Author: Ethan Wilke

Key Takeaways

• A software license is a legally binding contract that details the rights and obligations of the CMMS owner (vendor) and end-user (you, the customer)
• Software license agreements outline the conditions under which to use the CMMS, including license terms and number of users or seats
• Understanding your CMMS software license agreement is critical to choosing the best CMMS for your operating environment

If you have ever installed a software program or created an account to use an online service, then you are likely already familiar with software license agreements. They are those lengthy documents that pop up and ask you to agree to certain terms and conditions before continuing.

While most people skip reading and blindly click “accept”, when it comes to buying software like computerized maintenance management system (CMMS) software, failure to understand license terms and conditions can lead to costly consequences. In this article, we discuss the different aspects of CMMS licenses that you should review before making a final purchase decision or ultimately using the software.

For the purposes of this article, we have limited the discussion of software license agreements to information relevant to you as the CMMS project manager, maintenance manager, or similar role. It covers general information that can be used to evaluate CMMS systems and evaluate vendors against one another.

What is a CMMS Software License?

A CMMS software license is a legal agreement between the software owner (vendor) and end user (your organization) that outlines the rights that apply to the distribution, use, maintenance, and management of the CMMS. It establishes the ownership rights of the CMMS vendor, and the usage rights and restrictions of the end user. Software license agreements are also commonly called End User License Agreements (EULAs) or Software License Agreements (SLAs).

When you purchase a CMMS for your organization, you are not buying the CMMS per se. You are really buying a license, or permission, to use the software application. The software license agreement spells out the rights granted to license holders, such as how long the license is valid, who may use it, and where it can be used.

Main Areas Covered by CMMS License Agreements

Though it may seem like boring legalese, CMMS license agreements contain valuable information about your rights as an end user, as well as other information about your system access and use. Below are the different areas typically covered by CMMS software licenses.

License Type

The license type determine the duration of time that a software license is valid. The most common types are perpetual or subscription licenses.

Perpetual vs. Subscription Licenses

Perpetual licenses are sold on a one-time basis and allow you to access and use the CMMS forever (i.e., in perpetuity). For on-premise software, the perpetual license typically applies only to the version installed, and not necessarily future versions. However, many vendors include free updates and upgrades with a license purchase for a fixed period of time. Organizations may also purchase separate service plans to receive upgrades and support.

Subscription licenses allow you to use the software within a fixed timeframe, typically a month or year. When the end date of the term is reached, the license is typically renewed automatically and allows usage for another interval. Unlike a perpetual license, which permits usage of the CMMS forever, a subscription license is “rented” from the vendor for a fixed period, and requires ongoing payment in order to continue use.

Read also: Understanding CMMS Software Pricing

User Rights

User rights, typically found in a “Usage Rights”, “License Grant”, or similarly named section, govern how users are authorized to access and use the CMMS. Common user right groupings are called named users, concurrent users, and unlimited users.

Named vs. Concurrent User Licenses

Named users licenses allow specific individuals within your organization to access and use the CMMS. The license is tied to the individual until it is revoked, transferred to another person, or cancelled (terminated). Named user licenses provide clear visibility and control over software access, ensuring that only authorized users can log in and use it.

Concurrent user licenses are based on how many users require access to the system at the same time (concurrently). With this model, any number of individuals may log in and out of the software, but access is restricted by the number of “seats”, or licenses, available at a given time.

Unlimited Users

Unlimited user licenses allow just that – an unlimited number of people to access and use the CMMS. Most commonly, unlimited user licenses are intended to allow non-maintenance employees to submit work requests using the CMMS’s web portal. Depending on the vendor, an unlimited work request user license may be included with a full user license purchase, or may be sold separately.

Unlimited user licenses may also be offered to very large organizations engaged in enterprise-level maintenance management. Enterprise license agreements (ELAs) provide anyone across the organization with full access to the CMMS. Note, however, that access may be restricted by other factors, such as geographic location. Location considerations are discussed later on.

