NF System Yearly Maintenance and Updates

I would like anyone’s comments on Navision’s Yearly maintenance program. We have been quoted a cost of 20% per year for system maintenance. However due to the modularity of the software, it appears that whenever a new feature is added it becomes a new sub module at additional cost. Is the yearly maintenace program really worth it? When you get an update, what is normally included in it? We are presently evaluating NF to determine it is a good fit for our company. However the module and sub-module structure and pricing for each and every feature seems excessive. Why not have a complete module with all the features included for one price? That way all the updates for that module would be inluded and may justify the cost of the yearly maintenance. Also is this amount of 20% normal for NF and the industry? Thank you in advance for your comments as they will help us make a decision of the purchase of NF.

Hi John The modularity generally works the other way around, in that our customers dont always buy every area within a module. For example, some people dont buy sales order management because they only invoice, so they only purchase the sales invoices area. This means that they are saving money and do not pay upgrade fees on areas that they do not purchase. New features are not always added as sub modules, but added within others that already exist. Updates include fixes and functionality enhancements. By paying the % per year you should get the new features within your purchased areas, as well as updates for ‘free’ (excluding implementation costs, or maybe the price you ahve been given includes this - Im not sure). When updates are released you should get them for all areas, and in fact, no matter what licence you purchase initially you get all functionality of the Navision product (excluding addons like webshop) its just that your licence wont allow you do get into certain areas. Some solutions are prices per user and per module, where as Navision is a functionality based pricing, and all users can get access to all functionality. This means that for a certain number of users Navision is most definitely cheaper to add functionality across the userbase and adding one or more extra users is always a multiple of the number of users, not what functions they will get access to. Craig Bradney Project Manager - Technical Navision Solutions & Services Deloitte Growth Solutions Deloitte Touche Tohmatsu P:+61-2-9322-7796 F:+61-2-9322-7502

Hi John, Most of my customers have found the modularity of the software a definite advantage. As it has enabled them to implement the system in phases. For example Year 1 - General Ledger, Accounts Receivables, Purchase Invoicing and Inventory. Then as their users get accustom to the system , perhaps Year 2 - Purchase Ordering, Fixed Assets etc. This has meant to a number of customer an opportunity to see ROI in nice small manageable chunks. I concur with Colin that “New features are not always added as sub modules, but added within others that already exist” Another example is one of my customers have been a happy Navision user since 1997 and have been on that release (1.20) up to today. They have always paid their annual Navision maintenance fee. Therefore by doing so they will be upgraded to the latest version i.e. 2.60 for Free!! , they also know that there are LOTS of new features that have been added to the system. Which they will be able to take advantage of if they choose. I am not sure about what is the “norm” %: in terms of Navision across the various countries. However from what my customers have commented to me, regarding other products that they looked at, before choosing Navision. It would appear that within the ERP software industry percentages have ranged between 15-20% . I trust this helps you make the decision to choose Navision, and I wish you well in your implementation, irespective of which product you finally choose. Wendy _________________________ Wendy O’Connor Practice Leader CSB Systems Calgary, Alberta T2R 1L9 T:(403) 233-2955 x 224 F:(403) 233-2957

John From my experience annual maintenance can run from 15-25%, Out of the 20% there will be a cost to your NSC from Navision, probabaly around half. For this other half the NSC provides you with whatever services fall under the contract, telephone support, installation of upgrades free, etc, etc. I have worked with some US software where they have modules, but not granules. With The Sales Order Processing module you paid 18% of the full price of the all singing all dancing Sales, this was whether you used the functions such as quotations, blanket orders, direct pull through to production, back to back purchase ordering, etc, etc. So in affect the customer was paying for these features to be supported and upgraded even though they never used them. The Navision model is much fairer on the customer. Good luck on your choice, make sure it is right for you, and then spend the time and money putting it in right Regards Steve

John What you should consider is this: A Navision Financials installation is made up of 2/3 parts: 1: a Windows Application 2: a Database Management System 3: an ERP solution. IF You choose to purchase the solution today, the price you pay is actually only based on the ERP solution. What are you paying for, when paying the annual fee? First of all you are paying for the maintainance of the ERP solution. Sometimes you actually receives, som great functionality within the granules you have purchased - and sometimes not. What many people are forgetting is that they are also paying a Windows Developer to maintain their Windows Application, so it can utilize all the new features of new operating systems. Also the fee covers the cost os having a Database Developer maintaining and correcting errors within a Database Management system. Consider this: So if you consider buying a solution at say $50.000 and you will be paying 20% in annual fee. Your annual fee will be $10.000. How many hours of real development will you get for $10.000 that will make your solution fully embrase new operating systems, and features - and at the same time maintain and expand an ERP solution? The case described in another reply in this thread about a customer running version 1.20 and now descided to upgrade: The customer got these enhancements to their system: * Full integration to the Internet. * Full integration with the newest Microsoft Office * Full utilization of the COM technologi * Full support for Windows 2000 and Active Directory * Correction of Errors in the Database management system * Correction of Errors in the Client Application * Full support for running their database solution on Microsoft SQL Server * Posibility to opening a fully integrated WebShop * Posibility to establishing a User Portal * Posibility to Integrate with any other company using Microsoft BizTalk Server * Ongoing development of a full integration with the best CRM-solution on the market And we haven’t even begun naming the improvement to the ERP solution!!! Conclusion: * Don’t ONLY consider the granules and their functionality. * Consider what happens whith your solution when Microsoft release Windows XP. * Consider all the posibilities the development sponsored by your annual fee gives you in the future. * Consider how easy it will be for you to start utilizing a new part of the Complete solution - and then start paying for that form that point on. I hope some of these arguments will help you see what you are really getting for you money! Mvh Pc