How is project management software priced?
Project management software costs depend on factors such as the software provider, features and functionalities offered, the number of supported users and projects, training availability, storage, integration, and business size.
Types of project management software pricing models
The subscription model is the most prevalent pricing approach for PM software. Instead of a one-time purchase, users make monthly or yearly payments to the software provider. There are some other pricing models for project management tools:
-
- • Freemium: A basic version of the software is free, with paid upgrades or add-ons for additional features.
- • Per user: Pricing is based on the number of software users.
- • Per project: Pricing is based on the number of projects managed using the software.
- • One-time fee: Users pay a one-time fee to access the software and its features permanently.
- • Pay-as-you-go: Users are charged based on usage (usually monthly or annually).
Some software providers also offer custom pricing plans or a combination of pricing models. Project management solutions typically include three different pricing plans based on the number of users:
- • Entry-level (1-50 users): Starting at $201 per month, the basic plan includes limited project management features and functionality, such as task management, team collaboration, and user management. This plan can be a good option for small business project managers handling basic or a limited number of simple projects.
- • Mid-tier (51-100 users): Costing on average $947 per month, the mid-tier plan often includes more advanced features and capabilities, such as resource management, project cost management, and automation. This plan is suitable for those project managers who have outgrown basic project management solutions but don’t require the full range of functionality offered by enterprise-level tools.
- • High-end (101+ users): Costs over $1,492 per month and offers a range of advanced capabilities, including unlimited access to entry-level and mid-tier features, priority customer support, unlimited tasks, risk management, and unlimited projects. This plan is suitable for project managers that need a customized solution.
Read our in-depth guide below to learn more.
A VPN, or a virtual private network, is a mechanism used to establish a secure connection between a device and a network, such as a remote employee’s computer and a company’s internal server. Organizations use VPNs to secure these connections and prevent potential threats from accessing and taking advantage of sensitive information.
In this article, we define what a VPN is, how it works, and how it can benefit you and your organization.
What are the upfront and recurring costs associated with project management software?
The initial expenses when buying or subscribing to software are called upfront costs. These include the cost of a one-time license, customization, installation, and integration. Ongoing expenses for using the software, such as subscription fees, premium support, and maintenance, are known as recurring costs. These costs can be monthly or yearly and may include upgrades or extra user licenses.
Let’s look at the upfront and recurring costs of different project management software pricing models before making a decision.
Subscription license
- • What it is: You pay a monthly or yearly fee to use the solution for a specific period. Usually, the pricing is based on the number of users each month. There are also pay-as-you-go options with no contracts, allowing you to stop anytime.
- • Commonly used for: Cloud-based deployments, where the system is hosted by vendors on their servers and can be accessed on compatible devices over the internet, such as laptops, smartphones and tablets.
- • Upfront costs: Installation, setup, and customization of the software.
- • Recurring costs: A monthly or annual subscription fee per user and access to premium support offerings (e.g., 24/7 phone support hours and quick ticket response time).
- • Hidden costs: Customization, implementation of unique company branding, and integration with existing software (such as CRM, remote work, and collaboration tools).
Perpetual license
- • What it is: One-time fee for a permanent license to use the project management solution. The fee for the perpetual license can vary based on the number of users.
- • Commonly used for: On-premise deployments, where the system is hosted and maintained in-house on your own servers.
- • Upfront costs: One-time license fee, hardware (for example, servers) cost, and installation charges.
- • Recurring costs: Monthly, annual, or ad hoc maintenance (for example, updates, patches, and upgrades). Recurring costs may include premium support offerings (for example, extended phone support hours).
- • Hidden costs: Customization, integration, and IT staff overtime (or hiring more IT staff) to maintain servers.
Free plans
- • What it is: Basic project management software is free to use, allowing you to conduct basic tasks without having to incur any expense.
- • Commonly used by: Small business owners or project managers with limited budgets and resources.
- • Upfront costs: Installation or setup costs.
- • Recurring costs: There are no recurring costs. You can use it freely, typically with limited features.
- • Hidden costs: Implementation, customization, maintenance, integration with existing tech stack, training, and premium support options.
TypWhat are the additional fees associated with project management software?
There can be some additional fees associated with project management software that you may incur at the time of implementing the new tool. This fee can increase your total cost of ownership. As these costs are common across different project management software vendors and pricing models, you must budget for them in advance.
- • Data migration: Switching to a new project management solution and moving all important data can take a lot of time and needs specialized skills, leading to extra data migration costs. These costs include expert consultation, data mapping and validation, hardware or software installation for migration, and data integrity assurance. It’s crucial to consider the total data migration expenses. Also, understand if there will be any downtime during the data transfer and how much that disruption might cost.
- • Training: Training staff on a new project management system can range from free to several thousand dollars, depending on how complex and vital the software is. Many software vendors offer free online resources, such as webinars and instructional videos, to help lower training costs. Hiring an implementation specialist to train staff and reduce downtime quickly might be more expensive but could be beneficial in the long run.
- • Hardware and IT: Hardware and IT costs can involve buying or upgrading servers to host the software, updating employee computers or mobile devices to meet technical requirements, and possibly hiring IT staff to manage and maintain the system. These costs can add to the overall expense of project management software. Before making a decision, check if any upgrades or additional costs are needed for your current infrastructure to implement the software.
- • Maintenance and upgrades: These expenses are necessary to ensure that project management software runs smoothly and stays current with the latest features and capabilities. Maintenance and upgrades are recurring costs that can accumulate over time. It’s important to determine if the vendor includes maintenance and upgrade services in your software subscription or licensing fees. Alternatively, you might have in-house staff to manage maintenance and support tasks.
How to find the right project management price range
- • Assess your project management needs. Small businesses typically have basic project management requirements due to their small-scale operations and limited users. They can invest in a free plan or entry-level project management tool that offers a limited set of features. On the other hand, larger businesses require advanced functionalities to support their complex project management operations. They can consider investing in a high-end project management solution that offers premium features.
- • Consider pricing commitment. You have two pricing options: subscription and long-term. Subscription plans let you pay monthly or annually, offering flexibility to scale up or down as your needs change. This option is ideal if you prefer lower upfront costs and the ability to cancel or adjust your plan as needed. Long-term pricing, such as a perpetual license, involves a one-time payment, which can be more cost-effective over time if you plan to use the software for several years.
- • Consider the scalability and flexibility of the tool. It’s important to choose a project management tool that can grow with your business. Ensure the tool can handle an increasing number of projects, users, and complexity over time. Flexibility is also key; the software should adapt to your evolving workflows and integrate with other tools you use. A scalable and flexible solution ensures long-term value, preventing the need for frequent changes and additional costs as your needs expand.
