Pricing Model and Structure for Saas Solutions

We sell our solutions on a SaaS Model
(SaaS stands for Software as a Service)

The SaaS model means that:
  • You do not pay for the development of the solution
    (We make the investment on your behalf)
  • In order to use the solution, you must rent it from us at a monthly fee.
  • Since you rent the solution form us, we take care of the server infrastructure involved.
There are 3 components that determine the monthly cost of the solution:

The cost of the solution rental is determined by the cost of development to us.

After we have gone through an Analysis process, we would provide you with a quotation on the monthly solution rental cost based on our estimated development cost.

Once we have quoted you for rental and you have accepted our quotation, the rental cost does not change. Rental remains the same for the duration of the rental period. (Exceptions are when the scope document changes before the rental commences in which case the quotation and agreement must be reviewed.)

The good news is that you would know how much you are in for from the outset!

Even though this is a rental solution, you are not locked in. You may opt to Buyout at any time.

Each solution is hosted on a dedicated Virtual Machine on a Cloud Platform at a Dedicated Internet Service Provider.

We have relationships with approved hosts all over the world. The host we choose for your solution would always comply with strict requirements to ensure that you get the best service level.

We would provide you with a quote on hosting, which would include management of the host, database, backups and disaster recovery.

Your hosting cost is therefore not just for hosting, it is for the entire management of the hosted solution.

Hosting cost may increase when your business grow and you require more/faster resources. Hosting cost may also be revised annually, but this is done in consultation with you.

Custom Solutions require a certain amount of support. We offer support on the solutions based on your support requirements. This would depend on the availability and response time that you may require as well as the level of administrative user in your business.

We offer support to your system administrator who acts as your primary point of contact, the system administrator provides support to the rest of your company. Support would be quoted for initially and may be revised later as your support requirements increase.

Support does not include any further development work, but it does include the correction of bugs in the system that were not identified during the testing of the solution.

Minimum Commitment

Since we make a significant investment on your behalf, we require that you rent the solution for at least 18 months after commencement of the rental. After that you may cancel with 1 calendar months' notice, if you wish to cancel but take continue to use the solution, you need to exercise the buyout option.

Further Development

The advantage of custom software development is that you can add further features on a later stage when it is required.

When new features are required there are two possible pricing models:

  • Small Alterations / Customization
    Small developments / alterations / customization are normally billed for on a time and materials basis. Examples of such are additional reports, minor code changes, dashboards etc.
  • New Functionality / New Sections
    When large new sections are added to the solution, the analysis and quotation process is followed and and a new rental fee is established. This will follow exactly the same process as for a new project.

Buyout Option

Our intention is not to lock you in. We offer a buyout option which may be exercised at any time.

When you exercise the buyout option and once we have received full payment, you immediately gain full control over the source code and database and the hosting environments.

The buyout option cost equals 1½ year's rental fees. Rental fees paid before exercising the buyout option cannot be deducted from the cost of the buyout option.

Advantages of this Pricing Model

  • No Development Risk
    Spending a large amount on custom software development is not a joke to a small or medium business. There is always the chance that the development might fail or be done really badly. With this model, there is no risk. We undertake the risk of development.
  • No Capital Outlay
    The cost of the solution is an expense, not a capital investment item. Therefore it does not increase profits on the books while in reality it impacts on the cash flow.
  • No Servers or Infrastructure
    You never have to worry about servers or maintaining the servers. You do not purchase server infrastructure or spend money on server management staff.
  • Same Gain, Less Pain
    A Small or Medium business can gain the tools required to set themselves apart in their industries without huge spending.
  • No "Per User" Fees
    Many SaaS solutions are sold on a per-user model which causes cost to rise as your business grows.
    Our model ensures that the growth in cost is minimal when additional staff use the solution.
  • Buyout Option
    If you have outgrown the SaaS model and it is finally time to take over the controls, we offer a buyout option that you may exercise at any point. This will give you the full source code with full control over your solutions. You are not tied in permanently as you would be with other SaaS solutions.

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