Rhode Island spends hundreds of millions of dollars annually on government information technology, yet too often, taxpayers have little insight into whether those dollars are buying innovation or inefficiency. Now that the legislative session is underway, state leaders have an opportunity to modernize government while ensuring technology spending truly works for Rhode Islanders.
One often overlooked way to achieve those goals is by taking a closer look at the licensing practices of Rhode Island’s software vendors.
Across the country, policymakers are responding to a growing concern that some large legacy software vendors lock government customers into expensive, inflexible licensing agreements – a practice commonly known as “vendor lock-in.” These licensing terms can make it difficult for state agencies to switch providers, migrate to the cloud, or avoid paying for software bundles they neither want nor need.
Without clear guardrails, procurement experts warn that states may be significantly overpaying for outdated software or paying twice for the same functionality when modernizing legacy systems. Over time, these costs add up, quietly draining public resources that could otherwise be invested in services Rhode Islanders rely on.
Restrictive licensing practices can also increase cybersecurity risks. When the exit is difficult and the choice is limited, security too often becomes an exposure.
In 2024, Rhode Island experienced a major cyberattack on its RIBridges system, impacting more than 600,000 residents.
That is why fair software licensing legislation has gained momentum nationwide. Six states, including Missouri, Colorado, New Hampshire, Illinois, Ohio and Indiana, have already enacted protections. Similar legislation is now pending in multiple states. The bill has been introduced in Rhode Island for the past three legislative sessions.
The Rhode Island bill has been straightforward and narrowly tailored. It would protect a state agency’s right to run licensed software on the infrastructure that best fits mission needs and budget constraints, prevents unfair licensing terms and allows the state government to compare alternatives without fear of retaliation or punitive audits.
For Rhode Island, the benefits are clear. Fair licensing standards could save the state millions of dollars each year, give agencies greater control over their technology choices, and reduce cybersecurity risk by enabling faster upgrades and modernization. Just as importantly, reformed procurement standards restore competition in a market that has grown increasingly opaque and one-sided.
These are not radical ideas. They are common-sense market rules that put governments back in the driver’s seat. When states adopt them, prices become more transparent, cloud migrations move faster, and vendors compete on performance and value, not contractual lock-in.
This session, Rhode Island has an opportunity to lead on a simple principle: public dollars should buy performance, flexibility and security, not lock-in. Fair software licensing protections put residents, not restrictive contracts, at the center of technology decisions.
Ryan Triplette is the executive director of the North American-based Coalition for Fair Software Licensing.