User Role

Some CMMS vendors sell licenses related to a person’s job responsibilities or role within their organization. In this case, the license grants certain rights to CMMS users based on their role. Common user roles and their related system permissions are listed below:

• Administrator: Ability to manage users, configure system settings, set user permissions, and manage data.
• Maintenance Managers: Ability to create and assign work, schedule work orders and employees, generate reports, and access cost tracking tools.
• Maintenance Technicians: Ability to view, update, and complete work orders; update asset performance and condition information; check items in and out of inventory; and access digital files.
• Requesters: Ability to submit and review service requests.

Site or Corporate Licensing

CMMS license agreements may contain special terms and conditions for large organizations, or multi-site organizations spread across a wide geographic area, that state where the software may be accessed and used. Typically, the CMMS license applies only to the specific company and location that purchased the license.

For example, if you have a distribution center on both the East and West Coast, the East Coast location is not permitted to use the CMMS just because the West Coast location owns a license, even though both locations are part of the same organization. Alternatively, vendors may offer an unlimited user license to organizations with large maintenance teams operating out of a single location or maintenance teams split across geographic areas. These site licenses may have special pricing.

It is also important to consider your company’s future growth plans. Existing CMMS licenses may not necessarily apply to any future locations your organization operates. Make sure to discuss any location-based licensed terms with your vendor.

Hosting, Maintenance, and Support

CMMS license agreements may include details about what software hosting, maintenance, and support is included with your license purchase. For example, some vendors charge a hosting fee for cloud-based CMMS software, in addition to the licensing fee (though both are typically included in the subscription license price). If you no longer wish to use the software in the cloud, some vendors can transition the CMMS to an on-premise installation.

Vendors that sell perpetual licenses may include maintenance and support service for the first year, but then require you to purchase maintenance agreements to continue receiving support and upgrades. With subscription licenses, support and maintenance are often included in the license renewal cost. Some vendors may sell support and service agreements separate from licenses.

Other maintenance and support items to examine include:

• What type of support is available (i.e., phone, email, live chat, priority) and when
• Whether product updates and upgrades are included
• Whether support documentation, such as user guides, are available
• What process is used to report bugs or request features

Termination and Renewal

Termination and renewal terms specify how organizations are to renew or continue with their software license agreements. If termination processes are not properly followed, you may be on the hook for paying for licenses that you don’t use, or in extreme cases, prompt legal action. Conversely, not understanding renewal requirements (and letting the license expire) may cause your team to unexpectedly lose access to the CMMS and critical maintenance data.

Final Thoughts on CMMS Licenses

Thoroughly understanding CMMS software license agreements is critical for making informed purchase decisions and avoiding potential pitfalls. By carefully examining CMMS license terms and conditions, you can ensure that the CMMS aligns with the needs of your organization.

FTMaintenance Select is a low-cost, low-risk CMMS solution for documenting, managing, and tracking maintenance operations. Request a demo today to learn more.

Computerized maintenance management system (CMMS) software has become an essential tool for organizations that seek to modernize their maintenance departments. However, it is easy for inexperienced CMMS buyers to be influenced by flashy user interfaces, lengthy lists of features, or high-pressure sales tactics and end up buying a CMMS that doesn’t meet their core functional needs.

This article provides an easy-to-follow process that increases your likelihood of selecting the best CMMS for your organization.

Selecting a CMMS That Meets Your Requirements

There’s a lot of pressure on buyers to pick the perfect CMMS solution. After all, no one wants to be responsible for choosing a system that is too expensive to implement, doesn’t meet their organization’s needs, won’t be used, or will be quickly outgrown or replaced.

Taking the time to understand your organization’s needs and goals will help you avoid the CMMS buying pitfalls that often result in buyer’s remorse. The following sections outline a systematic approach you can use to make a well-informed CMMS purchase decision.

1. Understand Needs vs. Wants

When researching and selecting a CMMS, it is important to distinguish between your needs and wants. Needs are the core requirements that the CMMS must fulfill, and are tied directly into your maintenance management and business goals. For example, if your goal is to reduce the number of unexpected failures, the CMMS should have preventive maintenance scheduling.

Wants are “nice-to-haves” that are not essential to the core functionality of the CMMS. For example, viewing assets on an interactive floor map is an attractive feature, but is not required for asset location tracking.

Clearly defining your CMMS needs versus wants helps you avoid getting swayed by impressive, yet unnecessary features. Additionally, focusing only on your CMMS needs prevents you from wasting time trying to find a solution that “does it all.” In fact, very few systems will contain everything you both need and want.

