« Return to News

How low can you go? ISM beats drum for transparency on cost of software license renewals, updates and technical support

How low can you go? ISM beats drum for transparency on cost of software license renewals, updates and technical support

Having been awarded a framework contract in 2014 from the UK government, with one of the reasons cited as they have low revenue costs as there are no ongoing licence fees and low technical support costs, PSIM pioneers ISM are beating the drum for transparency in the lifecycle costs – so clients are aware upfront of what they will be expected to pay from their capital and revenue budgets.

Explaining the flaws in the current pricing model, Stephen Smith, Managing Director said: “We made the decision in the early months of founding ISM that we would not put clients in the unenviable position of budgeting for a capital expenditure only to find a raft of renewal and licencing costs that would have to be met from their revenue budget. What we have found in recent years is that clients are unaware of an all too common practice; namely a business will charge what on the face of it seems to be a competitive capital cost for the PSIM, only to then charge a fee of 18% to 50% per annum of the cost of the software for the renewal of the licence, system updates and technical support. ISM typically charges an annual fee of less than 1% of the initial cost of our Genesys software. This includes 24 7 technical support and system updates. I recently came across a business charging nearly £27,000 a year for the renewal of their software licence with no level of technical support. This was in addition to the software cost of £148,000. A number of clients have recently taken the decision to have their security control room management software ripped out in favour of installing Genesys. Why? Enhanced functionality aside, some instance show that they were being quoted over $500,000 a year alone for licensing and software support.”

Smith offers the following advice for evaluating the total cost of ownership of your PSIM and not just the initial capital cost:

  • Ensure the companies pitching state in writing their annual fees for the renewal of your licence and, if technical support is provided, what it entails and what it costs over a 5 year period.
  • Will you be expected to pay for system updates too and if so, how frequently will these updates occur and, what are the fees? Is the cost a percentage of the initial capital outlay?
  • Insist that the software will be supported for a minimum of 10 years
  • Sweat the small print pre-contract so you don’t expose yourself to risk that could have a catastrophic impact on your organisation. A small number of software providers build a timer in their software. This automatically shuts the software down if your annual renewal payments have not cleared.
  • Don’t evaluate a project based solely on the initial capital cost. What might appear a competitive initial cost could actually be the tip of a very big iceberg when you rack up the other additional costs for updates, licence renewal and technical support. Work out the lifetime cost. Don’t discover when you’re too far down the line that the cost of installing the system is in fact lower than the ongoing annual costs!

Smith said: “We have lost count of the number of red-faced security managers berating a competitor for holding a gun to their head – “pay the ongoing fees or we won’t support your system”. Some public bodies are now having their PSIMS ripped out because they cannot afford to maintain them from revenue budgets. PSIM providers must be 100% transparent and fair or risk going out of business on the back of an army of disgruntled customers.”

ISM appoints new Business Development Manager

Intergrated Security Manufacturing (ISM), a leader in the design, development and manufacture of Physical Security Information Management (PSIM) technology, has appointed Aaron Plant as Business Development Manager. He joins ISM with more than 25-years’ experience in the security industry, including spells at Quadrant Security Group…

Dee Blick interviews Petri Hitches, ISM’s International Sales Manager

Dee Blick interviews Petri Hitches, ISM’s International Sales Manager Petri has 20 years experience in the security industry; most of it spent working in the Far East. ISM had completed a PSIM and cell call project in the Middle East, a PSIM for an Oil…

Good things come in Compact packages

It has been a busy six months for door entry specialists ISM with their Compact system “flying off the shelves” according to Geoff Pye, Commercial Director who commented, “We’ve had tremendous success with our Compact door entry system in the London boroughs and have recently…

ISM announce appointment of new MD

Stephen Smith is the new Managing Director of ISM taking over from David Jenkins, founder of ISM and the original PSIM pioneer. Smith’s appointment coincides with his 25th year at ISM and follows a seven-month succession-planning period. Smith said: “I have big boots to fill…

David Jenkins, the Original PSIM pioneer retires

David Jenkins, Managing Director, ISM is retiring in the same year that ISM celebrates its 25th anniversary. Jenkins has built an enviable legacy for the British born and bred manufacturing brand. Stephen Smith, Sales and Marketing Director will become the new Managing Director. When asked…

Understanding PSIM

PSIM or physical security information management is a key tool in the future of business.

