FACTSBUDGET AND EXPENSE:20%80%BUDGETRunning ExistingIT SolutionIT Enhancement
FACTSThe Biggest Expense of the 80%:20%60%Annual Maintenance Contract and Depreciation
Most Expensive AMC are Software:100%DP +AMC80%DP +AMC60%DP +AMC40%DP +AMC0%DP +AMC1st yr. 2nd yr. 3rd yr. 4th yr. 5th yr.20-25%CAPXOPEX60% expense – after depreciation period, the asset value becomes zero. You stillcontinue paying maintenance (20-25%) on original value of the investment.
BUSINESS VALUE of ERP Maintenance:1st Year2nd Year3rd YearAfter(3)YearsMin.BusinessVALUEEnvironment is stabled.All functions are already available.Most of the time, technical support /resolutions from AMC are notsatisfactory.Min.