That said, it is okay to create a list of “wants” separate from your needs. These value-added features could give one CMMS an edge over another during your evaluation, all else being equal.

2. Conduct a Needs Assessment

A needs assessment is a process that helps you identify, understand, and address your maintenance management challenges. It examines the gaps between the current state of your maintenance operations and your maintenance management goals. Such goals are generally well-known throughout the organization or may be handed down by upper management.

Your job is to determine why goals aren’t being met. Below are examples of common tools and techniques that will help you collect data about your maintenance process.  Note that a combination of these methods is often required to get the full picture.

Direct Observation

Direct observation is a great way to gather data about how certain tasks are completed during normal day-to-day operations. You might ask an employee to demonstrate a task or simply observe a chain of events. Be mindful, however, that employees tend to perform tasks the way they should be done when being watched. Therefore, information gathered from observation can be somewhat unreliable.

Stakeholder Interviews

Another needs assessment technique is to interview key stakeholders including maintenance technicians, production managers, or any others who are affected by the maintenance team. Having these discussions reveals what pain points each stakeholder faces, and may uncover hidden challenges that are not observable otherwise.

SWOT Analysis

A common project management technique used for needs assessment is a Strengths, Weaknesses, Opportunities, and Threats (SWOT) analysis. A SWOT analysis is a method for identifying internal strengths and weaknesses, and external opportunities and threats related to the goal or project. A SWOT analysis example grid is shown below:

As you can see, a SWOT grid can provide an analysis of your maintenance process in one place, and enables you to visualize your current strengths and weaknesses while also considering factors that might affect future performance.

Data Analysis

Leveraging maintenance records – assuming they exist – helps identify trends and patterns in maintenance activity, asset performance, and the quality of maintenance work. Using one of several root cause analysis (RCA) techniques may reveal the cause of recurring failures. Analyzing key performance indicator (KPI) reports may draw attention to the assets in most need of maintenance intervention. If you have several identical assets, you may benchmark low performers against those that are performing as expected.

If you do not have formal maintenance records, congratulations – you’ve just identified an opportunity for improvement!

Thinking About the Future

While the primary focus of a needs assessment is to understand your current requirements and challenges, it’s also important to plan for future needs. Consider what your maintenance needs might be in the next year, 3 years, or 5 years, and think about what might be required to meet those needs. For example, it is important to invest in a scalable CMMS that can accommodate increasing amounts of users and data as the organization grows.

3. Prioritize Needs and Determine Requirements

After conducting the needs assessment, review and analyze the information you’ve collected to identify your needs. Based on the depth of your needs assessment, you may have discovered a few general needs or a mixed bag of broad and specific needs. It can be helpful to group needs into broad categories, such as work order management, asset management, labor management, and so on.

Next, prioritize your needs or need categories based on their significance to your goals. For example, you may discover opportunities to streamline your service requests process, but if your goal is to decrease downtime, it is more critical to improve preventive maintenance scheduling.

As you analyze your list of needs, your core functional requirements become clear. While it may be helpful to further breakdown needs into smaller pieces, it is important to remain focused on what you need a CMMS to do, and not how the software will do it. Every CMMS solution will likely meet your needs, albeit in slightly different ways. You will develop preferences for how a system works later when viewing software demonstrations.

Read More: What to Expect from a CMMS Software Demo

4. Create and Utilize an Evaluation Tool

Now that you’ve identified and prioritized your needs, you need a way to ensure that you remain unbiased when researching potential CMMS solutions. Create an evaluation tool such as a checklist or scorecard to evaluate solutions based on how well they meet your needs. For example, you may create a scorecard that assigns scores to each need as follows:

• 0 = Solution does not meet requirements
• 1 = Solution meets minimum requirements
• 2 = Solution exceeds minimum requirements

Alternatively, you might evaluate features on multiple criteria such as functionality, customization, ease of use, etc., and calculate a composite score. Whichever tool you use, it is critical that it be used to evaluate all potential solutions so that scores can be compared to one another fairly.

Also Read: What Makes CMMS Software Easy To Use?

