Eliminating Licensing Fees: Another Reason for Custom Software Development
Off-the-shelf software is tailored for the “average” user. This is analogous to marathon athletes using off-the-shelf running shoes that come in a single size for the average foot. The average users win and the rest lose. Businesses that don’t fit the average mold are similarly disadvantaged.
Another problem of off-the-shelf software is that many of them don’t talk to each other. This guarantees system integration problems in your company, which cripple its operations and make it less competitive. There is yet another problem to using off-the-shelf software: costly recurring licensing fees.
Whether the licensing is per user or for the entire company, money is wasted when individuals stop using the software without canceling individual licenses or adjusting the company license. Company licenses may have fixed rates that won’t change until it’s renewed. This is costly for the downsized company. A lot of money is lost from individual licenses that auto-renew after the people who used them are long gone from the company. Meanwhile new employees join the company, choose their own off-the-shelf software, and create yet more individual license agreements. The larger the company, the greater the problem.
Another problem is underutilization. Because off-the-shelf software is customized to the needs of no one in particular, it often proves a bad fit for many of its users, who then find workarounds that minimize or entirely side step the software.
On the other hand, software customized around the requirements of specific job functions ensures its full utilization. The cost of its development is a one-off expense. If you are considering custom software development, don’t forget the money saved from the canceled software subscriptions you’ll no longer need. You’ll be surprised at how quickly the customized software pays for itself.
You can start saving money right now by tracking down and canceling your unused software subscriptions. Contact us to learn more about how custom software development will help your business save money and become more competitive.