Is it less expensive to buy and install a software package such as MS Dynamics CRM, or to use a cloud computing approach with a monthly fee?
When we hear this question, we might connect it with other questions like these:
Is it cheaper to rent or to own?
Is it cheaper to lease or to buy?
Our inclination is to assume that buying something once will inevitably be less expensive than paying for something each month.
Not so with software. Here's why:
Enterprise-level software is likely to require a hardware investment.
Purchasing software and hardware may require hiring people to care for it.
Software is never a one-time investment; it always requires updates, upgrades, and patches.
In order to compare the price of technology ownership with cloud solutions, you'll have to include all the costs, not just the initial purchase price.
So far, we've been working with a very simple scenario: the cost of buying exactly what you need compared with paying a monthly fee for exactly what you need. Many companies will have to take it another step.
If you're not in the position to make the complete capital investment that would give you exactly what you need, how many opportunities will you lose out on while you get the funds together? If you have seasonal changes in your business, what could you save by paying for less when you use less and more when you need more? When your business grows (and it will, with a CRM), what costs will be duplicated when you need to scale up your solutions?
Do a complete comparison -- we'll be happy to help you identify all the variables you'll need to consider -- and decide which approach is best for your business.