Re: Vendor package pricing

[Gerald Magnuson <gmagqcy.midrange@xxxxxxxxx>]

... and, have we mentioned those vendors that claim...
"This is a new _VERSION_ of the software, not covered under normal
maintenance, so please pay us an additional $$$$ for a UPGRADE FEE"



On Thu, Aug 24, 2017 at 10:47 AM, Jim Hawkins <jhawkins@xxxxxxxxxxxx> wrote:

> 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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