Getting real value from software support

Martin Biggs at Spinnaker Support explains what connects a toaster, a coffee machine, and your IT innovation budget

 

What if we told you that you get more warranty on your toaster than you do on your multi-million-pound software system?

 

That’s the truth. When you buy a new software licence, you might get one year only to notify the vendor of any software deficiencies – this is essentially their product warranty.

 

The fact that a cheap kitchen appliance comes with more guaranteed uptime than your firm’s operation-critical software – which you need to handle everything from accounting to risk management and compliance – is shocking.

 

Of course, the reality is that you don’t just rely on your software’s warranty like you rely on your toaster’s. You purchase a support and maintenance package with your software, and the cost is almost baked in for many organisations because it’s non-negotiable. You’ll also probably buy it from the vendor themselves.

 

But it can still be illuminating to think about your software support the same way you’d think about other purchases – especially when you consider your IT innovation budget and ask yourself whether you’re really getting value for money.

 

The coffee comparison

So you’ve got a support and maintenance contract for your software. It’s part-and-parcel of relying on vast and complex ERP systems. You need that critical peace of mind that if anything goes wrong with your system – say, if a new vulnerability is discovered – that there’s a reliable team of specialists on hand to get you back up and running, keeping you secure, productive, and compliant.

 

Let’s stick with our household analogy for now. Say you buy a new coffee machine. It costs £50 – it’s a bargain, really. But of course, you have to buy branded coffee pods, and before you know it, you’re spending an additional £50 a month to drink the coffee from your machine. It’s the same amount, per month, as the machine’s initial cost, over and over again.

 

How does this relate to software support and maintenance?

 

Back to your software supplier. So, you’ve bought your vendor’s support package. It might cost you around 20 per cent, per annum, of your software licence fee. It is going to increase every year, in line with inflation. Before you know it, the cost of your support contract exceeds your original licence fee. It’s not very often that a multi-million-pound licence fee pales into insignificance.

 

If this sounds a bit like a razor-and-blade business model in action here, it’s because it is.

 

The innovation question

Most enterprises have a huge sum earmarked for IT. With this in mind, you’d expect that you’d have the resources to invest in transformative digital innovation plans.

 

But the reality is that more than half of the average technology budget is spent on maintaining business operations. And with so much consumed by ever-rising fees and inflation-driven licences, less than 20 per cent is spent on innovation projects.

 

When so much of this budget is diverted towards ‘keeping the lights on,’ IT leaders have to look, critically, at whether this maintenance spend is truly working hard for them. This is especially true when this support spend comes, as it often does, at the expense of transformation projects that will improve competitive advantage.

 

The innovation challenge is compounded by the way the software vendors do business with their restrictive policies, and requirements for their customers to jump through hoops to access top-tier support. Take, for example, how the vendors manage their major software upgrades. Do these upgrades always bring value to their customers?

 

No. It’s a revenue-driven imperative that leaves software support customers on the back foot. Vendors may lure their customers into upgrading with the promise of next-generation technologies and security features. But we’ve seen before how this backfires. Just this year, one major software company changed the goalposts for accessing its AI and sustainability features – after many customers had embarked on the hugely expensive, resource-heavy, disruptive process of upgrading.

 

This change left many long-term software customers feeling deceived. And who can blame them?

 

Diversifying software support

Upgrading isn’t the only area where software support customers can be left feeling shortchanged.

 

Security and vulnerability management is non-negotiable. Many organisations are finding themselves exposed and vulnerable with their legacy software systems, as vendors decide to pull the plug on vital security support for these older models.

 

For the software customers whose environments are supported by their vendor, the approach to security looks something like this: patch management, followed by bulky and resource-draining security updates which demand excessive manpower and time to implement.

 

This one-size-fits-all approach often overlooks the unique needs, industry specifications, and compliance demands of individual organisations. Instead of being boxed into vendor-mandated security patches, organisations deserve a more tailored security and vulnerability strategy.

 

This approach alleviates the burden on internal teams, saving them from the constant scramble to apply extensive patches, and allowing for more targeted and effective vulnerability management. And what does that mean? A more secure and compliant future, unshackled from the restrictive demands of vendors, with IT teams freed up to invest their resources on – you’ve got it – innovation projects.

 

Rest assured, there’s a solution. One strategy is to not rely solely on a single software vendor for your support. Diversifying your support and maintenance can be transformational. This is exactly what third-party support providers offer.

 

A third-party support partner offers an escape from that model that has you spending half your IT budget on day-to-day operations. These contracts, for starters, are almost always 60 percent cheaper than the in-house support offered by software vendors.

 

You’ll also work with a team that has no business imperative to change or upgrade your business environment unless you want to. Still using legacy software that is highly functional and secure? No problem. Your support partner will ensure it stays that way – offering you a bespoke approach to maintenance, vulnerability management, and customisations.

 

It goes without saying that with a partner like this in your corner, your organisation can push closer to innovation.

 

Maximising the value of support

The path forward is clear: a move away from restrictive vendor models, a shift towards more versatile third-party support systems, and a renewed emphasis on allocating resources effectively. Thanks to those extended warranties on our cheap household items, we can rest assured that if something goes wrong, we’ll get the product support we need. 

 

We’ve come to settle for less when it comes to our business systems, and this needs to change. In the end, it’s about maximising value, pushing innovation, and ensuring a secure and streamlined operation.

 

So, the next time you’re toasting a slice of bread, take a moment to consider – are you truly getting the most out of your investments, whether in the kitchen or in the IT department?

 

---

 

Martin Biggs is VP & GM EMEA and Strategic Markets at Spinnaker Support

 

Main image courtesy of iStockPhoto.com