"Our Take"

(Past Editions by: Date, Title, Topic)

About "Our Take"
"Our Take" is a collection of daily vignettes covering a wide range of CRM topics. It's an attempt to add our own spin to the world of CRM. We will use the column to share our perspectives, opinions, epiphanies, web nuggets, or quite frankly anything that moves us. Get ready to expect the unexpected. And, don't be shy about sharing your thoughts.

10/18/06 - Maintenance Fees on the Rise - Part II
Yesterday, I shared Gartner's prognostications on software maintenance fees. In short, they believe annual maintenance fees are on the rise and could go up to 30% of software license prices by 2010.

From my perspective, companies purchasing CRM solutions have leverage to negotiate favorable maintenance fees due to adequate competition so I don't see that happening for many organizations. However, I believe Gartner doesn't make risky predictions that don't have a high probability of coming true. I think I know why.

In another discussion, one analyst was quoted as saying, "If you don't stay up on (Oracle, Siebel) upgrades, you could end up in a very scary place." So unless you have negotiated fixed maintenance fees for your enterprise level CRM solutions, you might need to add a few more bucks to your budget. Do you sense a rise in maintenance fees?

Gary Lemke, Publisher
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