IT managers are increasingly frustrated with the large amounts of money they are paying to apps vendors for Maintenance and Support (M&S). While M&S fees go up, service usage often goes down, and upgrades don't add significant business value. In response to these challenges, an industry of third-party M&S providers has emerged. This research note discusses the third-party M&S model. Specific coverage includes:
- An analysis of the importance of M&S revenue in the enterprise apps industry.
- A list of the main vendors in the third-party M&S industry and an analysis of the limitations of the M&S model.
- The benefits that companies can achieve by using a third-party M&S vendor.
- The risks of using a third-party M&S vendor, and relevant risk mitigation strategies.
- Recommendations on when to upgrade and when to use a third-party M&S provider.
IT managers that are unhappy with the often excessive money they are paying for software M&S must consider replacing the apps vendor with a third-party provider. When third-party M&S is the right fit for the enterprise, it can lead to savings of 50% or more.
