You're facing software maintenance costs above your budget. How will you navigate this financial challenge?
Navigating financial hurdles can be tricky. Share your strategies for managing software maintenance costs that exceed your budget.
You're facing software maintenance costs above your budget. How will you navigate this financial challenge?
Navigating financial hurdles can be tricky. Share your strategies for managing software maintenance costs that exceed your budget.
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Max Shabliy
Data and Digital Transformation Leader | Emory MBA | Head of BI @ Inspire Brands
(edited)First question is - why? -Is this an oversight in our capacity planning process? -Did the vendor increase the cost without informing us? -Did we do a good job negotiating in the first place and discussed the increase cap? If we are at the contract renewal phase, we can attempt to negotiate the existing contract. In parallel, it makes sense to evaluate alternative solutions so then we can utilize it as leverage during negotiations (switch costs need to be taken into account). If contract negotiations is not an option, our team needs to deep dive on the cost increase and see what's driving it. Appropriate system optimizations then need to be implemented. Sometimes a larger system re-design effort will take place.
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Find out root cause for increasing maintenance efforts required whether technical, functional, statutory changes or incompetence of stakeholders in handling software affecting cost and accordingly search for desired solution. It's not always technical issues, shortcomings in the software that affects which the maintenance
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1. Check with the users about the pain points using the software, and list down the functionalities should the software have, and compare it against the proposed maintenance software. 2. Negotiate the software cost according to the scope from users. 3. Negotiate the delivery time, incase it can reduce the cost. Ensuring the highest priority functions delivered the earliest.
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To navigate software maintenance costs exceeding the budget, I would prioritize mission-critical systems and conduct a cost-benefit analysis to phase out or replace low-ROI tools. Exploring open-source alternatives, optimizing software licenses, and automating routine tasks can help cut costs. Additionally, I’d negotiate with vendors for better terms and consider outsourcing or shifting to scalable cloud services. Implementing preventive maintenance and regularly reviewing software performance would also ensure long-term savings while maintaining essential services.
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This is a common issue if we have a budget constraint, one thing I tried was negotiating vendor contract for ex in SAP tools or any other tool for that matter, you dont need sandbox environment, premium support, non essential modules etc. for at least maintenance purpose, point here is to rule out additional features from the vendor's contract plan which you don't require further. You should be aware that high software maintenance costs are sometimes result of these unused premium plans/features. Second, use cost effective tools & consider open source alternatives to reduce expenses, get in touch with your customer for further consultation while considering to maintain existing software functionality & security. Hope this helps :)
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Você pode implementar soluções em nuvem e poupar em infraestruturas como hardware e servidores próprios e custos de pessoal para manter todo este aparato
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Realizar una Evaluación de la plataforma de Hardware y Software existente en la empresa, precisando el software crítico esencial para el funcionamiento del negocio que requiera mantenimiento. El Presupuesto de Mantenimiento debe dar prioridad al software crítico. El resto del Presupuesto de Mantenimiento debe ser aplicado al resto del Software de la empresa. Es importante analizar el índice de obsolescencia y la utilidad del software del negocio y en base a ello, considerar su actualización o reemplazo, para evitar pérdidas innecesarias en el Mantenimiento de Software que no aporta valor al negocio.
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To address software maintenance costs exceeding the budget, I would prioritize essential tasks, invest in automation and monitoring tools to reduce operational expenses, renegotiate contracts with partners, and enhance the team's internal skills to handle part of the maintenance in-house, keeping budget control in focus.
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To navigate software maintenance costs exceeding the budget, I would first conduct a thorough analysis to identify the specific areas driving costs. Next, I would prioritize essential features and functionalities, potentially deferring non-critical updates. Engaging with vendors for cost negotiations or exploring alternative solutions could also provide savings. Additionally, implementing automation for routine maintenance tasks may reduce manual workload and costs. Finally, I would communicate transparently with stakeholders to align expectations and seek their input on budget adjustments.
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