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The Cost of PLM

UserPost

9:32 am
May 5, 2009


admin

Admin

posts 19

1

On our web page The Cost of PLM we list various elements that contribute to the overall cost of evaluating, implementing and operating a PLM solution. We also state that we found the average cost to be somewhere between $4,000 and $6,000 per user, dependent on functionality and number of users. What is your experience? How much did your PLM solution cost per user? What were the main contributing factors and their percentage of the overall costs?

12:36 pm
July 16, 2009


GC6harris

New Member

Havre de Grace, MD

posts 2

2

I found the stated percentage cost of Software maintenance confusing. I assume your percentage was based on the total cost of implementation, not the percentage of the software cost alone. I think it may need an asterisk or somthing to also note what the consumer might expect as an ongoing cost average (like 15% of the total software investment per year)

1:30 pm
July 16, 2009


admin

Admin

posts 19

3

The above-stated assumption is correct. The percentage indicated for software maintenance and all other percentages are based on the overall cost of implementation (please refer to note 1) at the bottom of the table).

The annual recurring software maintenance fee or cost is generally around 20% of the initial software license cost or investment. This is true for most commercially available systems today that are sold under traditional license agreements. More recently other software licensing models have emerged, such as PLM On-Demand or Open Source PLM, where the software is often provided at no initial costs and only a monthly or annual usage or maintenance fee has to be paid. Detailed commercial information about various systems is available in our PLM Systems section.



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