Business System Consultation Center - Our Business System ColumnVol.165 2025.07.01 Takahashi Minoru

Cloud is also an effective way to lock your system company into your service

Thank you for your interest and continued support.
This is Takahashi from the Marketing Plan Research Laboratory.


Regarding System Maintenance Contracts
I feel that the general perception among users—and many company presidents—is roughly as follows:
・You must pay maintenance fees every month or every year
・The money is non-refundable even if no maintenance issues arise
・Maintenance fees cannot be applied toward system development costs for modifications or improvements
・Consequently, they view it as an unprofitable expense
・Furthermore, since fixed costs can be a factor in financial strain
we would prefer to avoid maintenance contracts if possible


As many company presidents point out,
maintenance is indeed a source of fixed costs, and when viewed annually, the amount is by no means insignificant.
If you have no errors or issues and feel confident about long-term maintenance,
I think it might be a good idea to forego a maintenance contract.


However, to say that a maintenance contract is a transaction that is unilaterally disadvantageous to the user
that is not the case.


When a vendor or system company receives a maintenance request,
not only perform the actual maintenance work,
they implicitly assume the following responsibilities at the same time:
・We must never forget about the customer
*This may seem obvious, and you might wonder how anyone could possibly forget a client, but
　　after 10 years without any transactions, memories and records inevitably fade.
・For the reasons mentioned above, and to maintain the stable operation of the system,
it is essential to maintain an in-house team of system engineers
*Maintaining an in-house team of SE staff means not only ensuring we have enough personnel, but also
　　it also means “we need to keep specific SE personnel tied to the company so they don’t run off”
　　(lol)
・During the maintenance period, it is necessary to preserve the maintenance environment within the company
・It is necessary to continue recording, accumulating, and sharing maintenance know-how


If you choose not to enter into a maintenance contract and perform maintenance in-house,
all of these must be established and maintained within the user’s own company.
If you do not outsource maintenance, you must select personnel from among your employees to perform maintenance,
and you will likely need to retain those employees to prevent them from leaving.


A maintenance contract is where the vendor takes on these responsibilities.
Considering the labor costs involved in diverting personnel who could otherwise be dedicated to core business operations to maintenance,
it’s fair to say that maintenance fees from most system companies
.


To summarize:
・If you feel the cost is too high, canceling the maintenance contract is one option
・If you want to keep your current system vendor tied to your company long-term, a maintenance contract is very effective
.
I hope this information is helpful as you consider your options.


That's all, Thank you for reading.

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