How do you value your enterprise software maintenance?

1 Business impact

The first factor to consider is how your enterprise software affects your business goals and processes. How critical is the software for your daily operations, customer satisfaction, and revenue generation? How much downtime, errors, or inefficiencies can you tolerate? How much value do you get from the new features and enhancements that the maintenance provides? The higher the business impact of your software, the more you should value its maintenance and allocate sufficient resources and budget for it.

2 Maintenance model

The second factor to consider is the maintenance model that you use or choose for your enterprise software. There are different types of maintenance models, such as annual contracts, pay-per-incident, subscription-based, or self-service. Each model has its own advantages and disadvantages, depending on your needs, preferences, and expectations. For example, annual contracts can offer predictable costs and guaranteed service levels, but they can also lock you in with a vendor and limit your flexibility. Pay-per-incident can offer more control and flexibility, but they can also incur higher costs and lower quality. Subscription-based models can offer access to the latest features and updates, but they can also require constant payments and adjustments. Self-service models can offer more autonomy and customization, but they can also require more skills and resources. You should value your maintenance based on the model that best suits your software and business needs.

3 Maintenance costs

The third factor to consider is the maintenance costs that you incur or expect to incur for your enterprise software. Maintenance costs can include direct costs, such as fees, licenses, and labor, and indirect costs, such as downtime, lost productivity, and opportunity costs. You should calculate your total cost of ownership (TCO) for your software, which includes the initial acquisition costs and the ongoing maintenance costs. You should also compare your TCO with the return on investment (ROI) that you get from your software, which includes the benefits, savings, and revenues that it generates. You should value your maintenance based on the balance between your TCO and ROI, and optimize your maintenance costs to maximize your value.

4 Maintenance quality

The fourth factor to consider is the maintenance quality that you receive or expect to receive for your enterprise software. Maintenance quality can include aspects such as timeliness, responsiveness, accuracy, completeness, and satisfaction. You should measure and monitor your maintenance quality using key performance indicators (KPIs), such as resolution time, service level agreement (SLA) compliance, defect rate, customer feedback, and net promoter score (NPS). You should also benchmark your maintenance quality against industry standards and best practices, and identify areas for improvement. You should value your maintenance based on the quality that you receive and demand, and ensure that your maintenance quality meets or exceeds your expectations.

5 Maintenance strategy

The fifth factor to consider is the maintenance strategy that you adopt or plan to adopt for your enterprise software. Maintenance strategy can include elements such as prioritization, frequency, scope, communication, and evaluation. You should define and document your maintenance strategy based on your business objectives, software requirements, maintenance model, maintenance costs, and maintenance quality. You should also align and communicate your maintenance strategy with your stakeholders, such as your software vendor, your internal IT team, and your end users. You should value your maintenance based on the strategy that you implement and follow, and review and update your maintenance strategy as needed.

6 Maintenance value

The sixth and final factor to consider is the maintenance value that you derive or expect to derive from your enterprise software. Maintenance value can include outcomes such as improved performance, enhanced functionality, increased security, reduced risk, and higher satisfaction. You should quantify and communicate your maintenance value using metrics, such as availability, usability, functionality, security, and satisfaction. You should also leverage and showcase your maintenance value to your stakeholders, such as your customers, partners, and investors. You should value your maintenance based on the value that you create and deliver, and strive to increase your maintenance value over time.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?