Shelfware is software that you are no longer using or no longer need.

  • It can range from too many users.
  • It can be modules you no longer need or functionality that no longer meets your needs.

The first step is avoiding getting into this situation.

  • You can’t just rely on what your salesperson recommends or what your competitors are doing.
  • You need to understand your present state, your business processes, and what your future state will look like.

From a legal perspective, the goal is to ensure that the contract includes as much flexibility as possible regarding usage metrics and restrictions.

  • Ideally, you want the ability to swap unused functionality, licenses, and users for other functionality.
  • You want to include future options in the contract so that you can ramp up over time.
  • You also want to include the ability to remove users/licenses, etc., from the contract without penalty.

We have developed novel approaches that software vendors are likely to agree upon.

  • Focusing on change management and what your users need is one of the best ways to avoid shelfware.
  • Having the flexibility to swap users, modules, and functionality is great, but if your organization is reluctant (or refusing) to use the software, future options and swapping SKUs are not going to save you.

I discuss these issues in my latest video.

Photo of Marcus Harris Marcus Harris

Marcus has established one of the country’s leading practices devoted to drafting and negotiating Enterprise Software related licenses, implementation and SaaS agreements, as well as litigating failed software implementations in courts and before arbitration panels across the country. He is one of the…

Marcus has established one of the country’s leading practices devoted to drafting and negotiating Enterprise Software related licenses, implementation and SaaS agreements, as well as litigating failed software implementations in courts and before arbitration panels across the country. He is one of the foremost attorneys in the country representing government entities, distributors and manufacturers in recovering damages arising out of failed Enterprise Resource Planning (ERP) software implementations.