{"id":568,"date":"2014-01-26T21:20:55","date_gmt":"2014-01-26T21:20:55","guid":{"rendered":"http:\/\/www.easyestimate.co.nz\/?p=568"},"modified":"2014-03-06T07:19:46","modified_gmt":"2014-03-06T07:19:46","slug":"traditional-software-vs-software-as-a-service","status":"publish","type":"post","link":"https:\/\/www.easyestimate.co.nz\/index.php\/traditional-software-vs-software-as-a-service\/","title":{"rendered":"Software purchase Vs Software as a Service"},"content":{"rendered":"

In the not to distant past we often had to deal with the phrase “I want to purchase the software, not rent it<\/strong>“. To look at the issues this covers we need to define what purchase\u00a0actually\u00a0is, for this example we have used the\u00a0definition\u00a0by some of the competition in our market.<\/p>\n

For example what is “purchasing” software? Looking at almost all the traditional construction estimating software<\/strong>\u00a0companies\u00a0you purchase a licence for you (or your company) to use their software on your computer.<\/p>\n

There is a widespread misunderstanding about purchasing software. In the last sentence, we used the word \u201cpurchase,\u201d but that isn\u2019t completely correct. You don\u2019t purchase a copy of the software; you purchase a restricted license to use the software.\u00a0So, even when you think you are purchasing software, you\u00a0aren’t. As with SaaS (Software as a Service), you are purchasing the\u00a0right to use the software<\/em>.<\/p>\n

So what happens after the purchase is complete and the “free” year of upgrades is finished?<\/p>\n

1) You get a new computer with the latest version of Windows or Mac OS and your version of the product does not support the new version, you then need the latest version of the software to load onto the new operating system, this is usually an additional cost.<\/p>\n

2) You get a new version of Excel \u00a0and your version of the “purchased” software does not support it.<\/p>\n

3) If a bug or problem is found and you are out of the free upgrade period you HAVE to buy the updates to get the bug fixed.<\/p>\n

4) When a new version is released of their software, your version will not be supported if bugs are found as the company just cannot keep all their software patched(You HAVE to\u00a0upgrade\u00a0to get the bug fixed)<\/p>\n

So in short, after you have spent \u00a3100’s or \u00a31000’s on “purchasing” the estimating software. <\/strong>You\u00a0will HAVE<\/strong> to pay more to the company to keep the software working on the latest version of your operating system or computer.<\/p>\n

Now to the advantages of Software as a Service : –<\/p>\n

1) Very low capital expenditure<\/p>\n

2) Very low risk in losing more than the monthly fee<\/p>\n

3) Available always on all internet connected devices.<\/p>\n

For a more in depth look at the economics please see this excellent (and detailed) article.<\/p>\n

http:\/\/www.pragmaticmarketing.com\/resources\/The-Economics-of-Software-as-a-Service-SaaS-vs-Software-as-a-Product<\/a><\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

In the not to distant past we often had to deal with the phrase “I want to purchase the software, not rent it“. To look at the issues this covers we need to define what purchase\u00a0actually\u00a0is, for this example we have used the\u00a0definition\u00a0by some of the competition in our market. For example what is “purchasing” […]<\/p>\n","protected":false},"author":2,"featured_media":772,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":""},"categories":[4],"tags":[],"_links":{"self":[{"href":"https:\/\/www.easyestimate.co.nz\/index.php\/wp-json\/wp\/v2\/posts\/568"}],"collection":[{"href":"https:\/\/www.easyestimate.co.nz\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.easyestimate.co.nz\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.easyestimate.co.nz\/index.php\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.easyestimate.co.nz\/index.php\/wp-json\/wp\/v2\/comments?post=568"}],"version-history":[{"count":13,"href":"https:\/\/www.easyestimate.co.nz\/index.php\/wp-json\/wp\/v2\/posts\/568\/revisions"}],"predecessor-version":[{"id":1255,"href":"https:\/\/www.easyestimate.co.nz\/index.php\/wp-json\/wp\/v2\/posts\/568\/revisions\/1255"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.easyestimate.co.nz\/index.php\/wp-json\/wp\/v2\/media\/772"}],"wp:attachment":[{"href":"https:\/\/www.easyestimate.co.nz\/index.php\/wp-json\/wp\/v2\/media?parent=568"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.easyestimate.co.nz\/index.php\/wp-json\/wp\/v2\/categories?post=568"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.easyestimate.co.nz\/index.php\/wp-json\/wp\/v2\/tags?post=568"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}