I would like to justify the purchase (or decision not to purchase) the Support and Maintenance contract that my supplier wants to sell with his software package.
The software package costs $X and it is a one time fee covering the licensing for use of the software. The support contract costs ($X * 20%) and it is a yearly fee which gets us support during business hours and free access to upgrades to the software we purchase.
("Patches" or "bug fixes" are included at no charge, whether we buy the support contract or not.)
Can anyone help me ask the right questions within my organization to determine our level of risk if we do *not* buy the support contract?
Thanks in advance for your help. Saving Changes...
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Anonymous
It is always advised to purchase the support contract for the 1st year when new applications are introduced. You are unaware of any risks associated with the softwa, or indeed the quality of the product until it is installed. After this intial year you can always cancel the contract should it not prove financially viable for the use you have given it. Saving Changes...
Mark Price PerryBusiness Driven PMO Evangelist| BOT InternationalOrlando, Fl, United States
Dear Jeff, you say that the vendor fixes bugs and releases patches either way and that the support package is more for user support and upgrades. What is the pay as you go support cost and cost to upgrade and are you likely to need that..? If the software package is complex and/or mission critical, then it wouldn’t be a bad decision to get the first year of support. Otherwise, you might be able to save your money – 20% annual support fees can add up quickly for an organization. Many software packages don’t require much by way of support, yet if the vendor can, they will usually try to sell a support package just to get the revenue. Ask the vendor to give you references for customers that both have the support plan and do not have the support plan. After a few discussions, you will have your answer. Good luck. – Mark Perry, VP of Customer Care, BOT International Saving Changes...
What's the alternative is a good approach in this situation as Service Level Agreements are like insurance policies that cover unknown risk so bringing an element of fear to the discussion table is not a bad option as it allows you to discuss worst case scenarios and whether you have a Business Continuity Plan in place. Then the purchase of a Service Level Agreement will not seem like such a big thing as will become a recurrent cost in the annual budget. Also look to see if you can get a discount of the first year Service Level Agreement as this may make it easier to sell to your organisation. Saving Changes...
