SAM Software Procurement & Vendor Management 3

Question 1

An organization is consolidating software vendors to reduce complexity. Which metric BEST measures the success of vendor consolidation?

Accepted Answer

Reduction in vendor count combined with maintained service levels and cost savings

Answer

Successful vendor consolidation is measured by fewer vendors AND sustained service quality and cost savings, not just headcount reduction.

Question 2

Which contract clause protects an organization if a software vendor's product is found to infringe third-party intellectual property rights?

Accepted Answer

Indemnification clause

Answer

Indemnification clauses require the vendor to defend and compensate the customer for losses arising from IP infringement claims against the vendor's product.

Question 3

A vendor audit letter arrives claiming the organization is over-deployed on database licenses. What should the SAM team do FIRST?

Accepted Answer

Engage legal counsel and conduct an internal reconciliation before responding to the vendor

Answer

Conducting an independent internal audit first allows the organization to verify the vendor's claims and negotiate from an informed position.

Question 4

What is a 'true-up' provision in a software subscription agreement?

Accepted Answer

A periodic reconciliation where the customer pays for actual usage exceeding the contracted quantity

Answer

True-up provisions require customers to reconcile and pay for usage above contracted quantities at defined intervals, typically annually.

Question 5

A SAM professional is reviewing a vendor's End User License Agreement (EULA). Which provision would be MOST concerning from a data sovereignty perspective?

Accepted Answer

Vendor rights to store and process customer data in any country of its choosing

Answer

Data locality clauses that grant vendors unrestricted geographic flexibility may violate data residency regulations such as GDPR or sector-specific compliance requirements.

(SAM) Software Asset Management Practice Test

(SAM) Software Asset Management Practice Test

SAM Software Procurement & Vendor Management 3