Agresso: Poor buying ramps up software costs

Companies that have made an outlay on IT are finding themselves paying huge
support costs, business software group Agresso has warned.

‘Companies are beginning to feel the pain of purchasing decisions made three
to four years ago. Whether by mergers, acquisitions, new products, new
management, reorganizations, outsourcing, or anything else, they are being
forced to change – but their software won’t allow them to,’ said Agresso
marketing vice president Ton Dobbe.

Brian Sommer from analyst firm TechVentive said this situation was ‘fuelling
the popularity of the total cost of change (TCC) as a purchasing criterion’.

‘Instead of measuring up-front costs, TCC looks at the costs involved with
modifying an existing software installation. As it turns out, TCC is a far
superior measure of an ERP solution’s true cost of ownership than total cost of
ownership,’ Sommer said.

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