It started with “enterprise software” companies like Oracle and Microsoft offering ever-more-centralized control over a firm’s data, storage and workflows. Now Adobe Systems and other software makers are jumping on the bandwagon, too, giving startup firms and solo professionals some of the flexibility they need to compete with “the biggies.”
We’re talking about software subscriptions, a niche within a large new tech service category known as Software as a Service (SaaS). While some tech categories are dead (netbooks) or dying a slow death (fax machines), subscription software packages are booming. Let’s take a look.
Subscription software options = advantages
Reasons both economic and managerial can support choosing subscription software services over buying programs outright. Whether you’re running Microsoft Office on a PC desktop computer rental or a 3D design package on a top-rated Macintosh, you now have options you didn’t have just a few years ago.
Of course, even when you pay $1,000+ for Adobe Creative Suite, you don’t “own” the software. Rather, you have a license to use it, a “perpetual” one that lasts forever. The downside? It doesn’t matter if you’re using a PC, an iMac or a laptop – updates, upgrades and ongoing tech support are not free, and can be as much as 20-25% of the total cost of ownership (TCO).
Make your best subscription deal
With a subscription deal, you pay for a certain term (a month-to-month or year-long agreement) and can’t use the software if you don’t renew. For example, if you decide to rent laptops for your conference team, and need special software installed, the cost-effective way would be short-term subscriptions or other SaaS arrangement. For longer periods, cost effectiveness improves, as upgrades, support and repairs are all included in your recurring payments.
You will always need the latest version of the program(s) you and your firm rely on daily, so the subscription model is best if you have a tight budget. Like plasma display rentals from CRE, your software rental is always ready to work, will be replaced immediately if defective and is guaranteed to do the job. There does come a point at which a purchase makes sense, but this differs for everyone and the variables are quite numerous. Rely on your trusted number cruncher to advise you.