Maintenance Software Pricing
Maintenance software pricing can be confusing. You don't want to pay more than you have to, but you also need to make sure your budget matches your needs.
Plus, the expense adds up to more than just the software’s price. You'll need to include startup training, integration services, data migration from legacy systems, hosting, and maintenance/support agreements.
What Do I Need to Know about Maintenance Software Pricing?
Typically, there are two ways to purchase software: subscription and licensing.
Subscription pricing is often referred to as Software as a Service, or “SaaS.” When you opt for SaaS, you’re renting the software, and you pay a monthly or yearly fee. This is a common option with many applications today—but it may not be the best one for you.
Licensing allows you to use the software (in practical terms, forever) for a one-time fee. Typically, you will also have the option of purchasing or renewing a yearly maintenance agreement that includes software updates, tech support, hosting services, and access to training. It’s usually charged as a percentage of the software’s original price.
What Are the Advantages to the Different Types of Maintenance Software Pricing?
Each maintenance software pricing method has advantages and disadvantages.
Subscription pricing is easier on cash flow up front and over the first 2-3 years. Plus, you may be able to purchase it without a formal procurement process (i.e., you're just signing up for a service). You also get to try out the product and the vendor without fully committing.
But subscription pricing has a higher total cost over the long term and leaves you vulnerable to price increases. You never own the software, so when you stop paying, you lose access.
Licensed pricing is less expensive over the long run than the never-ending subscription. Usually it’s a 2-3 year breakeven vs. SaaS pricing. You own the software after purchase. If your company’s budget gets tight one year and you don’t get your yearly allotment, you will still be able to use your software because you own the software license.
But license pricing has a higher upfront cost, which makes it challenging for organizations on tight budgets.
Find Out More
MPulse offers different maintenance software pricing to help more organizations discover the power of CMMS software, no matter what their size.