Re: Vendor package pricing

What I find frustrating is the pricing of maintenance contracts.

A previous employer was paying $12k for our plant (we were one of at least
5
facilities in the company using this software package, so I am guessing
that
was at least $60K each year). Unfortunately, by time I left the company,
there had been no updates to the software in over 10 years by the supplier.
I never even saw a PTF for software in all of the time I worked at the
company. Why was the maintenance so high (we were moving from this package
to a wintel server/client system that users loved/hated. They loved that it
was GUI hated the speed -ran at a speed a snail would call slow-)?

Where I currently work our ERP vendor has said "no matter what, your
maintenance will increase 6% (compounded) annually. Not to mention that
most
of the enhancements have little or no value to us. Never mind that the
inflation rate is under 3% on average. Don't get that structure. I get
inflation means it cost more to do the same thing, but double or triple the
inflation rate-annually? Not sure I am seeing the value of the annual
significant increase in maintenance cost

The more you charge for maintenance 1) the more likely I am to call you
rather than try to figure it out myself 2)The more I might be open to a
third party maintenance contract if I don't care about PTF and upgrades or
even entertain a different package.

I have worked with vendors that charge a token amount (like under $100) for
annual maintenance. I see that as more to keep upgrades coming (and they
did) and often I never had to call them once we were operational. But a
vendor charging 5 figures for annual maintenance and no enhancements--I am
perceiving little value for my money and have no hesitation to call with
questions.

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