5. Start Your Vendor Research

Once you’ve assessed your needs, prioritized them, and created your evaluation tool, you are ready to dive into vendor and product research, including viewing software demos. During this process, refer back to your previous discovery and evaluation tool often to stay focused on your core needs.

Related Resource: Questions to Ask Your CMMS Vendor Before Buying

Achieve Your Maintenance Goals with FTMaintenance Select

With so many CMMS solutions on the market, it can be difficult to know which one is best for your organization. Using a systematic approach makes it easier to find a solution that meets your needs in the most efficient, objective manner – and might even make you look like a hero! FTMaintenance Select is a full-featured CMMS solution for managing work orders, assets, MRO inventory, preventive maintenance, and more. Request a demo today to learn how FTMaintenance Select meets the unique needs of today’s maintenance organizations.

Pricing is a key factor organizations consider when evaluating computerized maintenance management system (CMMS) software. As you may have noticed during your research, CMMS vendors set their prices in various ways, making it difficult to make apples-to-apples comparisons between solutions. We’ve created this article to help you understand CMMS software pricing in order to make an informed purchasing decision about your future maintenance software.

How is CMMS Pricing Determined?

In general, CMMS pricing is determined by three factors: 1) deployment method, 2) the number of users who will access the CMMS, and 3) features.

Deployment refers to how the CMMS is delivered. Buyers have the choice between on-premise software which is installed and run locally, or cloud-based CMMS which is installed and run on vendor-owned or –leased servers. Cloud deployments are the most common.

The number of users refers to the number of people that will require a username and password to log in to the CMMS. Each of these users requires a license, with some exceptions. Depending on the system, light users such as service requesters may not require licenses. Unlimited user licenses are also available.

Features are the functional capabilities available to users. This includes all the features included in the base software, but may also extend to mobile apps or other product interfaces.

Common CMMS Software Pricing Models

The following software pricing models are commonly used by CMMS vendors.

Per User Pricing

Per user, or per seat, pricing is the most straightforward CMMS pricing model. Per user pricing is based on the number of users who are authorized to access the software. Essentially, each user who requires access to the CMMS is considered a “seat” or unit, and the price is calculated accordingly.

This pricing model is often the preferred option for businesses that require a fixed number of users to access the CMMS. It provides a predictable cost structure that is easy to understand and manage. Additionally, the per user pricing model often includes the option for quantity discounts, which is beneficial to businesses that require a large number of user licenses.

Overall, the per user pricing model provides businesses with a clear understanding of how much they will be paying based on the number of users who require access to the CMMS.

Per Feature Pricing

Per feature pricing is a type of CMMS pricing model that is based on the specific functionality that a business requires. Typically, vendors offer a basic package that includes essential features such as work order management software and asset management, with the ability to add additional features “a la carte” or individually.

This pricing model allows businesses to customize their CMMS to meet their specific needs, by only paying for the features that they require. However, it is worth noting that this can lead to increased costs, particularly if a business requires premium features that are not included in the base package.

While per feature pricing can be a flexible option, organizations should carefully consider which features they require and whether it is cost-effective to pay for them on an individual basis. It is also worth noting that this pricing model can be more complex to manage than per user pricing, particularly if multiple features are required.

Overall, per feature pricing can be a useful option for organizations that require customized functionality from their CMMS. However, careful consideration should be given to which features are required and whether this pricing model represents the best value for the money.

Per Asset Pricing

In contrast to pricing models that are based on users or features, some CMMS vendors determine their pricing based on the size of an organization. This pricing model is commonly known as per asset pricing and is based on factors such as area of a facility (in square feet), the number of facilities in which the CMMS will be utilized, the number of assets that will be managed in the CMMS, or a combination of these factors.

Per asset pricing is particularly useful for organizations that have a significant physical footprint, are asset-intensive, and require access for a large number of users. By basing the pricing on the number of assets or size of the facility, this pricing model provides cost savings opportunities for organizations with a large number of assets to manage.

Additionally, per asset pricing provides organizations with a more accurate pricing structure that aligns with their needs. Rather than paying a fixed price based on the number of users or features, per asset pricing is tailored to the specific needs of an organization. This can be particularly useful for organizations with unique requirements that cannot be met by other pricing models.

