Pain Point – Subscriptions
Purchase Price + 25% maintenance = repurchase every 4 years. This has been the traditional pricing model for mid-market ERP systems since the 1990’s. (Even low-end like QuickBooks and PeachTree or high-end Oracle/PeopleSoft/SAP use different models, but ongoing fees or re-purchase are required for functional software.)
Subscriptions bring a completely new approach to the pricing of software–effectively an expensable rental agreement. While the initial emotional response has often been to see the “purchase”/maintenance model as ownership, stopping payments prevents future upgrade or advancement of the software.
In reality, both models are priced to the advantage of the software company, but subscriptions can offer serious pricing advantages with the right selection. Software as a Service (SAAS) and other subscription options allow for a better way to plan and manage ERP expenses going forward.
Xcellerated Solutions can help with the selection of a system that gives you the best advantages for your investment–are you tired of:
If the idea of a non-equity based subscription bothers you, consider that with the right software selection, it’s not uncommon to see new subscriptions (on state-of-the-art software) priced similarly to the maintenance fees on traditional software! Software ownership is a myth–licensing has been the standard for decades–a “purchase” is a fee paid to gain access to licensing.
When users are added to a “purchase”, maintenance fees on the new user licenses are also accrued at 25% percent yearly cost. (For example, adding a $2,500 user license to an existing “purchase” will add $625 to the yearly maintenance fee–this is effectively a $50+ per-user subscription ON TOP of the “Purchase” price! The $2,500 is like a prepayment of 4 years of subscription before the subscription fee kicks in…)
Subscriptions may seem to be expensive and ominous, but they’re much simpler than the traditional ERP software “Purchase”/Maintenance model…
Xcellerated Solutions can help drill down on the real cost-of-ownership for existing and potential ERP systems. We can also help with the comparison of potential subscription options–a third-party perspective and help you avoid dangerous decisions with hidden pitfalls.
One software option stands out as a front-runner in the SAAS Market: Acumatica
Acumatica is the one truly native cloud ERP system that allows you to subscribe based on your business volume–and not based on the number of users accessing the system. Regardless of the size of the business, Acumatica has cost-effective options that allow you to add unlimited users to your workflows, reporting, and systems without worrying about adding to your subscription cost!
Subscriptions may seem to be expensive and ominous, but they’re much simpler than the traditional ERP software “Purchase”/Maintenance model…
Xcellerated Solutions has deep experience in MANY ERP systems, but recommends Acumatica for the best price and functionality available in a mid-market ERP system.
One of the biggest reasons business have stayed with the “Purchase” software model is because of the “On-Premise” location of the data. With most SAAS subscriptions, this has been a legitimate complaint. NetSuite is one example of an ERP system that makes it expensive (and arguably difficult) to gain access to data ownership (even when LEAVING for a different ERP software) at a database level.
Acumatica has a slightly different approach and allows you to retain explicit data ownership at a database level. In addition to providing an On-Premise or Private Cloud database option, they also even offer a Purchase/Maintenance option if desired! Acumatica’s flexibility on database deployement (SAAS, Private Cloud, or On-Premise) makes it unique.
Subscriptions may seem to be expensive and ominous, but they’re much simpler than the traditional ERP software “Purchase”/Maintenance model…
Xcellerated Solutions can sell (and assist with software selections) from many mid-market ERP vendors, but Acumatica is our preferred option for new software subscriptions or purchases.
Acumatica is unique in its ability to fully customize every aspect of your ERP system–you can even create additional screens, database entities, and other custom development. It’s part of the system–both with user-level screen customizability and deep C# .NET development (source code) options.
Many mid-market ERP software vendors (everything from Microsoft Dynamics to Salesforce) have various levels of customizability available, but there are often many limitations on how deep the customization can go without purchasing more expensive “developer” license. Acumatica is unique!
Subscriptions may seem to be expensive and ominous, but they’re much simpler than the traditional ERP software “Purchase”/Maintenance model…
Xcellerated Solutions can help with all aspects of system design, customization, and integration–for nearly any ERP system. (We recommend considering Acumatica as a strong option for licensing costs, functionality, and customizability.)
Many mid-market software packages (including SAAS Cloud solutions) have trouble with upgrades when any level of customization or integration exists. While this is predictable (and generally accepted), with the right software environment, the risks and trouble can be minimized dramatically.
Acumatica’s approach to a software development and customization environment makes upgrades uniquely simple and straightforward. The database environment allows for a parallel test environment (either in the SAAS cloud, in a private cloud, or in an on-premise environment.)
Subscriptions may seem to be expensive and ominous, but they’re much simpler than the traditional ERP software “Purchase”/Maintenance model…
Xcellerated Solutions can provide guidance and expert assistance with ERP system upgrades (both environmental and software versions) for many ERP systems, but we recommend Acumatica as a strong price, performance, and functionality option for future subscriptions.