Packaged Software Licensing Costs

Determine the licensing cost for additional users. The licensing cost will sometimes increase exponentially when there is modest increase in the number of users. The additional cost is for the additional licenses themselves and the annual maintenance cost. The fact that you need more user licenses is good if it means that your business is growing. But many companies essentially find themselves working for the software vendor because the profits derived from the increased business volume do not offset the additional cost of the software.

The bottom line is know you current and expected future costs when you select software package.

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