I have been through this with a couple of customers and the same ERP vendor. What I can tell you is that it all depends on how good a negotiator you are. One customer negotiated down from $850k to $135K the first time around, and then down to $30k the second time. Each time they included more user licenses. They have not upgraded the software nor started support during any of these hardware upgrades. They are now starting this process for the third time. We'll see how it goes, it's an entirely different staff.

Wayne Johnston
Integrity Technology, LLC


On Nov 6, 2008, at 12:00 PM, midrange-nontech-request@xxxxxxxxxxxx wrote:

----------------------------------------------------------------------

message: 1
date: Wed, 5 Nov 2008 19:31:39 -0600
from: macwheel99@xxxxxxxxxx
subject: Transfer Software License

---------- Forwarded Message -----------
From: "Al Macintyre" at work e-mail
To: "Al at home" e-mail
Subject: Transfer Software License

IBM?regularly releases new & improved hardware & operating system versions.? Vast numbers of?IBM customers want to stay current on the latest & greatest features, but the software, that we run on the IBM systems, sometimes has to get some upgrade to run properly on the new IBM?stuff, so it is not unusual for the software provider to charge some fee for that upgrade service.?That fee is?customarily a few hundred $ to $ 1 k max, because, after all, they are doing same service for thousands of customers on the same upgrade path. It is not like they have to tailor a solution for each customer.

?

For those customers paid up on tech support from the ERP company, that typically can cost $ XX k a year, such an upgrade service is sometimes free covered.

In our situation, we are still on the same IBM platform as years ago, but our company got new owners, rearranged what hardware at what offices, and new name of company.? Our ERP company wants a hunk of $ to make this license transfer "legal" to the current name & address of where our AS/400 is located.

?

Is there any industry standard for such $ amount, documented where I can give it to senior management?

-

Al Macintyre

------- End of Forwarded Message -------




------------------------------

message: 2
date: Wed, 5 Nov 2008 20:07:55 -0600
from: "Paul Nelson" <nelsonp@xxxxxxxxxxxxx>
subject: RE: Transfer Software License

Mac,

One of my clients is running version 4.05 of the software from your ERP
company. They desperately needed a new machine. They didn't want support,
they didn't want to upgrade the latest version, they didn't want anything
from the software company. All they needed was a new license key.

The head of sales for that company got involved, and instead of a large 5
figure charge, my client negotiated the price down to about $6K. Everybody
is happy, especially my client. His month end processing time went from 6
hours to 28 minutes.
The increased speed was worth the 6 grand.

If you want the name of the sales guy for the software company, contact me
off line.

Paul Nelson
Office 512-392-2577
Cell 708-670-6978
nelsonp@xxxxxxxxxxxxx


-----Original Message-----
From: midrange-nontech-bounces@xxxxxxxxxxxx
[mailto:midrange-nontech-bounces@xxxxxxxxxxxx] On Behalf Of
macwheel99@xxxxxxxxxx
Sent: Wednesday, November 05, 2008 7:32 PM
To: midrange-nontech@xxxxxxxxxxxx
Subject: Transfer Software License

---------- Forwarded Message -----------
From: "Al Macintyre" at work e-mail
To: "Al at home" e-mail
Subject: Transfer Software License

IBM?regularly releases new & improved hardware & operating system versions.?
Vast numbers of?IBM customers want to stay current on the latest & greatest
features, but the software, that we run on the IBM systems, sometimes has to
get some upgrade to run properly on the new IBM?stuff, so it is not unusual
for the software provider to charge some fee for that upgrade service.?That
fee is?customarily a few hundred $ to $ 1 k max, because, after all, they
are doing same service for thousands of customers on the same upgrade path.
It is not like they have to tailor a solution for each customer.

?

For those customers paid up on tech support from the ERP company, that
typically can cost $ XX k a year, such an upgrade service is sometimes free
covered.

In our situation, we are still on the same IBM platform as years ago, but
our company got new owners, rearranged what hardware at what offices, and
new name of company.? Our ERP company wants a hunk of $ to make this license
transfer "legal" to the current name & address of where our AS/400 is
located.

?

Is there any industry standard for such $ amount, documented where I can
give it to senior management?

-

Al Macintyre

------- End of Forwarded Message -------


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------------------------------

message: 3
date: Thu, 6 Nov 2008 08:58:45 -0600
from: smorrison@xxxxxxxxxxxxxxxxxxx
subject: Re: Transfer Software License

I'm not aware of any standard type of fee for this transaction, but I
think we have all read stories of software companies losing customers to a
competitor because of these upgrade fees.

I know we have changed software here simply because of maintenance fees.
It was cheaper for us to replace one small package here, than it was to
pay the upgrade fee demanded when we upgraded our system a few years ago.

Steve

Steven Morrison
Fidelity Express





macwheel99@xxxxxxxxxx
Sent by: midrange-nontech-bounces@xxxxxxxxxxxx
11/05/2008 07:48 PM
Please respond to
Non-Technical Discussion about the AS400 / iSeries
<midrange-nontech@xxxxxxxxxxxx>


To
midrange-nontech@xxxxxxxxxxxx
cc

Subject
Transfer Software License






---------- Forwarded Message -----------
From: "Al Macintyre" at work e-mail
To: "Al at home" e-mail
Subject: Transfer Software License

IBM regularly releases new & improved hardware & operating system
versions. Vast numbers of IBM customers want to stay current on the
latest & greatest features, but the software, that we run on the IBM
systems, sometimes has to get some upgrade to run properly on the new
IBM stuff, so it is not unusual for the software provider to charge some
fee for that upgrade service. That fee is customarily a few hundred $ to $
1 k max, because, after all, they are doing same service for thousands of
customers on the same upgrade path. It is not like they have to tailor a
solution for each customer.



For those customers paid up on tech support from the ERP company, that
typically can cost $ XX k a year, such an upgrade service is sometimes
free covered.

In our situation, we are still on the same IBM platform as years ago, but
our company got new owners, rearranged what hardware at what offices, and
new name of company. Our ERP company wants a hunk of $ to make this
license transfer "legal" to the current name & address of where our AS/400
is located.



Is there any industry standard for such $ amount, documented where I can
give it to senior management?

-

Al Macintyre

------- End of Forwarded Message -------


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