Standard software maintenance fees

If the vendor is charging maintenance fees based on the list price of those modules, you'll likely be paying for software that you never implement. If you think you'll implement it later, buy it later. That will encourage the vendor to be sure you are successful with the modules that you do buy. If you are already a customer, your negotiating power may be diminished, but you still have options.

First, check whether you are using all of the modules you purchased. If not, consider canceling maintenance on the modules you are not using. Second, look hard at whether you are using all of the user seats that you originally purchased. Vendors will tell you if you exceed your user count but probably won't let you know if you have excess seats.

Finally, if you plan on buying additional software from the same vendor, see whether you can negotiate a better deal on your existing modules in exchange for buying additional modules. If your vendor is still not showing flexibility, consider whether more hardball tactics are warranted. Third party maintenance and service providers, offering lower fees, are one alternative. Canceling maintenance "going naked" for older or less critical systems might be another alternative, especially if you seldom use the help desk and are not planning to upgrade in the future.

Then there's always the nuclear option: looking to other software providers. For some applications, open source software might be an alternative, with maintenance either provided in-house or through a third party. Paying close attention to software maintenance agreements during the sales cycle, and monitoring their costs after the sale, can save companies significant dollars over the long run.

IT Spending in the Insurance Industry. IT Spending in the Retail Industry. Skip Navigation. Toggle navigation. Save my name, email, and website in this browser for the next time I comment. All Rights Reserved. Posted in Uncategorized. Cloud solutions charge monthly or annually, so maintenance is a part of the service they provide.

Because this is a recurring cost — it is critical that you understand how they charge for the use of the software so you can buy the right number of licenses. If you overbuy licenses, your costs will be high every year — which adds up significantly over the long term.

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