Through the years, software companies have moved to a subscription model which has multiple benefits for the purchaser.
You may recall the old process: When you wanted to purchase software you had to order it, wait for the box to arrive, install it onto your machine or server using your CD-ROM drive—or if you’re old enough, floppy disks. As the software aged, you’d have to update it, which would require you to go through the process again. But inevitably, you’d eventually need a new computer and that would create a massive headache of transferring the program to a new machine.
Luckily this cumbersome process is no longer necessary.
Thanks to the advent of high-speed Internet, downloading software or using web-based applications has become the standard for many industries. Here are some of the advantages:
Low start-up cost. With a subscription you don’t need to worry about a large upfront expenditure. Since the price is typically broken down monthly or annually, you’re paying a fraction of the cost to get started—making it much easier to convince a boss to get on-board.
No waiting. For most online software you can begin using it almost immediately. Gone are the days of checking the mailbox every day, hoping your new purchase has arrived.
Scalability. Many software packages allow you to add on features as you need them, as opposed to having to purchase features you’ll never use. That’s something that seldom happens with boxed software.
Easy expense forecasting. Finance departments love recurring monthly payments because it allows costs to be predictable.
It forces product improvement. Your software provider will want to earn your continued business in the form of a subscription renewal. A subscription model forces them to continue to improve their product in order to keep your loyalty.
While there are plenty of benefits to purchasing software via subscription, there are still places where disk installation is required. More specifically, in the financial sector, businesses such as banks cannot allow their servers direct access to the Internet due to security regulations.
That said, most businesses aren’t responsible for billions or even trillions of dollars of other people’s money.
PTV Group offers logistics software on a subscription basis. Contact us to see how you can get started quickly, and without a large upfront expense.