What is PLM Software Associated Cost?

What is PLM Software Associated Cost?

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


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