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Software licensing - purchase should be made by operator or main company?

Posted on 2016-11-29
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Last Modified: 2017-01-17
HI - a general question on software licensing.

Main company owns the building and the business profits go to it etc, but they have a separate company running the day to day running of the business.

They need to replace the computer system, and this includes Operating Systems, databases etc.

Basic question is; should the software for the new system be purchased and registered to the overall business, or to the business that actually uses it on a day to day basis? In other words, is there a difference between software owner and software user?

Thanks for advice on this.
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Question by:mewtd
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by:CompProbSolv
ID: 41906049
Which company is more likely to be in business through the life of the software licenses?  That's the one I'd have purchase licenses.  If there is no difference between the two, I'd have the one using the software purchase it, though it likely doesn't matter.

It can become an issue when someone requests tech support.  They may need to indicate who owns the software.  Will that person know to suggest which company it is?
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Expert Comment

by:CompProbSolv
ID: 41906052
I should add that my response was a technical one.  The accounting department may have a different view, which should prevail.
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Author Comment

by:mewtd
ID: 41906074
HI CompProbSolv, thanks for input.

Both companies are equally likely to be around, as the ability of each is dependent on the other. Unless the overall company does something radical and goes with an alternative company operating it, but as long as the operating company does a good job then they will be in business as long as the overall company wants them to be.

The operating company will be the company using the software, and requesting tech support. The overall company would not want to be involved every time there is a tech support question, they would want the operating company free reign to complete everything on that front.

But can the overall company pay for the software yet have it registered in the operating companies name, for ease of access to support etc?
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CompProbSolv earned 500 total points
ID: 41906501
Software companies with which I've dealt don't seem to care about whose name is on the check or credit card that pays for software.  The registration tends to follow either the name on the invoice or the name used when you register the software.

To get a more accurate answer, you'd have to check with each software company individually.

If the software were in the overall company's name, the operating company may have to know that when requesting support.  I've often been asked for the phone number of the software owner to identify the account.  I would expect that if you keep track of what is needed for each piece of software, it wouldn't be a problem.
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