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I purchased several different license agreements, at different times.  How do I calculate main maintenance agreement costs?  I understand that if I want to keep my support agreement and to have access to the latest versions, a new maintenance agreement is required for each license, after the first year.  How do I go about calculating how much I have to pay?

Step-by-step guide

The maintenance agreement is calculated based on:

  1. The purchase date of your first license 
  2. Future licenses are retroactively calculated to the date of the first purchase.  
  3. The number of licenses you have

Let's take a concrete example.  Suppose you have purchased the following licenses at the following dates (the actual date is rounded off to the next month, so 1/29/2016 will be 2/2016):

Purchase DateNumber of LicensesNotes
2/20162Purchased two licenses in February of 2016
9/20163Purchased three license in September of 2016
10/20163Purchased three licenses in October of 2016

Next, assume we're now in December of 2018 and we're trying to calculate the cost of the maintenance agreement for the 8 licenses we hold.  This is done as follows:

  1. We calculate the cost based on the first license
  2. We retroactively adjust the dates of the other licenses to the purchase date of the first license
  3. All future license agreements are based off of the purchase date of the first license

This is best shown with this table:

Purchase DateFirst Year
(free maintenance)
Months to
First Year Expiration
Total Retroactive
Months 
Full Years
to Active
Licenses per
Year

Total Maintenance
Years per Purchase 

Notes
2/20162/20170 months0*2 = 0 months2 years2 licenses4 years
  • Since this is the first purchase, months to first purchase is zero
  • There are two maintenance agreements: one from 2/2017-2/2018 and 2/2018 to 2/2019
  • There are two licenses that were purchased in 2016, so a total of 4 maintenance years
9/20169/2017-7 months

-7 * 3 = -21 months

2 years3 licenses6 years
  • Calculate the number of months to first purchase expiration. Since first purchase expiration is in 2/2017, we retroactively reimburse 7 months for each of the 3 licenses. Hence 7 months from 9/2017 to 2/2017 -- per license.
10/201610/2017-8 months-8 * 3 = -24 months2 years3 licenses6 years 
Total  -45 months  16 years
  • Total is calculated as the number of maintenance years + the retroactive earned months. In this case:
Total Maintenance: 16 years - 45months = 12.25 years
  • Total = 16 years - 45months 
  • = 16*12 months - 45 months 
  • = 147 months 
  • = 147/12 years 
  • = 12.25 years

So the total maintenance on December 2018 is 12.25 years and the maintenance for all licenses will expire on 2/2019.  After 2/2019 the maintenance cost is 8x per year because there are 8 licenses issued.

 

Remember:

  1. All maintenance licenses are retroactively calculated to the first year of purchase.
  2. Maintenance agreements always expire on the date of purchase of the first license. 
  3. After the date of the first license expiration, the cost for each additional maintenance year, is multiplied by the number of licenses.  For 8x licenses, the cost for each additional calendar year of maintenance is 8x years of maintenance.
  4. If you've paid any maintenance agreements already, they will be subtracted from the calculation. In the above example, if you paid one maintenance agreement, then the total maintenance will be 12.25 - 1 = 11.25 years.