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ANANTATECH HUB

Insight

The licence is the cheapest part

A business with no IT staff pays most of the cost of software in time, and almost none of it appears on the invoice.

1 min read

What the invoice covers

The subscription is visible, predictable and easy to compare between vendors, which is why it dominates buying decisions. It is rarely the largest number.

What it does not cover

CostFalls onWhen
Initial data entryExisting staff, usually after hoursBefore go-live
The physical stock count at cutoverEveryoneOne weekend, and it is longer than expected
Learning timeEvery user, at reduced outputFirst few weeks
The internal owner's ongoing timeOne person, permanentlyEvery week thereafter
Process change in receiving or closingSpecific individualsPermanently
Hardware, printers, connectivityCapitalOnce, then replacement

None of these appear on a quotation, and for a small business the middle rows are frequently larger than the licence over the first year.

What accessible actually means

Affordable pricing is the easy half. The harder half is that a business with no IT staff must be able to set the thing up, run it and recover from a mistake without calling anyone.

That constraint rules out a lot of otherwise capable software. A system needing a consultant to add a user or change a tax rate is not accessible at any licence price, and the ongoing dependency is a cost that never ends.

Ask for the year-three number

Not year one. Year three, with the users you will have added, the modules you will have needed, and the support arrangement you will realistically be on.

A vendor who cannot answer that has either not thought about it or would rather you did not.

Questions about anything here, or a situation this does not cover? contact@anantatechhub.com