Huge Discounts On Enterprise VMS Software

By: John Honovich, Published on Dec 10, 2013

A member asked for advice on VMS software for 100 stores with 90 cameras each. His main concern is price, and because of that, he is rejecting enterprise VMS options.

This is a mistake.

***** ********** ** *** software ****** *** ********* do *** **** ********* on *** ********. ***’* look ** **** *******.

** ******* **** ** 100 ****** ** * total ** *,*** *******. Assume * $*** **** for ********** *** ******** and *** ***** **** is $*.* ******* – a *********** *******.

VMS ******* **********

*******, *** *** ********** have ***** ********** ** give **** *********.

*****, ****+ ****** ******** are **** *** *****, financially *** *** *** developer. ******** **** ‘*****’ VMS ********* **** ******* and ********* ** $** - $** ******* ** annual *******. *** ********* for * *** ******* dollar ******** ** * single **** ** **** significant.

********, *********** ** ******. There *** **** ** companies ******** *** ******** and *** **********, *** around *** *****. *****’* little ****-** (** ******* effect) **** ****** *** customers ** **** ** use * ******** ***. VMS ********** **** ****.

*****, *** ****** *** become **** ********* *** ****** ***** have ****** ** ** cameras **** ****** **** mainstream.

What ** **

***** *** *** ** initially ****** ****, *** larger ******** ****** *** give **. ** *** quote ** **** *** integrator, **** *** ********** to ** **** ** the *** ********* ** simply **** ** *** VMS ******* **********. ********, really *** ***** *** make ** ***** ******* for ***** ******.

** **** *******, **** 9000 *******, * ***** expect **%+ *********, **** the ***** ********** *** camera ***** ***** $*** per ******* (******* ** the **** ** ~$***). That’s * ******** / ‘savings’ ** ~$* *******.

*** ***** ********* ***** to ******** ** **** large ******** **** ******* needs *** ***********, ********** and ***********. ******* * heavy ********, **** ** you ***** **** ** pay * ****** ******* over ***** *** ********, is ****** ***** **.

But ******

*** ******** ********** ********** VMS ********* **** ** getting *** ******** ** the ********* *** ****** fees / ******** ‘***********’ licensing. **** *** ** willing ** ********* **** ******* *** the ********,******* *** *** ** make **** ** ** the **** *** **** you **** ** ******* software.

** **** **** *** directly *** * *** discount *** **** ********* / ********** ****** ******* costs ***** ** *** beginning.

Different **** *******

***** ***** ********** ** cameras *** **** ****** discounts, *** ***** *** typically *** **** ****** than **** ********** *** companies **** *****. **** is ****** ******* ******* have **** ***** ** the ************* *** ********* include *****-**** ********** **** must ** *******. ****, most ******* *** ********* available ****** ** ******* significant ********* *** ** MSRP. 

Comments (6)

Yes make sure you negotiate the annual maintenance. Whilst you may get the discount on the upfront cost, the annual maintenance will be abased on the full purchase price per license. I have had one VMS vendor offer a 1 for 1 swap to move from current system to theirs without laying down any money. The deals can be made if you have volume and short time frame but make sure you ask questions until you cant ask any more.

"I have had one VMS vendor offer a 1 for 1 swap to move from current system to theirs without laying down any money."

Very interesting. Thanks for sharing!

Give away the blade, sell the razors :)

"So push hard and directly for a big discount but also negotiate / anticipate future upgrade costs right at the beginning."

May be all of us should push hard/negotiate IPVM pricing ? :)

Sure, if you purchase in volume, like any business, we give discounts. Our group plan pricing structure is an example of that.

One critical motivation enterprise VMS companies have in getting new accounts is the potential for annual fees / software ‘maintenance’ licensing. They may be willing to dropprice even further for the licenses, but they may try to make this up on the back end when you want to upgrade software.

john are you implying that there is no such thing as a free lunch or even a discounted one for that matter... :)

Well, in all seriousness, I do think in this case, there is a 'free lunch'. It is not as if the VMS developer is going to screw you later on because of this. It's just that once they are in to an account, they have more leverage / negotiating power. Worse case scenario, you get the big discount to start and then pay full price for the upgrades thereafter.

This is more of a general warning, as many end users forgot or object to later license costs. See VMS Annual License Fees - Love 'Em or Hate 'Em? and Why VMS Annual Fees are Unfair

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