A volume licensing agreement refers to a contract between a software publisher and a corporate entity, institution or organization for the use of software products. This type of agreement allows the organization to obtain software at a discounted price and enables the software publisher to enjoy stability in revenue flow. In the Philippines, a volume licensing agreement is commonly referred to as “VLA” or “NI”.
NI or “Nationwide Initiative” is a program led and implemented by the Department of Information and Communications Technology (DICT) to provide Government Agencies and Local Government Units (LGUs) access to the latest software technologies. Under this initiative, the Philippine Government entities are encouraged to use licensed software versions to improve their technology`s security, efficiency, and productivity.
Aside from government agencies, private entities can also benefit from a volume licensing agreement. Companies of all sizes, from small businesses to large corporations, can enter into a VLA with software publishers to secure discounted pricing, simplified licensing and maintenance, and improved software management.
To enter into a VLA, organizations must meet certain criteria. For instance, they must be a legal entity with a valid business registration with the government, and they must have at least five employees. Moreover, the organization must be able to commit to purchasing a certain number of licenses within a given timeframe, usually at least 20 licenses.
Volume licensing agreements are advantageous in several ways. They provide organizations with a cost-effective means of obtaining the necessary software licenses for their operations. They also help simplify license management, eliminating the need to purchase and manage individual licenses for each device. Additionally, VLAs provide organizations with access to the latest software updates and upgrades to enhance security and improve productivity.
In conclusion, a volume licensing agreement offers organizations several benefits. It provides access to the latest software products, simplifies software management, and offers cost savings. Companies should consider negotiating a VLA with software publishers to take advantage of these benefits. For government agencies and LGUs in the Philippines, joining the NI program is an excellent way to obtain licensed software versions and improve their technology`s security, efficiency, and productivity.
