basically a vendor claiming that it thinks you're breaking your agreement. It's not the best way to build up a strong relationship of trust. Because of that, a sudden increase in totally unexpected and uncalled for audits may seriously damage a company's reputation and drive them to proactively look for alternatives from companies who trust them. Treating your customers like criminals is never a good idea...

40 Comments | Leave a Comment..

 
Deals

Deals

by Joseph Weisenthal


Filed Under:
software, virtualization

Companies:
citrix, emc, vmware, xensource



One Day After VMWare IPO, Citrix Buys Into Virtualization

from the coincidence? dept

We're sure the timing of this is a total coincidence, but just one day after EMC subsidiary VMWare skyrocketed in its market debut, software maker Citrix systems has announced the purchase of Xensource, a privately held maker of virtualization technology. It's hard to say whether Citrix got a good price on the $500 million deal, but considering the timing, you have to figure that Xensource was able to attract quite the premium. As Paul Kedrosky noted yesterday, the VMWare IPO seemed likely to spur the hunt for more such deals. Who knew things would get kicked off so quickly?

3 Comments | Leave a Comment..

 
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