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Principle 11: The scope, execution and intended outcome of an audit shall be clearly defined in the contract

Checking the correct use of software and the associated licences is a legitimate right of software suppliers.

Business users associations Beltug, Cigref, CIO Platform Nederland and VOICE call for a balanced cloud market: 11 fair principles to unleash Europe’s digital potential.

29 / 09 / 22

Beltug Fair Principles - Principle 11

 

But around a possible audit process, clear agreements must be made between supplier and customer:

  • Providers can make very complex licensing models. The customer does not know how to comply. Then comes the audit to find the customer flaws and impose penalties.
  • The outcome, objectivity and intended purpose goes often beyond the nature of a factual audit.
  • Often there is an additional aim of selling more licences, new products and services or pressuring the customer to a new platform or business model. Audits may not be misused for such ends.
  • During an audit, customers should not be held liable for software installed by default, but never used nor activated, for example by a licence key.
  • …

Business users are typically not against a contractually defined audit right but good agreements make good friends. Let us therefore conclude with this eleventh and last principle; the scope, execution and intended outcome of an audit shall be clearly defined in the contract.

  • cloud
  • international
  • Software

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Business users associations call for a balanced cloud market: 11 fair principles to unleash Europe’s digital potential

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Principle 10: Commercial models and offerings shall be consistent and reasonable, not combining different models for the benefit of the vendor’s revenue

Business software vendors and customers should all start with the end in mind; a clear, consistent and well-defined commercial model that’s a win-win for both parties. But practice is different. Business users associations Beltug, Cigref, CIO...

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