Usage of software in a cloud: rent or buy
- Cloud Services
- Usage of software in a cloud: rent or buy
In our time, traditional buying and selling relationships are gradually but steadily transforming. Today is much convenient to rent all and everything: transport, accommodation, retail and industrial space, equipment. Companies strive to reduce capital expenditures as much as possible and renting of premises and equipment is more profitable than buying. The same trend is fair for software. More often, companies are looking towards renting software instead of purchasing box versions.
Pros and cons of buying software
Despite modern trends, software buying is still quite common. This decision has positive and negative aspects.
The advantages are:
- a company is the software owner, usually for life;
- there is an opportunity to modify the software at your discretion;
- the cost of the purchased software can be included in the total capitalization.
The disadvantages are also obvious:
- with time, the purchased software becomes outdated and requires updates, all major updates are paid, so they require additional financial investments from the company;
- it is not possible to use only the needed part of the software set to reduce costs. You pay for the full software set, and use it at your discretion;
- the box version may not have enough features to perform some specific tasks, but you cannot change its functionality;
- it is necessary to have specialized staff to maintain the functionality of the software-hardware complex;
- there may be conflicts with other software, including paid software.
Advantages and disadvantages of the cloud model
Using Software as a Service (SaaS) allows you to minimize all the negative aspects of purchasing software.
Software renting gives you the following advantages:
- you can use ready-made software immediately, without wasting time on installation and configuration;
- software rent payments can be considered as operating expenses, there is no need to withdraw significant funds from the company's turnover;
- you can change the software configuration at any time, add new licenses or cancel some of them if necessary, and quickly redistribute licenses between users or virtual machines;
- there is no need to worry about updates – the latest version of the software product is always available;
- usually, you have an opportunity to test software for free;
- software and data are stored remotely, and they are securely protected from local failures.
There are some disadvantages, although they are insignificant:
- to access the software, you need constant and stable Internet access;
- do not forget to make regular payments, otherwise, access to the software will be restricted.
With today's cloud technology, you can secure your data and also cut down expenses using software renting services. Please contact us for competent advice.
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