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Discussion: Is an update contract necessary ?

RallnusRallnus Member Posts: 79
edited 2007-10-12 in NAV/Navision Classic Client
What do you think? Do you have an update contract with your solution center? How do you value the risk?
Rallnus (Yamaha FJ1200 - '89 / 25th anniversary was great!)

Comments

  • matttraxmatttrax Member Posts: 2,309
    It really depends, I guess. I never worked that closely with the sales people at my solution centers. Is it just for upgrading to the next version of Navision? Most of the upgrades I did for people were when they didn't have a contract (as far as I knew) and just came in and decided they wanted to. So I guess in that sense a lot of people don't think it's worth it.
    Matt Traxinger - ArcherPoint
    My Blog - nav.education
  • Alex_ChowAlex_Chow Member Posts: 5,063
    Are you talking about upgrading your contract with Microsoft? Or your solution provider? These are 2 different things.
    Confessions of a Dynamics NAV Consultant = my blog
    AP Commerce, Inc. = where I work

    Getting Started with Dynamics NAV 2013 Application Development = my book
    Implementing Microsoft Dynamics NAV - 3rd Edition = my 2nd book
  • bbrownbbrown Member Posts: 3,268
    Alex raises a good point. Are you taking about software maintenance (Microsoft - give you the new software) or a contract with your solution center that covers the upgrade labor?
    There are no bugs - only undocumented features.
  • RallnusRallnus Member Posts: 79
    Ok, here is a little bit more information: Our soluction center told us that microsoft will raise the "Licence Update Contract"-Fee at the end of Oktober. (Microsoft Dynamics NAV Enhancement 1 Plan)
    Our CIO isn't very responsive of this, so we have to decide if we abandon the contract.
    Rallnus (Yamaha FJ1200 - '89 / 25th anniversary was great!)
  • DenSterDenSter Member Posts: 8,305
    Consider this though: if you abandon the contract, you will not be eligible for license updates. If you want to upgrade to the next version, MS will make you catch up the upgrade fees first, or you can purchase a whole new license.
    Daniel Rimmelzwaan
    RIS Plus, LLC
  • headley27headley27 Member Posts: 188
    We just renewed our software maintenance contract with Microsoft.

    We looked into whether we needed to continue with the contract or not and it pretty much boils down to this:

    If you are going to continue to use Navision for an extended length of time (i.e. you won't be moving to another product) and you want to stay fairly current with the software version, you should renew the contract.

    You will pay now, or you will pay more later.

    If you will outgrow Navision soon and will need something like a full-scale Oracle or SAP database then you may not want to renew.

    Also, if you do not require support and you will not be upgrading in the near future, it may be cheaper to re-purchase Navision later.
    The problem is that you never know what might pop-up and bite you.
    For example, we were on 3.7 and it doesn't work with Vista.
    We could have gotten around this by forcing everyone with Vista to use Terminal Services but we didn't really want to.
    That's just a small example but there may be a situation that may force an upgrade to the newest version and you may pay a premium to do so.

    I hope this helps.
  • Alex_ChowAlex_Chow Member Posts: 5,063
    Rallnus wrote:
    Ok, here is a little bit more information: Our soluction center told us that microsoft will raise the "Licence Update Contract"-Fee at the end of Oktober. (Microsoft Dynamics NAV Enhancement 1 Plan)
    Our CIO isn't very responsive of this, so we have to decide if we abandon the contract.

    Hmm.. I haven't heard of MSFT raising their enhancement fee. In the US, it's 16% of the software price. MSFT might be trying to set all of the countries and regions at the same rate.

    On the enhancement portion. I always recommend our customers to just pay it. It's like buying insurance for your software, you won't notice it when you pay it, but you thank God when you need it.
    Confessions of a Dynamics NAV Consultant = my blog
    AP Commerce, Inc. = where I work

    Getting Started with Dynamics NAV 2013 Application Development = my book
    Implementing Microsoft Dynamics NAV - 3rd Edition = my 2nd book
  • cnicolacnicola Member Posts: 181
    Alex Chow wrote:
    On the enhancement portion. I always recommend our customers to just pay it. It's like buying insurance for your software, you won't notice it when you pay it, but you thank God when you need it.

    Alex I am not sure about not noticing it when you pay it (16% + usually 10% for your NSC adds up very quick) :D but you do have a point.
    Apathy is on the rise but nobody seems to care.
  • Alex_ChowAlex_Chow Member Posts: 5,063
    cnicola wrote:
    Alex Chow wrote:
    On the enhancement portion. I always recommend our customers to just pay it. It's like buying insurance for your software, you won't notice it when you pay it, but you thank God when you need it.

    Alex I am not sure about not noticing it when you pay it (16% + usually 10% for your NSC adds up very quick) :D but you do have a point.

    I meant the benefits of staying on the enhancement program.

    I should change my quote to:
    It's like buying insurance for your software, you'll b*tch when you pay it, but you thank God when you need it.
    Confessions of a Dynamics NAV Consultant = my blog
    AP Commerce, Inc. = where I work

    Getting Started with Dynamics NAV 2013 Application Development = my book
    Implementing Microsoft Dynamics NAV - 3rd Edition = my 2nd book
  • cnicolacnicola Member Posts: 181
    That sounds much better 8) :D
    Apathy is on the rise but nobody seems to care.
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