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Understanding Total Cost of Ownership for UltraMap: A strategic approach to software investment

Blog , Product Features
17 October 2024
Total cost of ownership for UltraMap

In today's dynamic and cost sensitive landscape, businesses must look beyond the initial purchase price of software to understand its true cost over time. This is where the concept of Total Cost of Ownership (TCO) becomes crucial. TCO encompasses all direct and indirect costs related to purchasing, deploying, maintaining and operating software throughout its lifecycle. For UltraMap users, understanding TCO is crucial for informed decision-making, helping to balance initial costs with ongoing benefits and long-term expenses, ultimately ensuring smarter budgeting and maximizing the value of your software investment by picking the right licensing and maintenance scheme. Explore the available UltraMap options and see how each one affects your TCO, helping you to make the smartest investment choice.   

UltraMap Licensing Options: From Flexibility to Long-Term Value


Purchasing perpetual licenses: Customers can purchase UltraMap as a one-time investment, which offers the lowest initial cost. However, this only includes the software version available at the time of purchase, with no automatic updates. Customers can add a maintenance package to receive continuous access to the latest UltraMap releases and comprehensive support. Without this package, upgrading to newer versions requires a separate purchase of an update, which is always more expensive than maintaining an annual maintenance contract along with the purchase. 
Opting for subscription plans: For customers seeking flexibility, subscription plans are available on a monthly or annual basis, with longer terms offering reduced rates. Subscriptions provide access to the latest software versions and include the same level of support as the maintenance package—specifically, telephone and email support, along with continuous updates to the latest releases. Short-term subscriptions enable quick responses in specific situations, long-term subscriptions provide a cost-effective way to use the software and benefit from ongoing new releases.

Practical example: Evaluating TCO for UltraMap Essentials (48 cores) over 5 years


To illustrate TCO in practice, we use UltraMap Essentials (48 cores) as an example. In the graphic below, you’ll find a comparison of different licensing approaches over a 5-year period: On the left-hand side, we examine the costs associated with purchasing a perpetual license, and on the right-hand side, we explore subscription options that differ in the lengths of individual renewals, all covering a total of 5 years
UltraMap Total Cost of Ownership
  • One-Time Purchase + One Paid Upgrade: A one-time software purchase offers the lowest upfront cost, with no ongoing fees. However, most customers eventually opt to upgrade the software to access new features or bug fixes. In this scenario, the customer upgrades from an outdated version to the latest release. If there is a significant gap between the purchased version and the latest one, the upgrade cost can be similar to—or even higher than—the original purchase price.

  • One-Time Purchase + Two Paid Upgrades: In this second scenario, the customer pays for upgrades in years 3 and 5. The cost of these upgrades depends on the specific software versions released during that time. Neither this approach nor the first includes telephone or email support, and both typically end up costing more than an annual maintenance contract. Additionally, with each release of relevant new features, customers must purchase upgrades again.

  • One-Time Purchase + Maintenance Contract: This option includes an annual maintenance contract that covers all upgrades and provides ongoing support. While it requires a slightly higher upfront investment, it proves more cost-effective in the long run compared to purchasing upgrades separately.
  • Subscription Options: On the subscription side, we present three scenarios, each calculated over a 5-year period:

    • In the first, the subscription is renewed every 6 months.
    • In the second, it’s renewed annually.
    • In the third, a 5-year subscription contract is signed upfront.

As shown, the longer the subscription commitment, the lower the annual cost. Opting for a 12-month subscription renewed annually for 5 years, result in a total cost comparable to a one-time purchase with paid upgrades, but with lower upfront expenses. For subscription terms longer than 4 years, the overall cost is even lower than purchasing the software with an annual maintenance contract, making long-term subscriptions a highly cost-effective choice. 

By evaluating both perpetual licenses and subscription options, businesses can select the best approach based on their specific needs, budget, and long-term objectives. Whether you choose a one-time purchase, in combination with upgrades or a maintenance contract, or a flexible subscription plan, understanding TCO helps in balancing initial costs with ongoing benefits, ensuring you maximize your software investment. 
Ready to explore UltraMap licensing options? Contact us today to discuss your needs and find the perfect solution that aligns with your business goals.
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