finPOWER Licensing Model Explained
In addition to the purchase price of finPOWER there is an annual ongoing cost. This cost, the annual software licence fee is explained below, along with the general licensing concepts used by finPOWER.
On installation of the software, the Annual Software Licence Agreement and accompanying Direct Debit Form, if relevant, must be signed. The Annual Software Licence Agreement is designed for the clients protection as well as Intersoft Systems. The main benefit to you is in maintaining the software's value, by providing fixes and enhancing the software facilities. This means your software doesn't lose its value over time, and usually it increases (unlike motor vehicles for example).
Your system holds licensing information on the maximum number of Open Contracts (Loans or Deposits) that can be registered on the system. Separate counts of Loans and Deposits are maintained on the system and are treated separately for licensing purposes. Each count is the maximum number of open contracts (Loans or Deposits) in all non read-only company databases you process, and forms the basis for the billing of the Annual Software Licence Fee.
The number of open contracts your system is licensed to can be increased or decreased in blocks of 100 by contacting Intersoft Systems or your Dealer and quoting your Licence Number. It is suggested that you increase the number of open contracts your system is licensed to well before they are required.
The system requires relicensing annually or more frequently for continued operation. Intersoft Systems will contact you in the month prior to the existing licence expiring, advising of the process for you to acquire the necessary relicensing codes. Intersoft will not issue relicensing codes if Annual Software Licence Fee payments are not current. In the event of the system not being relicensed prior to the expiry of the existing licence, read only access will granted for the system and no information will be able to be entered into the system.
You may only process your own businesses information (primary database) on finPOWER, but you may install the system on any computer required to process the primary database, so long as the computer is connected (permanently or temporarily) to the network where the primary database resides.
This means that only one company can process their information on the one licensed system, and the primary database can only reside in one location. If your company has multiple trading arms these may be processed as one database or as separate company databases (each having their own primary database) so long as the databases reside on the same computer. If you have any queries regarding the use of the system for multiple databases, please contact Intersoft Systems to check.
Where an associated company wishes to process information on the system at the same location, Intersoft Systems may grant permission in writing, without the system needing to be repurchased, given that another Licence Agreement is signed. Where an associate company wishes to use the Intersoft software on another computer at another location Intersoft Systems Ltd may at its discretion offer up to 20% discount, based on the recommended retail price of either the associate company or the original company’s software licence, whichever is the lesser. For the purpose of this discount an associate company is defined as a company that has at least a 50% common shareholding with the shareholders in the original company.
The Licence Fee is for the continued use of the system. Additionally, you are entitled to relevant software updates as they become available. The Licence Fee is based on the number of open contracts the system is licensed to and on the number and type of "Add-Ons" you have. The Licence Fee will be charged monthly from the first full month following the purchase of the system and is due for payment on the 20th of the month following. You are charged based on the highest number of contracts licensed to in any one month (see the example below). The Licence Fee will be Direct Debited from your nominated Bank Account or collected by our appointed representative.
The Licence Fee is calculated by totalling the "Licence Fee per 100 Contracts per annum" Column on the Price List for all the modules you are using and multiplying that figure by the number of open contacts the system is licensed to. The minimum Annual Licence Fee is $500 in NZ, $600 in Australia. Quantity Discounts are applicable at 2000, 4000 and 6000 Open Contracts at the following rates:
- Contracts between 2000 and 4000 attract a 20% Discount on the Annual Licence Fee
- Contracts between 4001 and 6000 attract a 40% Discount on the Annual Licence Fee
- Contracts above 6001 attract a 60% Discount on the Annual Licence Fee
An Example of the Annual Licence Fee Calculation is as follows: You are running the finPOWER Base System, the Variable Loans Add-on and the Dealers, Payment Link and Securities Registry Add-ons. The Annual Licence Fee is therefore $204 per 100 Open Contracts the systems is licensed to (plus GST).
- If you have 200 open contracts the Annual Licence Fee would be $500 (or $600), paid with a monthly Direct Debit of $41.67 plus GST. Remember that the minimum Annual Licence Fee is $500 (or $600) per year.
- If you have 600 open contracts the Annual Licence Fee would be $1,224, paid with a monthly Direct Debit of $102.00 plus GST.
- If you have 550 open contracts the Annual Licence Fee would be $1224, paid with a monthly Direct Debit of $102.00 plus GST. Remember that Active Contracts are licensed in blocks of 100.
- If you have 650 open contracts at the start of the month, and 725 at the end of the month the Annual Licence Fee would be $1632.00, paid with a monthly Direct Debit of $136.00 plus GST. Remember that the highest number of active contracts in a month is used to calculate the Annual Licence Fee.
- If you have 3,000 open contracts the Annual Licence Fee would be $5,712 paid with a monthly Direct Debit of $476.00 plus GST. Remember that the first 2,000 Open Contracts are charged the normal Annual Licence Fee and the next 1000 are at a 20% Discount off the normal Annual Software Licence Fee.
Please Note: Your Licence Fee Charges may be different to the amounts indicated above!
Freight, materials and phone or direct support are not covered by the Licence Fee and are charged in addition to this. However we reserve the right to provide upgrades free of cost (for example disks and postage free). Any support facilities outside the scope of this agreement, eg program modification and recovery of corrupt data files, will be charged on an hourly basis or at a pre-quoted price.