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<p class="MsoNormal" style="margin-bottom:.2in;line-height:14.4pt"><span style="font-size:10.0pt;font-family:"Arial","sans-serif";color:black">Dear All, As we all continue to embrace Digital Home I thought I share a some background of software vendors. I
have been a software developer then an architect and now a salesman… Live it all</span><o:p></o:p></p>
<p class="MsoNormal" style="margin-bottom:.2in;line-height:14.4pt"><span style="font-size:10.0pt;font-family:"Arial","sans-serif";color:black">When providers contract with vendors, they expect certain products and services. This much is obvious. The issue presented
here arises as a result of all the distributing, bundling, packaging and rebadging of products.</span><o:p></o:p></p>
<p class="MsoNormal" style="margin-bottom:.2in;line-height:14.4pt"><span style="font-size:10.0pt;font-family:"Arial","sans-serif";color:black">Vendor A may offer Vendor B’s product alongside its own products. In this case, Vendor A is a distributor (and usually
a reseller) of Vendor B’s product. Typically this type of collaboration exists when the two products perform related tasks for the provider. Like ice and your favorite drink, each is good, but together they are great!</span><o:p></o:p></p>
<p class="MsoNormal" style="margin-bottom:.2in;line-height:14.4pt"><span style="font-size:10.0pt;font-family:"Arial","sans-serif";color:black">Vendor X may offer a product called “IndiaOpenEMR</span><span style="font-size:10.0pt;font-family:"Arial","sans-serif";color:#404040">”
that also has some type of label like, “powered by InsureWare” or something to that effect. This probably means Vendor X has InsureWare’s software embedded in its product, and the “powered by” refers to this fact. In this case, Vendor X is sublicensing technology
developed by InsureWare.</span><o:p></o:p></p>
<p class="MsoNormal" style="margin-bottom:.2in;line-height:14.4pt"><span style="font-size:10.0pt;font-family:"Arial","sans-serif";color:#404040">In each situation, the provider gets the package deal and the functionality it is seeking, which would not be possible
with only Vendor A or Vendor B in the first instance or with only Vendor X in the second.</span><o:p></o:p></p>
<p class="MsoNormal" style="margin-bottom:.2in;line-height:14.4pt"><span style="font-size:10.0pt;font-family:"Arial","sans-serif";color:#404040">So everyone wins, right? Hopefully, but maybe not.</span><o:p></o:p></p>
<p class="MsoNormal" style="margin-bottom:.2in;line-height:14.4pt"><span style="font-size:10.0pt;font-family:"Arial","sans-serif";color:#404040">When things go well and you have a great prime vendor that really steps up and fills that role, life is good. The
provider gets precisely what they signed up for. They have a single point of contact for resolution of problems with any of the products involved.</span><o:p></o:p></p>
<p class="MsoNormal" style="margin-bottom:.2in;line-height:14.4pt"><span style="font-size:10.0pt;font-family:"Arial","sans-serif";color:#404040">But what happens when things go wrong? Are the responsibilities and procedures clearly set out? Key contract components
that must be addressed fully by all vendors involved include support obligations, copyright / patent protection, indemnification, and liability provisions, to name a few.</span><o:p></o:p></p>
<p class="MsoNormal" style="margin-bottom:.2in;line-height:14.4pt"><span style="font-size:10.0pt;font-family:"Arial","sans-serif";color:#404040">How does the provider determine exactly what they are getting and precisely whom they are dealing with?</span><o:p></o:p></p>
<p class="MsoNormal" style="margin-bottom:.2in;line-height:14.4pt"><span style="font-size:10.0pt;font-family:"Arial","sans-serif";color:#404040">One simple way to determine the “who” part is to look for the warranty of ownership. Something like, “Vendor warrants
that it owns the software.” Once you find that section, really analyze it. It is probably not more than a sentence or two, three tops.</span><o:p></o:p></p>
<p class="MsoNormal" style="margin-bottom:.2in;line-height:14.4pt"><span style="font-size:10.0pt;font-family:"Arial","sans-serif";color:#404040">If the vendor warrants that it is the developer and sole owner of the technology being licensed, then you are dealing
with a single vendor and its products. This is the cleanest, most simple scenario.</span><o:p></o:p></p>
<p class="MsoNormal" style="margin-bottom:.2in;line-height:14.4pt"><span style="font-size:10.0pt;font-family:"Arial","sans-serif";color:#404040">(Quick sidebar here: it must be a warranty, not a representation. Warranties have certain protections and remedies
that representations do not.)</span><o:p></o:p></p>
<p class="MsoNormal" style="margin-bottom:.2in;line-height:14.4pt"><span style="font-size:10.0pt;font-family:"Arial","sans-serif";color:#404040">If the vendor warrants that it is the owner of the technology OR that it has the right to license it, that is your
red flag duct taped to a flashing light. This is not bad, but it means the product contains or is packaged with third-party software. You need to be aware of this and you must obtain certain crucial contract terms for your protection.</span><o:p></o:p></p>
