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February 07, 2008

ERP Licensing and Maintenance Train Wreck Approaching

CIOs Sick of Enterprise Software Pricing, Forrester Finds

Licensing and maintenance costs have always been confusing - at PeopleSoft, we had to throw our hands up and admit that our own product could not handle our pricing model (we had to link to an Excel sheet - sheesh!). I agree with Matt here - the increase in complexity is a sign of a sector in increasing desperation.

One other thing - what do these companies charge maintenance for when they won't support any module that is customized? The client is forced to buy a maintenance contract, but usually can't get any support since most software is not used "out of the box." I'm not arguing with the fact that it's virtually impossible for an ERP support crew to support code that they (the vendor) did not write. I do argue with the fact that companies are forced to pay for maintenance contracts that they can't use. It makes us all look bad.

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