A blog by Oleg Shilovitsky
Information & Comments about Engineering and Manufacturing Software

What is PLM Software Associated Cost?

What is PLM Software Associated Cost?
Oleg
Oleg
6 November, 2011 | 1 min for reading

Buying enterprise software is different experience from busing consumer goods or even automobile. Direct cost (licenses) is very often is a small fraction of the overall cost. So-called Total Cost of Ownership (TCO) is combined from multiple elements – licenses, maintenance and support, implementation, etc. Few days ago, I was reading an interesting article in Redmondmag.com – Study: SharePoint cost high due to inadequate skills. The article is talking about what is the associated operational cost of SharePoint. I found the following numbers in research made by Osterman Research interesting:

The average cost to manage SharePoint is $46 per user per month, according to a “State of the Market” study by Osterman Research, which surveyed “more than 120 IT executives, managers, and staffers at mid-to-large enterprises.” The study, conducted via an August survey, was commissioned by Seattle-basedAzaleos Corp., a provider of management services for e-mail, collaboration and unified communications, based mostly on the Microsoft stack.

What is my conclusion? Actually no conclusion today. I wanted to ask your advise. SharePoint is obviously not a PLM system. However, the nature of problems SharePoint is solving for many organizations is very similar – content management and collaboration. I was thinking about some comparison and tried to find similar numbers for PLM systems. What is the cost PLM system operation? What does it included? Is it a meaningful component of your PLM operational budget?

Best, Oleg

Recent Posts

Also on BeyondPLM

4 6
5 May, 2010

User experience is important. It comes with all cool gadgets, Web 2.0 websites and iPhone apps. I think, people started...

9 June, 2016

PTC Creo will be available in the cloud soon. That’s the news that came yesterday from PTC LiveWorx 2016 event....

16 November, 2011

ROI is an important topic, and many times I’ve seen customers are not focusing on ROI assessment before starting PDM/PLM...

4 October, 2016

To maintain consistent Bill of Materials is one of the most complex data management processes between design and manufacturing. Siemens...

28 April, 2011

What do you think is the most hard thing in everything we do? This month for me was overloaded by...

10 January, 2012

Integration is an important topic in PLM. Few days ago, I was reading Aras’ blog – Understanding of integration and...

14 February, 2017

Change is the most scary thing for established business. As Steve Blank said in his book – The Startup Owner’s Manual, startup is...

8 July, 2010

Almost two months ago, I had a chance to read a blog article by Mobile Beat with some intriguing name...

4 January, 2010

It’s over. 2009… The loooooong weekend was a perfect time to think about last year, summarize, statistics, reviews, read an...

Blogroll

To the top