System Contracts: Add Specific Performance Guarantees To Avoid Problems
One impact of software “aggregators” buying system providers is that price competition has decreased, so the prices paid have increased. A more ominous impact is that the contracts of the survivors now offer fewer protections to distributors - not that they really offered many before they bulked up on rivals.
Here are some of the issues that must be addressed in any system contract that protects a distributor. Addressing them involves adding specific performance guarantees to the vendor’s agreement.