Selling Model
Particularities of Up ! Application System
Our positioning is to allow large firms aligning the information system on their corporate strategy.
Up ! Application System allows to deciding people making the following choices in order to easily and quickly tune their entrepreneurial tool:
- The organization, the working methods and the processes.
The corporate culture is then preserved or adapted.
- The technological or technical target.
Depending of its IT policy and its existing.
- The working environment.
The application is declined to the language and to the habits of the employees. Their culture is respected, what is essential to maintain their motivation when they are coming from different historical or technical horizons.
Depending on the opportunities and the threats of its environment to which the firm reacts, there is the possibility to reconfigure its application system either at the level of an application or at the level of some business components. The firm is thus more reactive without starting long and costly projects that are sometimes old-fashioned at the time of the delivering is running.
There is no correlation between the definition of the business, which is stable in time, since it results from the strategic planning of the firm and its culture, and the particular setting-up of the business, which is instable in time, since it is jeopardized by arising events from environment.
Selling Model Chose By Vertical Software Vendors
The selling model of most of business application software vendor are the following:
- High-priced licenses.
Their meaning is that the firms realize a long-term investment that is then amortized on six to ten years.
- Consulting that it is hard to avoid
The objective is, for one hand, to lock the client in the maximal use of functionalities, what is increasing the exit barrier, and, on other hand, to push the firm from time to time to be adapted the lacks of the vertical software.
- Costly upgrading.
The yearly maintainning fees covers only the corrections of the version bought by the client. When upgrading to a new version, which could be imposed to the client, that eventually admits some functionalities that are really useful for the client, the last one must repay a part of its licenses.
This selling model is old-fashioned for the following reasons:
- Horizon of the strategic planning of the client
The horizon of the strategic planning of the information system is no more six to ten years due to the reactivity issue coming from the opportunities and the threats of the environment.
- The vendor is catching the value.
The strategy of catching the value is short-term and middle term oriented, for which the pricing policy for the licenses. To find a long-term relay, it uses the resale of licenses and services coming with the imposed migrations.
This strategy that is not a win-win one implies over expenses on the long-term and strong constraints for the client and a loose on the potential of catching value for the vendor on long term.
Selling Model Chose By Up ! Company
The selling model chose by Up ! Company is different since we have as a principle to share the value created while setting up Up ! Application System in a long-term-oriented win-win way.
Here is the principle:
- Compact-priced licenses.
The principle is to slash the part of Investments of Total Cost Of Ownership (TCO) in order to be able to shorter the amortizing of it in time.
According to results got by financing simulations on real projects:
- The total amount of investments can be decreased by 20 % on average.
Are accounted as investments the acquisition of computers, database software, generic vertical software or the same, their integrations and the work of the WPC / WPO.
- The Return on Investment (ROI) of Up ! Application System is 18 months on average.
Are accounted as operating costs the overall fees due to Up ! Company whatever be the nature.
- Invoicing according to real use.
The real use is measured through business working units. It is limited by a bottom-and-top evolution window that is clearly stated in advance. The invoicing is regular since quarterly. It is coming from adjustments of your business model or your entrepreneurial tool.
- Global maintenance.
With the concept of Pay once, use ever, you dispose of global maintenance that beholds:
- Technical support.
- Technical updates.
When an anomaly is discovered or when new drivers are available in response of emerging new standards or evolution of one of them.
- Functional updates.
When asked evolutions are integrated in a generic release or when Up ! Company brings new ones by itself.
The cost of this maintenance is similar to the maintenance perceived by any software vendor.
It exists two independent versioning, a technical one for Up ! Virtual Technical Machine to follow technologies and a functional one for Up ! Virtual Business Machine to follow the state of art in the business lines.
These two versioning are dependant, which allow you choosing the version upgrade or not according to your IT policy and tour real needs.
The change to one of the two versions is possible with just a simple call for any licenses that you have already bought and that are include in the global maintaining contract.