Documents
Case Publications
WLU S/W Maintenance Contract
Ron Craig
published: 2006 | Case Study | MIS
Subject Area: MIS
Key Issues: Total Cost of Ownership; Negotiating with a software supplier
Case Description: The IT Officer of a medium-sized University must make two decisions. His university uses an enterprise software package, which, while bought and paid for, still carries an annual maintenance fee. This fee is currently $76,000 and increases by 10%/year. The uplift rate can be reduced by contracting for a longer period of time. For how long should the university lock itself in? Additionally, a few years previously, the university lost most of a $95,000 US credit for returned software. Rick must decide whether or not to pursue additional compensation. Legally, there is no recourse. Are there any reasons why the vendor might be willing to provide more compensation than already received by the university? Can Rick come up with a win/win scenario?
# Case Pages: 8
Case Number: 050015-W
Teaching Note: Yes
revised May 24/06
View all Case Publications documents | View all School of Business & Economics documents