ISM Celebrates 25 Years’ Dedication to the Door-Entry Sector

‘Reliable…built to last… genuine value for money’ – three phrases companies are keen to pin to their door-entry products. But how many door-entry systems withstand the rigours of two decades and counting? As it celebrates 25 years of manufacturing excellence, door-entry specialists and PSIM pioneers,…

PSIM Pioneers ISM Report Successful Event in India

India is the latest country to fall under the spell of ISM, the UK based PSIM pioneers; inventors of Genesys Security Control Room Management System – the patent protected system that renders servers redundant with its unique migrating driver technology. Stephen Smith, Sales and Marketing…

Stars, Stripes, Snow and Success for ISM Stateside

Despite 3 feet of snow settling on New York and, important demonstration kit being held up in customs, ISM, the UK-based PSIM Pioneers reported ‘an overwhelming vote of confidence’ from delegates at their two packed seminars held in New York City and Washington last month….

PSIM Pioneers ISM announce strategic OEM partnership with Indian Defence Company OIS Advanced Technology

At recent Defexpo India, Steve Smith met with the Minister for Home Affairs – Mr Sushilkumar Shinde whilst on the OIS Advanced Technology Stand, where a Genesys solution was on prominent display.  Global brand ISM, the leading designer and manufacturer of security management software has…

‘Great British Brand’, ISM Forecasting 35% growth in 2014

ISM, the UK based pioneers of Genesys security control room management systems has started 2014 bullishly forecasting 35% growth in 2014 on the basis of doubling orders in 2013. Stephen Smith, Sales and Marketing Director attributes this exceptional growth to: “Our unflinching commitment to R&D…

Why Your Business Will Benefit From An Intercom System

Intercoms add security and communication to a building, and after installation, they’re also low cost.

Getting to grips with PSIM Software

  Physical Security Information Management software, more commonly referred to as PSIM, integrates unconnected devices and security for your home or business, making them more manageable and usable. Your security is likely to be manufactured and maintained by a variety of different suppliers, purchased over…

ISM completes another door-entry upgrade for two London high-rise blocks

ISM continues to dominate the local authority and housing association door-entry market with two more high-rise installations in south London tower blocks at Amesbury and Durrington. Working in conjunction with installation partner, SCCI Alphatrack, ISM designed, supplied and commissioned the project for Lambeth Living, one…

ISM set to visit the US to present a seminar-filled week in Washington and New York

As a key person of influence in the security profession, we would like to invite you to attend an event organised by ISM and our USA partner, X7 Systems Integration. We anticipate that is attendees will be working in security at manager or director level or…

National Custody Seminar 2013 – Vital for Gold Sponsor ISM’s ‘grass roots research’

The 2013 event proved to be “an insightful and incredibly useful event for engaging in grass roots research with custody sergeants and inspectors,” according to Gold Sponsor, ISM, pioneers of the award-winning Genesys security control room management system Stephen Smith, Sales and Marketing Director said…

The ‘Ultimate Integrator?’ – ISM Reach Final Stages of Security Excellence Awards 2013

Three ISM integration projects in particular inspired the judges: 1.    Birmingham City Hospital – the hospital can now lock down sections of the site in a split second should an incident occur. 2.    The London Borough of Hammersmith and Fulham – a cost-effective, time efficient…

ISM appoint industry expert Geoffrey Pye to aid overseas expansion plan.

Underpinning the 100% growth target is ISM’s continued expansion into export markets with America, Africa, Europe and the Middle East firmly on the leader board. “We are delighted to have secured the appointment of Geoffrey,” says Smith. “He brings to the table a wealth of…

« Return to News