Software Maintenance Agreement Price


A recent forrester survey of 215 business process and application professionals showed that maintenance costs were still too high. The result was not surprising. “We`re hearing a lot more maintenance complaints than ever before,” Wang says of Forrester`s customers. In our experience at SoftwareONE, suppliers are very focused on achieving as much revenue as possible. We also know that customers, since they have more SKUs and expenses, are often fueled by increased discounts. If customers remove SKUs or reduce expenses, discount levels could decrease, meaning that the customer could pay the same or more and that their maintenance remains the same or more. In general, maintenance is set as a percentage of new licence fees (z.B 15%) and this percentage is generally flat. A second category of customers (calculated from 15 to 17 percent) is the one that plans to stay with the product and make upgrades, as well as get basic support. And a third category (full maintenance rates loaded) is one that seeks high-level support and all bells and whistles – next-generation service software applications (SaaS) and service-oriented architecture (SOA). Always try to negotiate contract renewals with new acquisitions (if you need them). Your Account Manager is more likely to offer maintenance contract discounts if there is sufficient overall supply. But don`t let yourself buy products you don`t need or don`t use simply because they are sucked in on `special offer`! Collecting or recovering software is the act of reducing the consumption of software licenses in an organization so that they can be reused if necessary. The new software crop can help reduce licensing and maintenance costs, and includes four basic steps.

Then there is always the nuclear option: look at other software providers. For some applications, open source software can be an alternative, with maintenance either in-house or through a third party. As we mentioned in a previous article, the cost of the software can be divided into 3 components (software license, software maintenance and implementation services), if you want to implement a SaaS or Cloud solution, you also have a Service Level Agreement (SLA). For this contribution, we will focus on the costs of maintaining the software. All updates – including troubleshooting updates, secondary release updates or updates to major releases – on products and documentation licensed by the licensee are provided on request or after publication by axaio. Axaio`s policy is to use the Internet for software distribution. Users who need media are responsible for both media transportation and shipping costs. All product updates are made available to the licensee during the duration of this contract, at no additional cost, with the number one.

Also, you don`t buy software you don`t need, even if the provider offers a huge discount on additional modules. There`s no such thing as a free lunch. If the vendor calculates a maintenance fee based on the list price of these modules, you probably pay for software that you can never implement. If you think you`ll implement it later, buy it later. This will encourage the supplier to be sure that you will succeed with the modules you buy. Practical Tips If you are concerned about high software maintenance costs, there are several steps you can take to keep costs online. Software vendors understand this and, as new sales remain difficult to achieve, they focus on increasing revenue from their maintenance activities. But more importantly, suppliers increase maintenance revenue because they can.

Implementing a company-wide system is a daunting task for most businesses.

Posted Thursday, December 17th, 2020 at 8:35 am
Filed Under Category: Uncategorized
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