Often such products end up being included in builds without any checks on the licensing, and therefore proliferate as the organization grows or builds are standardized.
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Micro focus software software#
A particular issue with terminal emulation software, where at one point the software may have been licensed more broadly and deployed across large parts of the business. The software publisher may have partial or no record of your purchases. Poor entitlement documentation, often on both sides – as with any vendor audit, their data may not be more accurate than yours, particularly if purchases have been via resellers or system integrators.The most common compliance issues identified by Micro Focus customers going through audits include:
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Recruitment at this level does, however, suggest continued growth in compliance activity in the foreseeable future. A quick check of the Micro Focus website on Monday resulted in nine such vacancies, with one in the Philippines, one in Germany and the rest in the United States, which reflects the industry-wide change in audit focus from Europe to North America over the past 5-10 years.
Micro focus software license#
Since the acquisition of The Attachmate Group in 2014 there has been an increase in customers seeking help with audits across the Micro Focus product set, and during this time, several license compliance roles at Micro Focus were advertised, primarily in the UK and Europe. While there is less room for leverage, and contract terms relating to license non-compliance mean that contractual discounts do not apply, audit settlements are indeed new license purchases because they are either back-maintenance payments or payments in advance for an agreed period (usually somewhere between 12 and 36 months). All sales resulting from software audits usually fall under either ‘new license sales’ or ‘support & maintenance’ as they can be legitimately claimed to be one or the other. Micro Focus International’s “ lower than expected license income” has resulted in a projected fall in revenues of 6%-9% How much revenue comes from audits?Īlthough I’m often asked what proportion of a vendor’s revenues are made up from audit income rather than from new software sales or support and maintenance revenues, this isn’t something that businesses are typically required to account for. There were also concerns about the extension of audit activity to the HPE software portfolio (HPE had traditionally carried out very little audit activity and most of that had been focused on the quality management and testing products). This may well have reinforced reservations as to whether Micro Focus, traditionally focused on supporting legacy applications, would have the appetite or ability to drive development for the growth products it was acquiring. At the time, Kevin Loosemore (Micro Focus executive chairman) told the Financial Times that the HP product set was a good fit because there was more margin to be made from looking after existing customers than inventing the next big thing. Market response to the merger was mixed, with financial analysts focusing on the ownership split and the size of the deal, and the scale of the challenge ahead with Micro Focus moving from gradual growth through small acquisitions to trebling its workforce and potentially doubling revenues. What was expected from the Micro Focus/HPE Merger? Micro Focus has also been known as one of the more aggressive auditors of its users, and it has been more willing than many other vendors to resort to litigation in the event of a dispute.
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It has also acquired many technologies with a ‘locked-in’ customer base (customers that are either reluctant or unable to migrate to competitive solutions). Throughout its history, Micro Focus has acquired many technologies that support legacy systems, allowing IT organizations to avoid the headache of migrating to newer technologies.