The Cost of PLM
The overall cost of a PLM solution is comprised of several elements and dependent on a number of factors.
|Cost Element||Cost Type
||Cost Dependent On n|
|Software||One-time capital investment||30%|
|Software maintenance||Annual recurring expense||6%|
|Hardware||One-time capital investment||8%||
|Education and software selection
|Implementation services||One-time expense||25%|
|Data migration||One-time expense||5%|
|Post-go-live support||Annual recurring expense||5%||
1) Approximate share of total initial cost (one-time capital investments, first-year software maintenance, one-time expenses and initial post-go-live support)
Based on the different elements and dependencies it is obvious that the cost of a PLM solution can vary widely. We know of companies that have implemented PLM for a few users and with limited functionality for less than $10,000, but there are also companies that have implemented extensive PLM functionality for tens of thousands of users and have spent millions of dollars.
As a rule of thumb we have found in numerous projects that the initial cost for a complete PLM solution will generally be in the range of $4,000 to $6,000 per user (for capital investments and one-time expenses). Where in this range the overall cost falls depends largely on the number of users and the implemented functionality. The more users, the lower the cost per user, and the more extensive the functionality, the higher the cost per user.
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