Buying Software in a Declining Economy
The economy is in shambles right now … you know that, I know that and the company pet probably even knows it. Let’s face it there are solutions to change the system but they are out of our control. The only option we really have is the choice of sitting back and crying over it or standing tall and trying to find the best possible way to still live our lives and pinch our pennies while we do it.
Of course companies are feeling the pressure to continue expanding and becoming more efficient but also they are faced with the harsh reality that they just can not afford the tools necessary to do so.
Well I suppose we can focus on the subject at hand, enterprises which are purchasing ERP software. Now that’s a great big chunk of money! Answer me this – why would an organization purchase an entire system and spend thousands (some spend millions) on a system which they do not even know whether it will work the way they want it to or whether it will become a big waste of money.
SaaS helps to reduce the large-up front expenses associated with software purchases by offering less costly monthly pricing and reducing the investment on server hardware. Any way to save a small amount of software is a great option. One other option some vendors offer is like renting to own … kind of. Talk with the vendor which you are working with to see if they will allow you to utilize their system as SaaS until the funds are available to purchase the entire system. This is a great option because your organization will become familiar with the software that is available and can be making lists of all the items within the system which need to be updated once the system is purchased.
Also, a good option to investigate when purchasing an ERP system is making the commitment to the software provider and then purchasing the software one module at a time as the funds become available. Obviously this may not be a feasible option if the organization is struggling significantly but if you are optimistic like every other American is trying to be, you’re hoping the economy is going to increase significantly and you will be able to purchase it in the very near future.
