Dynamic Enterprise Software Cost Estimation Model
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Solution Overview
Problem
Current methods for estimating enterprise software support and maintenance costs are inaccurate and inefficient, failing to account for dynamic changes in user bases and complexities, leading to unjust costs and market confusion, as they rely on outdated, ad hoc straight-line methods that do not consider the evolving nature of enterprises.
Innovation Solution
A method and system that dynamically evaluates enterprise software costs by identifying usage levels, deriving formulaic relationships between user bases and support services, and integrating support and maintenance levels across multiple software applications, providing a scalable and precise model for cost estimation.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Measurement precision
If traditional tiered licensing structures are used to estimate software costs, then licensing and support service resources are allocated based on graduated user numbers, but enterprises often purchase more licenses and support resources than required or experience unauthorized access beyond licensed users, resulting in both breach of software license and unjust benefit to the licensee
Solution Approach 1:
The patent implements dynamic cost estimation that automatically updates as enterprise user bases change. The system continuously monitors actual usage patterns and recalculates costs in real-time, allowing the licensing model to adapt to enterprise growth, contraction, or reorganization without requiring manual license adjustments or breaches of agreement
Solution Approach 2:
The patent transforms the static tiered licensing structure into a dynamic model where cost parameters are continuously adjusted based on actual usage metrics. Instead of fixed tiers, the system uses variable parameters including actual user counts, usage intensity, and service levels to calculate precise costs, eliminating the mismatch between licensed and actual users
2Ease of manufacture
If straight-line extrapolation methods are used to derive support cost estimates from user data, then the process is simple and straightforward, but the method fails to account for non-linear enterprise changes and produces fallacious or misleading cost values
Solution Approach 1:
The patent replaces the mechanical straight-line extrapolation method with a sophisticated computational model that uses multi-variable analysis and non-linear algorithms. The system automatically processes complex relationships between user bases, service levels, and costs using computer-based calculations, maintaining ease of use while achieving high precision through advanced mathematical modeling
Solution Approach 2:
The patent introduces an intermediary computational layer between simple user count data and final cost estimates. This intermediary processing layer applies multiple adjustment factors, service level weights, and usage pattern analyses to transform raw data into accurate cost values, bridging the gap between simplicity and precision
3Ease of operation
If custom integration projects bundle all software and service costs into a single lump sum, then the pricing appears all-inclusive and simple, but organizations have no visibility into how the lump sum is divided and expended across different cost components
Solution Approach 1:
The patent automatically segments the total software cost into distinct components including licensing fees, support services, maintenance costs, and implementation expenses. The system provides both the consolidated total for budgeting purposes and detailed breakdowns for cost analysis, allowing organizations to understand exactly how funds are allocated across different services and time periods
Data Source
AI summary
A user-based method and system for evaluating enterprise software costs determines a support level for the integrated provision of a plurality of enterprise software support services by identifying a plurality of usage levels associated with each of a plurality of enterprise software support applications. The method and system identify a plurality of software services support levels associated with each of the usage levels. Then, a formulaic relationship is derived from the plurality of usage levels and the plurality of software services for determining a software services support level for a given usage level that is appropriate for a subset of said plurality of enterprise software support applications. The ability to dynamically change user levels, complexity variables, database size, and software services enables dynamical and precise software services business consulting in providing such services.