Overall, per asset pricing can provide a cost-effective and flexible pricing structure for organizations with significant physical assets. By tailoring pricing to the specific needs of an organization, this pricing model provides cost savings opportunities and a more accurate pricing structure that better aligns with business needs.

Per Work Order Pricing

While per user, per feature, and per asset pricing models are the most common in the CMMS market, there are some vendors that offer a different CMMS pricing model that may suit some organizations’ needs. This model is known as a pay-as-you-go, usage-based model, and is based on the number of work orders processed in a set time frame, usually monthly.

With this pricing model, organizations only pay for the number of work orders they process, making it ideal for those that use the CMMS inconsistently or process a small number of work orders. This model allows organizations to avoid paying for features or user licenses that they don’t need and only pay for what they use.

This CMMS pricing model can be particularly useful for businesses that experience seasonal fluctuations in work order volume, or those that operate in industries with unpredictable demand for maintenance services. By using a usage-based model, these organizations can manage their costs more effectively and adjust their usage of the CMMS accordingly.

It is worth noting, however, that this pricing model may not be the most cost-effective option for organizations with high work order volumes, as the cost can quickly add up. Additionally, some vendors may require a minimum number of work orders to be processed each month, which may not suit the needs of all organizations.

Tiered Pricing

One of the most popular ways that vendors provide pricing for their CMMS software is through a tiered pricing model. This pricing model combines per user and per feature pricing, allowing vendors to offer multiple solutions that can cater to the needs of different maintenance teams.

The tiered pricing model typically consists of several different packages, each with a different set of features and functionalities. They are structured in a tiered format, with each higher tier offering more advanced features and capabilities than the previous one.

The lowest tier typically offers a basic package with a limited set of features, such as work order management and asset tracking. As buyers move up to the higher tiers, they gain access to more advanced features and functionality, such as predictive maintenance, mobile app access, and real-time data analysis.

Pricing for each tier is usually based on the number of users that will access the system, and the number of features that are included. The lowest tier comes at the lowest price, while higher tiers with more advanced features come at a higher cost.

The advantage of tiered pricing is that it allows buyers to choose the package that best fits their specific needs and budget. Users can start with at the lowest tier solution and then upgrade to a higher tier as their needs grow, rather than having to purchase an entirely new system.

Additionally, the tiered CMMS pricing model provides more transparency in pricing, as users can easily see what features are included in each tier and compare the costs. This helps organizations make more informed purchase decisions and avoid overpaying for features they may not need.

Other Costs to Consider

The cost of a CMMS is more than the price of the software. Below are some other costs to consider when evaluating potential CMMS solutions.

Software Setup

Software setup costs are affected by your chosen deployment method, and include anything required to get your software into the hands of your team. For on-premise deployments, these costs include hardware, software, and IT infrastructure required to support the CMMS. In some cases, vendor assistance may be needed to ensure a proper installation.

Cloud-based solutions are accessed over the internet and do not require installation. However, you will need to purchase mobile devices if you expect your team to access the CMMS from the field.

Further Reading: How to Choose Mobile Devices for Your Maintenance Team

Training

CMMS training options and pricing vary by vendor. While many vendors include introductory training with initial purchase, some require the purchase of specialized onboarding training sessions. User training may also be available through user manuals, recorded videos, live webinars, or online knowledge bases. In-person, onsite training may be available or purchased separately or only available with the highest tier CMMS package.

Besides startup training, also consider the cost of ongoing user training. Ongoing training helps train new hires on the CMMS and provides a refresher for veteran employees. Training may also be necessary when you expand use of the system, such as using a mobile CMMS app alongside your cloud CMMS software.

Support

In most cases, vendors offer basic online or email support as part of a CMMS purchase. However, there may be additional charges for phone support or priority support. Organizations with a cloud-hosted solution may also be required to pay a separate hosting fee.

Maintenance

Ongoing CMMS maintenance costs include product updates, patches, and software upgrades. These costs are usually included with cloud-hosted subscriptions. Organizations with an on-premise installation may be required to pay for new software versions.

Explore FTMaintenance Select Purchase Options

Comparing CMMS pricing between vendors can be a challenge when pricing is presented in various ways. FTMaintenance Select offers flexible CMMS purchase options with both on-premise and cloud-hosted options. Contact our sales team today to learn more about FTMaintenance Select.