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From vendor point of view it’s a fair strategy to get a customer with low front-end cost and get the major chunk of revenue through post implementation services. HP inkjet printers for retail home use are a good Example where the cost of the printer is equal to the cost of four print cartridges. Therefore the customer should detail out the total cost of ownership with the Vendor.
Level of support vs. cost:
Checkout the various levels of support and the cost attached to it. While the ‘Basic’ services cost is very low, the only worthy option may turn out to be ‘gold’ support, which is found to be 5 times that of ‘basic’ support package.
Pricing for delivering change controls
Check-out the development charges and agree for committed pricing for a period of next 2-3 years.
Expected set of changes over 2-3 year horizon
One should do an internal study of how much could be the extent of changes required over a horizon of 2-3 years. If the customization in the given system is costly, this will help to understand the cost impact.
Sharing of Source Code:
A vendor may hand-over the source code of the application to allow customer to make changes, OR it may insist on monopoly on any changes to be done on the system. The later part surely binds the customer to the Vendor, a situation which should be avoided.
PLEASE REFER COMMERCIAL EVALUATION MATRIX Execution-MiHPractice Tool to enable an effective COMMERCIAL & CONTRACTUAL Evaluation for a tool/solution provider.
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