<p class="MsoNormal" style="line-height:14.4pt"><span style="font-size:10.0pt;font-family:"Arial","sans-serif";color:#404040">The best-case scenario (keeping in mind that there is another vendor involved that is <i><span style="border:none windowtext 1.0pt;padding:0in">not</span></i> a
party to your agreement, which is the reason behind this article) is a warranty from the vendor that you are contracting with that it has warranties of ownership, operation, and error correction (for example) from the other vendor. This is critical because
it can then be used to back up the same warranties from your selected vendor to you.</span><o:p></o:p></p>
<p class="MsoNormal" style="margin-bottom:.2in;line-height:14.4pt"><span style="font-size:10.0pt;font-family:"Arial","sans-serif";color:#404040">The biggest warning flag you could ever encounter is where there is a disconnect in the protection(s) offered. If
the vendor warrants that “all software is great and works fine and they will fix everything, but this warranty does not apply to a certain line item or product,” then you have a problem. What happens if there is a failure with the excluded software?</span><o:p></o:p></p>
<p class="MsoNormal" style="margin-bottom:.2in;line-height:14.4pt"><span style="font-size:10.0pt;font-family:"Arial","sans-serif";color:#404040">If you have no answer while reviewing contract language, just imagine the discomfort you will feel if your system
is down and all indications point to the excluded product.</span><o:p></o:p></p>
<p class="MsoNormal" style="margin-bottom:.2in;line-height:14.4pt"><span style="font-size:10.0pt;font-family:"Arial","sans-serif";color:#404040">OK, stay with me here. All the legal stuff aside, what those in IT really want to know is what happens if there
is a problem with the products.</span><o:p></o:p></p>
<p class="MsoNormal" style="margin-bottom:.2in;line-height:14.4pt"><span style="font-size:10.0pt;font-family:"Arial","sans-serif";color:#404040">As stated before, with a solid prime vendor you are in good shape. But what about those unfortunate situations where
fingers get worn out from all the pointing?</span><o:p></o:p></p>
<p class="MsoNormal" style="margin-bottom:.2in;line-height:14.4pt"><span style="font-size:10.0pt;font-family:"Arial","sans-serif";color:#404040">To try and avoid heartburn later, fix the contract up front. Try this simple exercise. Remember connect the dots,
those partially finished pictures in coloring books with numbered dots? Connect them in numerical order and complete the picture! Give it a try with your software agreement.</span><o:p></o:p></p>
<p class="MsoNormal" style="margin-bottom:.2in;line-height:14.4pt"><span style="font-size:10.0pt;font-family:"Arial","sans-serif";color:#404040">If you have more than one vendor involved, just imagine a system crash, and then try to connect the dots to all
the vendors, especially the vendor behind the scenes. Do you have adequate warranty protection? Do procedures exist for escalating a software problem to the correct level at the vendor? Can you get to the vendor at all??</span><o:p></o:p></p>
<p class="MsoNormal" style="line-height:14.4pt"><span style="font-size:10.0pt;font-family:"Arial","sans-serif";color:#404040;border:none windowtext 1.0pt;padding:0in">Make clear</span><span style="font-size:10.0pt;font-family:"Arial","sans-serif";color:#404040"> for
each product included, or component thereof, which vendor is responsible for support, updates, fixes, etc.</span><o:p></o:p></p>
<p class="MsoNormal" style="line-height:14.4pt"><span style="font-size:10.0pt;font-family:"Arial","sans-serif";color:#404040"> </span><o:p></o:p></p>
<p class="MsoNormal" style="line-height:14.4pt"><span style="font-size:10.0pt;font-family:"Arial","sans-serif";color:#404040;border:none windowtext 1.0pt;padding:0in">Make certain</span><span style="font-size:10.0pt;font-family:"Arial","sans-serif";color:#404040"> that
you have contract pathways to obtain that service. Assume vendor A is first point of contact. When the problem ultimately is identified as residing in Vendor B’s product, then what? It may be that the responsibility remains with Vendor A, but it also may be
that Vendor A is only responsible for “Level 1 Support” and then you go to Vendor B for the difficult stuff. Ideally Vendor A stays involved and shepherds the issue through to resolution, sort of like a new car warranty. Inga’s Cadillac dealership did not
build the car, but when the car breaks down, you take it back to Inga’s to get it fixed. Inga’s then takes care of the work required and is backed up by the manufacturer.<br>
<br>
</span><o:p></o:p></p>
<p class="MsoNormal" style="margin-bottom:.2in;line-height:14.4pt"><span style="font-size:10.0pt;font-family:"Arial","sans-serif";color:#404040">Taking the car analogy a little further, in terms of your contracted vendors, while you may know who is in the driver’s
seat, you may not know who else is along for the ride. It could be an awesome two-seat Tesla roadster with two great vendors, or it could be the mud-covered SUV with a bunch of buddies all saying they work together just fine (and the driver is wearing really
dark shades.) Due diligence in contracting pays off, and lack of diligence can really sting you later.</span><o:p></o:p></p>
<p class="MsoNormal" style="margin-bottom:.2in;line-height:14.4pt"><span style="font-size:10.0pt;font-family:"Arial","sans-serif";color:#404040">Vendors, please make it clear. You know best what is going on. Put it right out there.</span><o:p></o:p></p>
