What Legal Experts Think About the Binadox Solution
We’ve interviewed a number of in-house general counsels and attorneys and asked them what threats EULAs and ToS may pose to companies and whether the Binadox solution can help their firms avoid costly violations.
Some legal experts we interviewed consider an EULA a boilerplate few firms care about, because, in their opinion, only volume license agreements tend to be audited. Still, many experts believe it’s important to know the terms of license agreements, since each time you do not read the agreement, there is a risk of non-compliance due to not following the proper procedures or licensing restrictions. Whenever there is non-compliance, the vendor gets an opportunity to fine you for the improper use, which could cost the company hundreds of thousands if not millions of dollars. That is why many legal experts we interviewed consider it very useful to have EULAs and TOS at hand. According to the legal attorneys we talked to, though there are many SAM and ITAM tools keeping inventories of license agreements, they have not heard of any tool that could parse and analyze license agreements the way Binadox does.
Another added value the Binadox solution provides, in the in-house general counsels’ and attorneys’ view, is SaaS discovery. Today more and more applications are moving to the cloud. Most experts consider Terms of Services a new model of licensing replacing End User License Agreements. In this regard, the major opinion is that the main threat ToS may pose is a violation of information security. A breach of data security, especially that involving personal data, is the biggest risk for the company endangering not only its finances and/or reputation but its existence altogether. Some legal experts placed emphasis on three provisions of ToS which require special attention, such as data residency, privacy, and exit terms. A more complete understanding of these issues can be gained from one of our earlier posts. And highlighting the most critical provisions of license agreements is exactly what Binadox does.
According to the legal experts interviewed, Binadox is also helpful in identifying shadow IT as it intercepts all installation and subscription events in real time and can send notifications so that procurement and legal department people could further investigate those events and take measures. Furthermore, Binadox monitors software usage and generates software usage reports which also help identify shadow IT among other things.
The legal experts we interviewed got interested in the proactive approach Binadox provides as it’s of crucial importance for license compliance. SaaS discovery and the license terms analyzer were called the key differentiators of Binadox that constitute the solution’s competitive advantages and ensure it good prospects on the ITAM market.