An interesting discussion on the ASP Group on Linkedin asked for ways to address customers who won’t upgrade their systems and keep requesting support. There are several valuable suggestions in that discussion, but I’d like to use this opportunity to address the how vendor choices impact customers upgrade decisions.
There are two main choices vendors can make that impact customers’ decision. First are policy choices: for example, the number of supported release and the options available to a customer on a non-supported release when encountering a problem. Second are engineering choices: complexity of the upgrade process, the amount of work the customer need to invest in the upgrade and whether any equipment needs to be acquired. These decisions influence customers and their ability, and desire, to upgrade. The interaction between policies and and technology choices will tend to drive customer choices and the resulting actions vendors can take.
The following matrix offers a quick visualization of the choices and their impact.
If we think about these four options, we can identify some familiar categories and use cases:
- Quadrant I is empty due to the fact that simple or automated upgrades make it easy for customers to upgrade vendors can get away with strict policies, sunsetting releases rapidly, reducing support levels for backward releases and sometimes charging high maintenance fees.
- Quadrant II Is for situations where upgrades involve high expense and risk, and the vendors are willing to continue supporting these releases either for customer retention of for the increased maintenance fees. The most famous example is Microsoft’s extended support for Windows XP.
- Quadrant III Represents cases where software upgrade is simple and in many cases automated. A typical use case would be Anti-Virus software with auto-update capabilities and little effort investment on the customers’ side.
- Quadrant IV Here we find extremely complex technology deployments (think large scale ERP systems), requiring extensive customization, and subsequent testing and adaptation when upgrading. These are extremely expensive, time consuming and very risk prone. Frequently customers would rather stay on their original release and avoid upgrading Vendors who refuse to support their older releases or who impose high costs for doing that may find their customers defecting to third party maintenance providers.
Understanding these categories and the choices you make will help you understand how your company’s policy and technology choices impact customers’ upgrade decision and your maintenance business.