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Cetrus Blog

Software Billing is on the Rise

Posted by Cat McGuire on Jul 18, 2018 7:56:09 PM
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We have seen this before. A company will come to us with a single question: How many licenses do I need? Our Activity Monitor Plug-in easily answers that question (and several others) with application monitoring.

However, many people do not realize that Cetrus Process Meter (CPM) also generates profit with Expense-2-Project (E2P) software billing. Sometimes we get so focused on a single problem, we forget to think about how an entire process can be improved.


In an Autodesk Redshift blog post Jeff Yoders lists “Software Rental Costs” as the number one expense that AEC firms can pass along to clients:

The costs of doing business for a small architecture firm can threaten to blow the profit margin of even the most lucrative projects. …renting software opens up the opportunity to pass software-access costs to clients by including them in project estimates. (Yoders, 2013)

Cetrus takes “project estimates” to a whole new level by combining precise application use monitoring with software billing. E2P works with Activity Monitor to provide the exact amount of time a user has been active on an application for every project they work on.

After a couple weeks of collecting Activity Monitor data, our customers see exactly how many hours their employees are spending on expensive applications. We tell them to convert those hours to real dollars and imagine adding those dollars straight into their pockets.

Some companies have been resisting software billing because they are concerned that clients will be unhappy with the additional charge. The problem is that the AEC space has extremely high costs, so creating a profit margin large enough to feed company growth is difficult. It makes sense for companies to look for every possible way to save money and increase profits.

To put your mind at ease, Uri Eliahu, the president of ENGEO states:

Our customers have never questioned the additional software fee. The E2P software billing is small compared to the total invoice for engineering services, and clients are generally aware of the high cost of software.

Don’t leave money on the table. Easily generate additional revenue by treating software like an asset and billing application use to projects.

Sign up for a risk-free 30 Day Free Trial today!

 

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Topics: Trending, Strategy and Planning