Prices for ETRM/CTRM solutions haven’t ever really increased…is that about to change?

Having been involved in the ETRM/CTRM market for almost 25 years, most of those as a market analyst, I’m struck by the fact that license prices haven’t increased much, if really at all, for almost the entirety of that time.  Back in the mid 90’s, when I moved from having been on the buying side to the vendor side, full featured ETRM systems usually listed for anywhere from $25-$40k per seat under a perpetual license agreement, with support and maintenance costing around 20% per year of the total “list” license amount. Though nobody really paid list prices as discounts were readily given on the per seat charge, the S&M fees were rarely if ever discounted as those were the dollars that really supported the vendors operations (license fees were one time, S&M are forever). Today, those same or similar systems may have a slightly higher list price, potentially up to $50k/seat, but again, nobody really pays list.  Further, even support and maintenance fees have become more negotiable, not the percentage rate which is still almost always around 20%, but the base on which they are calculated…often they are now based on the negotiated license fee or some discount from list… continue reading

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