Customer Support Software - Annual Subscription Explained

When selecting a software solution there are many considerations including weighing the key features you need, but did you know that there can be great variance in the deployment cost model as well?

Let’s take a look at the common software deployment types:

Free/Shareware: This is typically a very basic version of the vendor’s software. It is free, but there may be hidden costs for additional users, features, or support. Some have time limits, while others have unlimited use, but may have other restrictions. Make sure you read all the fine print and weigh the investment of time you will spend learning and deploying the software based on your long term needs. Can it grow with you?

Cloud/Hosted/SaaS: This is software that is ‘hosted’ on the vendor’s server. It is accessible from any web browser and does not require IT installation. Your data is stored on the vendor’s secure server. Typically there are monthly fees to use the software, and there may be an initial ‘set-up’ to get you started. Also be aware of the contracts of service; they may be month-to-month or longer.

In-House Deployment: This software is delivered to you by cd or downloaded with license key and is managed on your server. You will need someone to install and configure the software and all your data will be kept in house. You own the software for as long as you wish to use it. Updates are your obligation. This model typically costs more up front and is depreciated over length of use.

Annual Subscription: Now here is the one that is the most confusing because it varies greatly among vendors. Typically annual subscription is similar to a car lease. You get the software (like in-house deployment where data is kept in house) and use it for a prescribed length of time. Like a car lease it does expire, and while you don’t have to turn it back in, the license expires and it is no longer accessible.

So you may wonder why choose an annual subscription model?

Annual subscription is great for companies who NEED to keep their data in-house, but don’t want a large initial investment and want to spread out payments over time. Like a car lease buyers need to take the time to read all of the small print. Because it is a relatively new model for the software industry there is great variance among vendors. Buyers need to ask about other related costs such as training, upgrades and support costs that could affect the total price.

Anne Sych, Marketing Manager for Novo Solutions, Inc. Novo Solutions, Inc. is an Independent Software Vendor (ISV) in Virginia Beach, Virginia specializing in Support Tracking Software. Free trial versions of the Novo Customer Support Suite, and suite of web-based Support Solutions are available.