the volume forecasts you prepared. If you are considering outsourcing options, carefully
study the alternative fee structure models described earlier. If possible, prepare charts to
show the results graphically, and build in what-if capability so you can gauge the impact
if one or more variables change.
If you are considering a software package, be sure to consider acquisition options.
When you purchase software, what you are buying is a software license that gives you
the right to use the software under certain terms and conditions. For example, the
license could allow you to use the software only on a single computer, a specified number of computers, a network, or an entire site, depending on the terms of the agreement.
Other license restrictions could prohibit you from making the software available to others or modifying the program. For desktop applications, software license terms and conditions usually cannot be modified. For large-scale systems, license agreement terms
often can be negotiated.
Also consider user support issues, which can account for a significant part of TCO. If
you select an outsourcing alternative, the arrangement probably will include certain
technical support and maintenance. If you choose in-house development, you must consider the cost of providing these services on your own. If you purchase a software package, consider a supplemental maintenance agreement, which offers additional support
and assistance from the vendor. The agreement might provide full support for a period
of time or list specific charges for particular services. Some software packages provide
free technical support for a period of time. Afterward, support is offered with a charge
per occurrence, or per minute or hour of technical support time. Some software vendors
contact registered owners whenever a new release is available and usually offer the new
release at a reduced price.
the volume forecasts you prepared. If you are considering outsourcing options, carefullystudy the alternative fee structure models described earlier. If possible, prepare charts toshow the results graphically, and build in what-if capability so you can gauge the impactif one or more variables change.If you are considering a software package, be sure to consider acquisition options.When you purchase software, what you are buying is a software license that gives youthe right to use the software under certain terms and conditions. For example, thelicense could allow you to use the software only on a single computer, a specified number of computers, a network, or an entire site, depending on the terms of the agreement.Other license restrictions could prohibit you from making the software available to others or modifying the program. For desktop applications, software license terms and conditions usually cannot be modified. For large-scale systems, license agreement termsoften can be negotiated.Also consider user support issues, which can account for a significant part of TCO. Ifyou select an outsourcing alternative, the arrangement probably will include certaintechnical support and maintenance. If you choose in-house development, you must consider the cost of providing these services on your own. If you purchase a software package, consider a supplemental maintenance agreement, which offers additional supportand assistance from the vendor. The agreement might provide full support for a periodof time or list specific charges for particular services. Some software packages providefree technical support for a period of time. Afterward, support is offered with a chargeper occurrence, or per minute or hour of technical support time. Some software vendorscontact registered owners whenever a new release is available and usually offer the newrelease at a reduced price.
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