AM Application Maintenance Contracts

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The importance of AM contracts in custom software development

In the development of custom software, product implementation represents only part of the journey. Once the project is completed and the operational version is released, the need to ensure the proper functioning, security and continuous updating of the system takes over. This is exactly the role of the AM (application maintenance) contracts., essential tools for ensuring longevity and reliability of software applications.

What is an AM contract?

A application maintenance (AM) contract is an agreement between the software vendor and the customer that defines all maintenance, technical support, and update activities necessary to keep the application in full working order. These contracts can cover various aspects:

Corrective maintenance – Troubleshooting of bugs and malfunctions detected during the use of the software.
Adaptive maintenance – Adaptation of software to changes in the operating environment, such as system upgrades or hardware changes.
Evolutionary Maintenance. – Introduction of new features to meet new business needs.
Preventive Maintenance. – Activities aimed at preventing future malfunctions, increasing the safety and stability of the system.

The advantages of AM contracts

Application maintenance contracts offer many benefits:

Operational continuity: the application remains functional and up-to-date, avoiding unexpected interruptions.
Risk reduction: Timely interventions limit the impact of failures.
Cost optimization: Planned pricing avoids unexpected costs associated with extraordinary interventions.
Scalability: it is possible to evolve the software without having to start from scratch, integrating new features over time.

Another key aspect is related to the continuous evolution of technologies used in custom software development. Programming languages, frameworks and development tools can change over time, becoming obsolete or less supported by the market. Technical skills within a software house, such as F.Technology, can also change: professionals changing companies, updates in technical knowledge, or the introduction of new technologies can impact business continuity.

In fact, the software market is extremely fluid: tools evolve, professionals move, and technologies update rapidly. In this context, an AM contract provides the customer with the security of always having a team trained and available on the technologies used in their software, ensuring timely and targeted interventions throughout the life of the product.

For more information on how custom software development is handled, you can check out this dedicated article.

Key points of an AM contract

A well-structured AM contract includes precise specifications on several key aspects:

Warranty extension: the software warranty, which usually covers the first 90 days post-release, is extended for the duration of the contract, ensuring that any defects found are corrected.
Service Level Agreement (SLA): time frames for intervention in the event of a failure are defined, usually measured in hours. For example, a 2-hour SLA guarantees that the ticket will be taken care of within this time frame in case of critical malfunctions, ensuring business continuity.
Server and security support: server management, resource monitoring, updating SSL certificates, regular backups and periodic restore tests to ensure data integrity are provided. Security monitoring activities and vulnerability scans are also included.
Non-evolutionary changes and technical adaptation: Any work required to adapt the software to changes in the environment (new client or server versions) is included in the contract. This allows the software to remain up-to-date without additional costs.
Monthly amount of hours for Change Request (CR): In some cases, the contract may provide a monthly set of hours to be used for minor changes requested by the customer. These hours may or may not be absorbed, depending on the agreement made.

Scaled-up hourly package options and evolutionary interventions

For projects that require small evolutionary changes, some AM contracts provide for scaled-up hourly packages. This model allows you to purchase a set number of development hours for minor interventions (Change Request) that do not require a complete redesign. For example, 10-hour packages can be subscribed to make minor adjustments or improvements in the code.

More complex evolutionary activities, on the other hand, are handled through a dedicated functional analysis and the drafting of a specific budget. This provides transparency in costs and clarity on the goals to be achieved. To learn more about the concept of Time vs. Sprint Points, you can read this explanatory article.

The importance of an AM contract in the software life cycle

Custom software, if not properly supported, is at risk of quickly becoming obsolete or vulnerable to technical problems. An AM contract ensures that the application is always aligned with the company’s operational needs, reducing the risk of downtime, security problems and technical incompatibilities.

In addition, the proactive approach to maintenance allows intervention before a problem becomes critical, improving the reliability and efficiency of the entire system.

With an AM contract, the company can focus on its business, leaving the technical management of the software to a team of experts who ensure its stability, security and evolution over time.

In conclusion, choosing to invest in an application maintenance contract is not only a strategic choice, but a guarantee of continuity and protection of the software investment.