subject: Hosted Erp Concerning The Subscription Rate About Isv Microsoft Dynamics [print this page] If you are an ISV in the Microsoft cloud dynamics and hosted ERP community, most likely dislike subscription rates. It is likely you think that with a subscription price-licensing contract you are not being completely paid for your significant expenditure and continuing operating fees.
Rose ASP offer shared and dedicated cloud-hosting services to maximize the value they deliver for their customers. They allow businesses to integrate ERP, CRM, and ISV partner solutions in a highly configurable and customizable format to meet the clients business process needs.
However, you are also a decent businessperson and you realize the market is changing. The customers in your market like subscription pricing. It is attractive to them for a number of reasons. RoseASP refers this as a paradigm shift. To you, it is a change in your business model. Youre being pressured to change from licensing your software for perpetuity and being paid for that all up front, to licensing on a monthly basis; month after month, after month. It is a big change.
There are many of difficulty with the alteration. One of the primaries is prices. Correctly costing your software package and to allow it to be desirable in the market and make it worthy to continue creating and helping your products with hosted ERP
and cloud dynamics is the main concern.
Leading Microsoft Dynamics cloud solution provider like Rose ASP are engaged in providing solution to hundreds of emerging middle market companies, large multinational organizations, and other Microsoft Partners to provide cost effective cloud-based solutions for businesses worldwide. No matter the size of your organization, they also support many customers in the different industries.
This approach to pricing is based primarily on the fact that you are changing from a perpetual license, to a monthly license, and based on RoseASP, of what is happening in the hosted ERP and Dynamics community.
Some minimum costs and highest pricing practices experienced by cloud dynamics are:
Let us look at an example:
Assumptions:
The ISV product used to be sold with a perpetual license for $5,000, plus an annual enhancement fee of 20%. In addition, this pricing represented a fair price for your product.
The lowest costing found in this scenario is dependent on a three-year payback:
Initial Purchase $ 5,000
First Year Enhancement 1,000
Second Year Enhancement 1,000
Third Year Enhancement 1,000
Total $ 8,000
Month to month (36 months) $ 222
The maximum pricing seen in this scenario is based on a payback of 18 months:
Initial Purchase $ 5,000
First Year Enhancement 1,000
Second Year Enhancement (1/2 year) 500
Total $6,500
Monthly (18 months) $ 361
In this instance, when you are requesting less than $222/month, you might be under costing your product. If you are wondering more than $361/month, then think you are overpricing your product.
According to Rose ASP, pricing in any situation is a difficult business exercise, requiring many considerations about your costs, your competition, your product, and your companys market position.
If you are not currently supplying subscription charges, you probably will be in the near future.
If you are already offering subscription pricing, do not be afraid to change your pricing. It is a new business model for you, and you can change your mind.
