Annual Support Fee

ChessExpert

Hello there experts.
We have purchased a system with a specialized functionality to it. Let’s call it “My Operation Module” with Dynamics Nav on it.
Then we are being billed annually for ‘ANNUAL SUPPORT FEE’, encompassing Annual Licensing of the “My Operation Module” and Customer Support.
We are already being billed on an hourly support fee every time we call them to fix the problem.
Every time we upgrade our number of users, they also increase the “Annual Support Fee”.
Can you please give me some insights if this is reasonable?

Others call this an "ADD-ON" module.

David_Singleton

ChessExpert wrote:

Hello there experts.
We have purchased a system with a specialized functionality to it. Let’s call it “My Operation Module” with Dynamics Nav on it.
Then we are being billed annually for ‘ANNUAL SUPPORT FEE’, encompassing Annual Licensing of the “My Operation Module” and Customer Support.
We are already being billed on an hourly support fee every time we call them to fix the problem.
Every time we upgrade our number of users, they also increase the “Annual Support Fee”.
Can you please give me some insights if this is reasonable?

Others call this an "ADD-ON" module.

Without knowing the details of the agreement, its impossible to comment.

matttrax

In general terms, companies charge a fee so that you can get updated objects and code when you choose to upgrade. They may also charge a fee for support.

As David essentially said, your company signed the contract. Without the details it's hard to answer.

Is it reasonable for a company to charge you for an upgrade to their code and support for their product? Yes.

Alex_Chow

ChessExpert wrote:

Hello there experts.
We have purchased a system with a specialized functionality to it. Let’s call it “My Operation Module” with Dynamics Nav on it.
Then we are being billed annually for ‘ANNUAL SUPPORT FEE’, encompassing Annual Licensing of the “My Operation Module” and Customer Support.
We are already being billed on an hourly support fee every time we call them to fix the problem.
Every time we upgrade our number of users, they also increase the “Annual Support Fee”.
Can you please give me some insights if this is reasonable?

Others call this an "ADD-ON" module.

I think you're confusing the annual support fee for software itself and the services that the solution center provides. They're not the same.