We first published this post April 2019 but it is even more relevant today!
Jolts to industry such as the 2008 recession or Brexit cause individual businesses to start looking inward and re-examining their return on investment. Not surprisingly, one of the first areas examined are software licenses: are they offering enough value for money?
As a supplier of software for Design and Manufacturing, our maintenance contracts are scrutinised frequently and fortunately Alibre, our 3D CAD partner, is a market leader for value for money in this area. Alibre licences are owned and perpetual offering the flexibility demanded by businesses such as in 2008 recession and Brexit. Yes, there is a small penalty for missing years but nothing like our competitors. Maintenance is sold on the basis that the software continues to be developed and that our customer service remains a number one priority in the business
Some of our main competitors have changed their contracts in recent times to their own advantage making the real cost of ownership much more than anticipated.
Competitors have removed the option of skipping a year’s maintenance when not needed, or if a year is missed then when the customer decides to renew, he must pay for the missing year or years. There are some who now terminate licences on maintenance expiration, fully eliminating the opportunity to take a rest from the cost.
Other businesses are moving to cloud based subscription models which seem to have strong advantages at the point of sale (you only pay for what you use). What they do not say is that without subscription the licence stops working and the data can be made available to many! Subscription for CAD becomes a lock in, and the customer pays the full amount each year. In addition, the cloud space can be limited and with 3D CAD this requirement will never decrease, so there is a hidden future cost that is never mentioned!
Over a five-year period, the cost of ownership of Alibre compared to our main competitors is between 60 and 80% less.
We recently compared the cost of ownership four licenses of Alibre Design Expert for five years against the competition and the difference was Alibre Design Expert £14,200 competitor one £54,000 and competitor two £42,000.
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