Doing business these days using software to manage business processes, communicate with employees, customers, and suppliers, and use it for other purposes. Most software requires license activation or acceptance of "Terms and Conditions" before the program can be downloaded, installed, or accessed. There are different types of software licenses, with different conditions, support agreements, limitations, and costs. Users need to understand the basics of software licensing. To ensure a complete understanding of responsibilities and compliance with legal requirements and limitations.
One of the interesting questions our customers ask is, what is the LUSA fee? Why do you have to pay the LUSA fee annually when buying CiMSO Software?
Software costs
The cost of CiMSO software and other software is divided into the following 3 parts:
1. Software License
2. Installation, setup, and implementation training
3. Software upgrade, maintenance, and after-sales service (license upgrade and support)
Part 1 Software License Your software license fee depends on the number of users. How to deploy and any special features or add-ons you want to use.
Part 2 Installation, setup, and training in using the system. (Implementation) system installation service It will be setting up the system for users according to the procedures and needs of each business. as well as fixing bugs or technical problems. In addition to helping migrate relevant data to the new software. This is usually a one-time process and expense.
In general, payment for Software License and CiMSO Implementation is typically proposed to be made in installments prior to the Go-live phase. The number of installments, whether it be 2 or 3, can be chosen based on the project's urgency.
Part 3: License Upgrade and Support (LUSA)
License Upgrade and Support, or what we refer to as LUSA, involves ensuring that the customer's software license remains up-to-date. This includes significant changes or important enhancements from the current version (new versions), in addition to software debugging. CiMSO Software performs upgrades to new versions every 6 months.
The LUSA fee is collected annually, and customers have the option to pay it in a lump sum or divide it into quarterly or monthly payments. Opting for monthly payments incurs a slightly higher cost. The LUSA fee is calculated at 15-20% of the software cost per year and may be subject to change based on the Consumer Price Index (CPI) of the hosting server's country. It may also change due to software-related modifications, such as increasing or decreasing software licenses.
Why does CiMSO have a License Upgrade and Support Annual Fee (LUSA fee)? Why do users have to pay for software maintenance, upgrades, and post-sales services every year?
The services provided in Part 3, or the License Upgrade and Support (LUSA fee), which users or customers of CiMSO have to pay annually, include:
- New Software License Rights (License Upgrade),
- Service fees for system maintenance or Maintenance Agreement (MA fee),
- Post-sales services (Support Service or Help Desk service), such as providing guidance on system usage according to the customer's needs. For example, when customers change internal processes within the organization and require advice on system configuration. Customers can always inquire with CiMSO's team, subject to the service level urgency, for assistance
CiMSO Software requires every user to pay the LUSA fee. If customers fail to make the payment within the specified period, they will be unable to access the system. Paying the LUSA fee not only covers various services mentioned earlier but also serves as an investment in the existing software product or solution. It contributes to the development of new features added to the current software. Additionally, it supports research and development efforts to innovate and create future products. This means that when a new version of the software is released, users will have the opportunity to upgrade for free.
The benefits of having LUSA, in addition to the support services provided by CiMSO, which offer 24/7 user assistance at a service level (please inquire for more details from the CiMSO team), include:
1. Help reduce costs and improve the organization's ROI.
Delays in software upgrades may result in higher expenses. Choosing well-planned and timely upgrade software can be more cost-effective. Investing in your software involves not only the technical capabilities present at the time of purchase but also encompasses all the research and development that follows. Upgrading your CiMSO system immediately can increase your ROI both quantitatively and qualitatively. In practice, older software versions may become a financial burden for the IT department, as personnel need to make an effort to understand hardware, software, and applications. Older versions may require more attention and time for support, leading to increased workload.
2. Protect your organization and maintain uninterrupted business operations.
Upgrading CiMSO software ensures confidence in the preservation of your business, free from unnecessary errors. Older versions may lack critical security updates, new features, and integration with emerging technologies that could be advantageous for business competitiveness. Continuing to use outdated software may pose security risks for any organization. Being in the latest software version helps safeguard your data and avoid problems. Current versions can protect your system and applications from viruses, malware, and/or other dangerous software that can cause damage or steal information, potentially saving time on issue resolution.
3. Emphasize new technologies.
Ensuring that you are consistently using the current version of CiMSO allows you to focus on introducing new technologies that make your existing system more flexible and convenient. This enables you to spend time on marketing and sales confidently, knowing that the system will always support the organization's growth. The cumulative benefits of software upgrades over time ensure that you won't miss out on all these crucial points. New functionalities and enhancements can be advantageous for business.
4.Deducting software license fees and depreciation for CiMSO software.
Users of the CiMSO system can apply the costs and annual LUSA (License and Upgrade Support Agreement) expenses for depreciation calculation. The CiMSO system is considered to have increasing value throughout its useful life since the asset type has no limited lifespan. Deducting software license fees and depreciation for computer software, which incurs an annual LUSA cost, involves depreciating the asset. In cases where there is no limited useful life, tax regulations permit a depreciation deduction at a rate of 10 percent of the acquisition cost for computer software copyrights, as stipulated in Section 4(4) of the Revenue Code (No. 145) B.E. 2527.
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About CiMSO:
CiMSO, is a fully integrated ERP Software for Hospitality & Business Management for...
Lodging – Hotels, Resorts, Lodges, Game Reserves, Apartments
Hospitality – Restaurants, Bars, Clubs, Event Venues
Real Estate – Title Register, Leasing, Timeshare
Retail & Wholesale – Supermarkets, Retail Shops, Trading Stores
Services – Golf Clubs, SPA’s, Hydro’s, Recreational Activities
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For more information or free demo, please feel free to contact us:
E: marketingth@cimso.com
T: +66 2 129 6312,
LINE: @cimsothai
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