<p class="MsoNormal" style="line-height:14.4pt"><span style="font-size:10.0pt;font-family:"Arial","sans-serif";color:#404040">In 2006 I lived in UK for 1 year working for a company called Cerner, I still remember a situation where an executive at a monster
hospital chain felt something had been “snuck in.” In reality it was not, but the impression stuck hard and fast in this executive’s mind and we had to face extra scrutiny for several years to follow. Kind of like a dog that gets whacked by something at one
of those birthday parties where twenty kids are running around screaming and things get zany and someone hands a whiffle ball bat to the kids for the piņata. Anyway, the dog gets whacked (accidentally, of course) and <i><span style="border:none windowtext 1.0pt;padding:0in">never</span></i> forgets
the kid that did it. Don’t be the kid with the bat!<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height:14.4pt"><o:p> </o:p></p>
<p class="MsoNormal" style="margin-bottom:.2in;line-height:14.4pt"><span style="font-size:10.0pt;font-family:"Arial","sans-serif";color:#404040">Tangential issue: get a warranty that states no other software is required, from your prime vendor or any other
vendor, for operation of the software products being licensed. If other software is required but not included, require a listing in the agreement of all such products. Failure of your prime vendor to include something on this list should mean the vendor has
to pony up and pay for it. That will bring all the fine details right to the top.</span><o:p></o:p></p>
<p class="MsoNormal" style="margin-bottom:.2in;line-height:14.4pt"><span style="font-size:10.0pt;font-family:"Arial","sans-serif";color:#404040">Finally, once you get everything above all set, make sure that all your hard work does not blow away in the wind
because a vendor subcontracts work or assigns the agreement to another vendor. Include provisions prohibiting assignment or subcontracting without the customer’s agreement. That way you know what you are getting, from whom you are getting it, and that things
will stay that way unless you agree otherwise.</span><o:p></o:p></p>
<p class="MsoNormal" style="margin-bottom:.2in;line-height:14.4pt"><span style="font-size:10.0pt;font-family:"Arial","sans-serif";color:#404040">Please take care in your interpretation of this article. I have been involved in countless good situations involving
multiple vendors and very happy customers. When the provider does get a good prime vendor that truly takes on its role, you win. No question it works well in the right situations. My point is to be diligent and try to avoid bad situations by at least having
good contract language on your side. The combination of a poorly performing vendor and weak or lousy contractual support will really ruin your day.</span><o:p></o:p></p>
<p class="MsoNormal" style="margin-bottom:.2in;line-height:14.4pt"><span style="font-size:10.0pt;font-family:"Arial","sans-serif";color:#404040">Big takeaways:</span><o:p></o:p></p>
<p class="MsoNormal" style="margin-left:26.25pt;text-indent:-.25in;line-height:18.0pt">
<span style="font-size:10.0pt;font-family:Symbol;color:#404040">·</span><span style="font-size:7.0pt;font-family:"Times New Roman","serif";color:#404040">
</span><span style="font-size:10.0pt;font-family:"Arial","sans-serif";color:#404040">Contract language, warranties, and obligations should be consistent as applied to all products and vendors involved, even if designated to a prime vendor. Watch for disconnects
in supporting language.</span><o:p></o:p></p>
<p class="MsoNormal" style="margin-left:26.25pt;text-indent:-.25in;line-height:18.0pt">
<span style="font-size:10.0pt;font-family:Symbol;color:#404040">·</span><span style="font-size:7.0pt;font-family:"Times New Roman","serif";color:#404040">
</span><span style="font-size:10.0pt;font-family:"Arial","sans-serif";color:#404040">The contract should map out clearly the support chain and obligations of the vendors involved, again, even if designated to a prime vendor.</span><o:p></o:p></p>
<p class="MsoNormal" style="margin-left:26.25pt;text-indent:-.25in;line-height:18.0pt">
<span style="font-size:10.0pt;font-family:Symbol;color:#404040">·</span><span style="font-size:7.0pt;font-family:"Times New Roman","serif";color:#404040">
</span><span style="font-size:10.0pt;font-family:"Arial","sans-serif";color:#404040">Require listing all software required for operation of the products being licensed and obligation for the vendor to provide whatever they failed to list.</span><o:p></o:p></p>
<p class="MsoNormal" style="margin-left:26.25pt;text-indent:-.25in;line-height:18.0pt">
<span style="font-size:10.0pt;font-family:Symbol;color:#404040">·</span><span style="font-size:7.0pt;font-family:"Times New Roman","serif";color:#404040">
</span><span style="font-size:10.0pt;font-family:"Arial","sans-serif";color:#404040">Prohibit assignment and subcontracting by the vendors without your consent.</span><o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial","sans-serif"">Just two cents!<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial","sans-serif""><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial","sans-serif"">Titus Ngeno<o:p></o:p></span></p>
<p class="MsoNormal"><o:p> </o:p></p>
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