Should You Buy Software Or Subscribe To It?

Traditionally, as an individual or company in need of particular software, you would purchase a software license - the right to use the software - or a copy of the software, allowing you to put it on a set number of computers, depending on the license. Now, however, there are two ways of getting software. Either as a once off purchase, or a monthly subscription. So should you be buying software outright, or renting it from a saas start-up? Here are some of the pros and cons of each.

Cost
Subscription can be a lot easier on your cash flow, as there’s no upfront cost. Most businesses buying software are new businesses, meaning huge upfront payments may not be as manageable. However, by purchasing software, you know that there will be no ongoing costs, the software is yours. Many Saas (software as a service) companies, through whom you would rent software, will cut off your subscription soon, if not immediately after a payment becomes overdue.

Updates
For companies who don’t want, or need to update their software on a regular basis, purchasing software may be more cost effective. They can buy the software as is and use it for as long as they need it, purchasing updates if and when they are necessary. If you need your software to be up to date constantly, a software subscription will ensure it. As a subscriber, every time an update is released, you’ll have the latest version.

Redundant software
If you only plan to use a program for a few months, purchasing a license doesn’t really make sense. It will likely be more cost effective to rent the program for as long as you need it, then cancel your subscription. Anything that you won’t be using consistently may not be worth owning, as it’s redundant in the months you aren’t using it.

Access
A definite pro of subscription software is that it’s not necessarily bound to a single computer. If the program is internet based, you can access and use it pretty much anywhere. This only becomes problematic when your internet goes down. For online programs, no internet connection means no access, so if you can’t get online, your software is out of reach.

Numbers
It can be tough to estimate how your business will grow, or if it will. Buying a software license means you need to know how many computers the software will be on – how many licenses you need. With a software subscription, your options are far more open. You can start with a basic subscription, using the software on just a handful of computers, and update your subscription as your company grows, expanding to 10, 20 or a hundred or more devices.

Ultimately, whether you settle on a software license or a subscription is up to you. Factor in long-term cost effectiveness, whether or not you need regular updates, how much support you may need with new software, and how your business is likely to grow.