The first thing that needs to be understood about data protection pricing is the difference between service and software cost. When comparing to their competitors, on a scale between 1 to 10, the price you have to pay for the best service is ten times less than what you would have to pay for a custom solution. Obviously the first choice is going to be easier to make but if you keep adding features to your software or need to use a lot of memory, it is possible to push the total cost up significantly. So it is very important that you are aware of the service costs and the cost of adding in additional features. Learn more here!
Once you have an understanding of how software pricing models work then it is time to move on to looking at the other items that can affect the cost of data protection. There are many things such as server management, which will play a large part in this area as well as any updates that need to be made to the servers that will affect your customers data and the ability to access it. This then becomes a function of your IT staff, as they will have to update these systems on a regular basis. Of course if you are using a third party company to provide this support it will be their responsibility to update your security controls so that they meet current standards. They may also offer some additional services that can add to the price such as security testing, training and vulnerability assessment.
One thing that tends to stay steady throughout all of these various areas is the level of support that each of your software vendors can provide for you. If they know what they are doing, it is not surprising that they offer great support at very competitive prices. Of course if they do not know what they are doing then you will have to check with others in the industry who have used them before. It pays to do your homework and you can get in touch with reviews sites and forums. When comparing to their competitors within your niche, there are several points to look for when it comes to support and pricing.
Most of the time you will find that software vendors will include software products in a bundled deal which will include both the service and the licensing fee. These pricing models are fairly common and the reason for this is because they are a two edged sword. While they help to keep costs down by providing you with more product for your buck, the fact is that they do require a significant upfront licensing fee that needs to be paid annually regardless of how much you use the product.
As you can see from the above example the more costly upfront licensing fee is negated by the lower monthly subscription fee. When comparing to their competitors, it should be clear to see which is better for you. In many cases it is obvious that software vendors who charge a separate licensing fee for each user are offering less than the competition. Of course you can expect this to be reflected in the pricing of their software products. You may be able to save quite a bit of money if you purchase the license through one of these vendors instead.
When looking at the cost of customization, it is important to take into account things such as if the software product will continue to grow in future years. If it is anticipated that there will be a large increase in usage then the process can be exponential in nature which will drive up its price. Another important factor that many people overlook when it comes to the calculation of the Customization Pricing Model is the number of licenses being offered. If the company only intends to offer one or two licenses then it is unlikely that you will be able to obtain the service for the amount you need. In order to properly calculate the cost of customization, you will need to obtain quotes based on multiple licenses in order to calculate the average cost. Check out this pricing page.