How to make the best PLM software license decision
Complete control: PLM software perpetual license
Most PLM vendors sell perpetual licenses, with (usually optional) maintenance, support
and update services. This traditional model serves most companies well: the per
license cost over time is the lowest of any alternative, and you have the most control over system
configuration, data security, and scheduling your backups, upgrades and user training.
The downside is that you'll need to be comfortable installing and
maintaining software on your own computers. It helps to purchase
software specifically designed for low IT maintenance: simple
installation, client-server architecture with no web server
requirements, mainstream database technology, client update detection &
download via the server, built-in data export
capabilities.
Bottom line: you're in complete control of your PLM data at the lowest
long-term cost. Even if you choose to stop paying maintenance,
your current PLM system is still operational and your product data continues to be fully available.
Letting someone else do it:
PLM ASP / PLM on demand / PLM SaaS / hosted PLM
An application service provider (ASP) allows you to rent, rather than
buy, your PLM software as a service ("SaaS"). While so-called "on-demand PLM"
may significantly reduce your
up-front cost, the PLM hosting model suffers from a number of drawbacks:
- Your company's mission-critical data is not on site. This raises two critical
questions:
- How much do you know about the access security, backup process, operations skill,
disaster recovery procedures, employee training, and financial stability of your PLM ASP?
- What happens to your team's productivity if your Internet connection or PLM ASP
goes down?
- An availability guarantee reflects the ASP
vendor's capabilities, not your needs. A 99.5% up-time
guarantee allows the vendor system failures of over 40 hours each year
without penalty. Your own systems may operate at
"four nines" (99.99%) up-time or better.
- Performance is limited by your Internet connection's available bit rate and utilization,
your PLM vendor's available bit rate and utilization, the load on their datacenter
computers, and the systems selected for the datacenter. If you aren't happy with
the system performance, upgrading (if offered) will require more analysis and negotiating.
There's no guarantee that you'll get the performance you need if your requirements
exceed the vendor's abilities.
- A PLM ASP solution typically implements a one size fits most approach,
and is much more limited in its configurability.
- There may be additional charges for exceeding contract limits for data storage,
processing time, or connection bandwidth.
- Upgrades and service downtimes are scheduled for the vendor's convenience, not yours.
Except during project "crunch time", this may not be a significant issue
if your team observes the typical workweek (it's a good idea to select a PLM ASP
in your time zone).
- In many ASP systems, all clients share a common code base, so often
you can't delay or
skip an upgrade. Whether you're in the middle of a time-critical project or simply
satisfied with your current software, you'll still be getting your new upgrade (and
possibly re-training, data conversion, and new bugs) with everyone else.
- If you decide that you're not happy with your PLM ASP, you may not receive much
support moving your data to a replacement
PLM system.
In general, you'll want to anticipate all of the ways the PLM application service
provider could fail, and make appropriate contingency plans.
The affordable compromise: PLM subscription license
A subscription license works just like a magazine subscription, where you can buy
for any number of users, and can choose to stop at the end of the subscription period.
It's a practical, inexpensive way to get started with PLM:
- You get the operational benefits of a perpetual PLM license: in-house control of
your critical product data with the high performance and reliability of on-site
operation.
- You'll also get the financial benefits of an ASP PLM solution, since
up-front costs
are significantly reduced compared to with perpetual licensing.
Compared to on-demand PLM, a subscription license is generally less expensive per
user since you're not paying for your PLM supplier's datacenter, computers, bandwidth
and IT staffing.
Unlike an ASP, a subscription license may allow you to convert to perpetual licenses
after a certain period ("rent to own"). In many ways, a subscription offers
the advantages of leasing without the hassle of applying for credit financing.
Try
PDXpert PLM software now, absolutely free!
PDXpert PLM is uniquely crafted to meet the needs of growing companies, with
both a comprehensive set of features and a simple evaluation and purchase process.
We offer both perpetual and subscription licenses, which let you configure the software
to your exact needs. You have complete control over performance, storage costs,
maintenance and service interruptions, and - most important - your critical product
data.
Our perpetual license is the most economical solution, and allows you to own all
of the advantages of PLM for as little as US$999. If you wish to avoid the up-front
costs of a perpetual license, our subscription license is an affordable alternative
that's actually less expensive than on-demand PLM solutions.
- Free, fully-functional evaluation software download
- Unlimited time to install and configure the test environment
- Determine the number of users during evaluation
- Immediate use of test data upon purchase of production license
- Published pricing and volume discounts prevent invoicing surprises
- Flexible licensing accommodates your budget priorities: cost-effective perpetual
(with maintenance and support optional) or affordable all-inclusive subscription
licenses
We invite you to:
Download a free copy of PDXpert PLM
evaluation software now simply by
registering
080323.2050