Licensing Conundrum

Hi All,

Wondering if anyone has had any luck negotiating with Epicor around reducing their user count.

When we got the system ten years ago we purchased 105 concurrent user licenses, which even then is far too many for a company of our size (I wasnt around at the time but the company had around 200 employees, not all of whom where Epicor users). Now, ten years on, our company has shrank so that we are in total 105 employees and never have more than 35 on the system at once.

We contacted our account manager and the licensing team about reducing the number of licenses we pay for but have been told that as we remove license count any discounts we had will also be removed so that it wont result in us paying less maintenance every year.

I have to say it feels super unfair and a bit dishonest…wondering if anyone has had any success in scaling their system as their business reduced in size? Any negotiating tactics to try?

Cheers

1 Like

I’m assuming that they are referring to discounts based on the number of users and if so, that would be pretty standard for any software company.

Typically as you buy more seats you pay less per seat, again, normally based on grouping, 1-25, 25-50, 50-100, etc for example. It is possible that the 105 was arrived at based on a quantity break and knowing that paying for a few extra seats would be cheaper or at the very least a break even on fewer seats at higher cost. We have at least one product where we have an extra 10-ish seats because having those seats at the reduced rate is the same cost as not so I might as well have them and then if we do expand I don’t need to worry.

I don’t think its to do with price breaks, I asked that question but they said its just their policy to remove discount at a license reduction so that all remaining licenses are charged at list price.

There is no way for your bill to ever shrink. It can only ever go up and up and up

At least that’s my experience

if you drop from 105 to 35 you 'll surely see a decrease in total cost. It won’t take effect until your next renewal of course.

I reduced my count from 85 to 65 and saw a substantial reduction is cost, and nothing was said about discounts. I guess we’ve been paying full price all along.

I will note that being at 65 or above puts you in the Enterprise group and you get ‘better’ service and pricing. But you are dropping so low, I think you’d more than make up for it.

And the process was easy - a little paperwork is all. If your CAM says otherwise, go above their head.

Thats interesting Mike, I had the information from the licensing team with my CAM copied in. Are you cloud or on premis?

On prem