In Tight Financial Times, Microsoft Dynamics Customers Weigh Value of Maintenance and Support

Each year Microsoft Dynamics ERP customers spend between 15-20% of their software license fees on maintenance and support.

But given the current economy and given that the average ERP system lasts, on average, from 10 to 15 years, it seems to make sense that some companies might want to cancel their ERP maintenance contracts to save money, according to Kevin Cahill, a software selection consultant at Panorama Consulting Group.

In a recent blog post, Cahill said while the idea sounds good on paper, it's not such a good idea in reality. Companies that cancel their maintenance contracts won't have any access to upgrades, bug fixes or access to the latest regulatory changes.

While Cahill was speaking about ERP maintenance contracts in general, analysts and users agree with his assessment as it pertains to Microsoft Dynamics ERP maintenance and support contracts.

Robert Helm, an analyst at Directions on Microsoft, explained that Microsoft offers Dynamics customers two different plans-one for maintenance, the Business Ready Enhancement Plan (BREP), and one for support, the Microsoft Services Support plan.

"The enhancement plan is what you need to have to get the latest updates to Dynamics software from Microsoft and the support plan is what you need to get the problems fixed in your installation," he said. "[Deciding to cancel] is a separate calculation for each."

Helm said for most customers the enhancement plan, which can be purchased through Microsoft or a partner, is the safest way to ensure that their ERP systems stay up to date with regulations and taxes.

"It seems risky to cancel it because you're ...