What Does CMMS Software Cost?
When evaluating the cost of computerized maintenance management software (CMMS), there is a lot to consider. One of the pitfalls of budgeting for a CMMS is only factoring in the initial purchase price. However, the sticker price is not representative of the cost of CMMS software over its lifetime.
You must also account for any ongoing expenses, such as license agreements or subscriptions, technical support agreements, and training costs. If hosting CMMS software on your company’s servers, you also incur ongoing IT expenses to support the software. With so many factors contributing to the CMMS software cost, you must include the total cost of ownership into the purchase decision.
Total Cost of Ownership (TCO)
The total cost of ownership (TCO) reflects all expenses involved in the purchasing, deployment, implementation, support, and maintenance of the CMMS. If these cost drivers are not considered ahead of time, you’re software budget will likely be inaccurate, and you’ll be taken by surprise at all of these “hidden” fees. But don’t let the TCO calculation scare you. CMMS vendors can help you keep these costs under control. The following are some of the main cost drivers of CMMS software.
- Software Licenses: The initial cost of the software, usually based on the number of users, either named or concurrent.
How CMMS Vendors Help: Different licensing options allow customers to scale the software at a cost that fits within their budget. Most vendors offer affordable subscription-based pricing options. FTMaintenance offers both subscription-based and purchased software licenses, based on the number of concurrent users.
- Hosting Environment: The location where the software is installed and run, either locally or in the cloud.
How CMMS Vendors Help: Nearly every vendor offers a cloud-hosted solution that allows the software to be accessed over the internet instead of being installed on company servers. Some CMMS software, like FTMaintenance, can also be installed on-premise for companies that already have a reliable IT infrastructure.
- Setup and Installation: Fees paid to have the vendor install and set up the system on your computers.
How CMMS Vendors Help: Cloud-hosted systems do not require installation. Vendors that offer on-premise versions of their software may include installation assistance in the initial software price or as part of a technical support package. Installation assistance is included with FTMaintenance on-premise installs.
- Existing IT Infrastructure: Your company’s collection of hardware, software, networks, servers, and related equipment used to manage and operate a computing environment.
How CMMS Vendors Help: On-premise CMMS typically has a very small footprint and can be easily managed by companies with ample IT resources. If using CMMS on the cloud, the vendor does all the “heavy lifting,” and the cost is included with your license purchase or subscription. FTMaintenance can be deployed either on-premise or in the cloud.
- Initial User Training: The process of teaching you and your staff how to effectively use and interact with the CMMS before it goes live.
How CMMS Vendors Help: Vendors provide a variety of training resources, including user manuals, live webinars, knowledge bases, and recorded videos. Access to these materials is often included with active licenses or subscriptions. FTMaintenance web-based training and access to a video tutorial library is included as part of a complimentary implementation services package.
- Ongoing User Training: The process of teaching new users how to effectively use the CMMS or investigating advanced topics with experienced users.
How CMMS Vendors Help: Most vendors offer in-person or web-based training options. Though personal user training is a paid service, having a properly trained team leads to increased productivity and other cost-saving benefits.
- User License Agreements and Renewal Fees: The monthly or annual fee paid to renew a license agreement, receive product upgrades, and have access to technical support.
How CMMS Vendors Help: Annual license agreements are available for a fraction of the price of the original software license. With subscription licensing, operational fees are included in the monthly payment. Though keeping license agreements active is an ongoing cost that must be paid, they provide you with access to all of a vendor’s invaluable support resources.
- Software Upgrades: Replacing current software with newer versions that add features, fix defects, and improve performance.
How CMMS Vendors Help: Software upgrades are typically included as part of a software license agreement or subscription. Product updates are automatically installed for cloud based CMMS systems.
- Technical Support: A service provided by the CMMS vendor that provides customers with help and advice about the product.
How CMMS Vendors Help: Responsive technical support helps customers overcome problems and resolve issues quickly, which improves user adoption and increases productivity. FTMaintenance has top rated CMMS support.
Going Beyond TCO
While a helpful decision-making tool, the total cost of ownership is only one half of the equation. TCO is only an indication of what product or deployment option is cheaper, and does not reflect the value the CMMS provides or any cost savings received from the system. The value of the CMMS is an important metric when calculating your return on investment (ROI), and is done separately.