What a system actually costs.
WHAT THE VISIBLE COST IS
Licences or subscriptions.
WHAT THE REST CONSISTS OF
Implementation and configuration Data migration Integration with other systems Training Customisation Hardware, where applicable Ongoing support and maintenance Internal staff time Upgrades
WHAT PROPORTION THE LICENCE FREQUENTLY IS
A minority of the total.
WHAT IMPLEMENTATION TYPICALLY COSTS
A multiple of the first year's licence, for substantial systems.
WHAT INTERNAL TIME COSTS
More than expected, and it is rarely counted.
WHY THAT MATTERS
A project appearing affordable becomes unaffordable when staff cannot do their jobs.
WHAT TO BUDGET FOR OVER FIVE YEARS
Subscription, support, upgrades, and further configuration.
WHAT CURRENCY EXPOSURE MEANS HERE
Most substantial systems are priced in foreign currency.
WHAT THAT PRODUCES
Costs rising with the exchange rate, independently of usage.
WHAT TO ESTABLISH
Whether pricing is fixed, and in what currency.
WHAT PER-USER PRICING MEANS AS YOU GROW
Cost rising with headcount, regardless of value.
WHAT TO MODEL
Cost at your expected size in three years.
WHAT TO NEGOTIATE
Multi-year pricing, and what happens on renewal.
