What is the difference between “concurrent”/ “competition” and “named” user licensing?
Every executive director who at least once had to make such a choice knows how difficult it is to make the right decision when choosing an ERP system for a company.
In recent years, there has been an increase in the presence of global software solutions, which indicates a favorable increase in awareness of the need to implement ERP solutions for further business growth and development. On the other hand, it is an incentive for business software developers to actively fight in the global competition.
When choosing an ERP solution, after considering all the needs and going through the steps for a successful implementation, one of the biggest dilemmas is what to choose: a global or a local solution?
Unfortunately, “One size does not fit all”.
The principles of everyday end-user shopping can be easily recognized and applied to such complex choices. Let’s look at some examples:
Buying a sweater: Does one size fit all?!
If a sweater doesn’t meet demand in the same size and color, why would that be the case with business software?
In other words, the framework and capabilities for implementing business software in a company with 20 employees and a corporation with more than 400 employees sounds like a top model who constantly wears an XXL sweater and expects it to fit anywhere, anytime.
There are many examples to compare. The arguments for successfully covering business processes with local or localized solutions are numerous, and the key to the success of most of them lies in the knowledge and experience gained while working in the local market.
Of course, the global view of opportunities in the developed world and the experience we gain from the technological and economic development of the modern environment find wide application in their local system.
With all efforts to get closer to the trends of the world order, the reality in the local economy shows that it is especially important to assess the moment when certain knowledge from the global level can and should be applied at the local level. Applying such knowledge at the wrong time is measured by a huge waste of resources and an extreme lack of results.
How developed the world is in some segments is far from the reality of our economy and the relationship between the needs and capabilities of local companies. However, today we are seeing a series of changes regarding the use of global software solutions. Global retailers, depending on their size and global market share, have the ability to make changes that can significantly alter operating costs and other conditions.
So today we have a situation where many domestic users face new challenges caused by choosing a global business software provider:
The provider implements the solution to no longer count licenses for concurrent access to the program, but each user of the program must have a license to use it. If we know that the average company/user has only used 10 competing licenses for 20 users so far, it is clear that they will need to purchase 10 more licenses from now on. In practice, you will need to invest in a localized business plan to operate without interruption.
The service provider decides to stop updating on-premises applications. So, in effect, it forces users to upgrade to a cloud-based solution that will be able to update to new versions. Indirectly, this means that soon more will have to be spent annually on updating to new versions of a localized program than on the average update of a local solution.
In practice, such decisions for the average Bulgarian company mean that the use of this program in the future will cost 4-6 times more than before.
What is left for such users?
Budget in your finances for global vendor solutions or choose a “think global – act local” strategy when choosing software.
- in more than 10 countries;
- with 60,000 simultaneous users in the region;
- over 50 authorized consultants for support and assistance in the work.
- in full compliance with Bulgarian legislation;
- tailored to the needs of users;
- develops in the Balkan region;
- in the spirit of the usual rules of the local economy;
- with a choice: hosting or installation in a company;
- with costs known in advance.
- with the ability to chat and tune live, not endless reading on forums.
Now it’s your turn. What’s your choice?