{"id":311,"date":"2013-01-20T11:25:56","date_gmt":"2013-01-20T11:25:56","guid":{"rendered":"http:\/\/www.mysaasplace.com\/?page_id=311"},"modified":"2013-04-17T18:25:30","modified_gmt":"2013-04-17T18:25:30","slug":"why-software-in-rent","status":"publish","type":"page","link":"https:\/\/www.mysaasplace.com\/en\/why-software-in-rent\/","title":{"rendered":"Why Software rental?"},"content":{"rendered":"

Why Software rental?<\/h2>\r\n

There is no doubt that, nowadays, buying a software license is not as economical as renting it in the Cloud<\/strong>. And it\u2019s not just us at\u00a0MySaaSPlace<\/b> <\/a>who make that claim; experts around the world say the same, and it is clear from studies carried out by leading universities and consulting companies. Software as a Service<\/b>\u00a0has arrived!!<\/p>\r\n

Have you ever calculated the significant investment your company has made (or will make) to deploy an\u00a0ERP or Management System<\/b>\u00a0\u2026? And once you have completed the selection process, have you ever worked out the price of deploying the chosen system?<\/p>\r\n

The price is high at any company, and the bigger the company, the exponentially greater the costs. Lets see, for instance, the\u00a0numbers for a medium-sized enterprise with an annual turnover of 1\u00a0million USD and with\u00a015 users:<\/p>\r\n

INITIAL INVESTMENT<\/span>\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n
Internal time spent on the ERP selection process.<\/td>\r\n$1.000<\/td>\r\n<\/tr>\r\n
Purchase of servers and storage that support the chosen software.<\/td>\r\n$6.500<\/td>\r\n<\/tr>\r\n
Purchase of licenses for the servers (O.S., DB).<\/td>\r\n$1.650<\/td>\r\n<\/tr>\r\n
Purchase of the chosen ERP licenses.<\/td>\r\n$30.000<\/td>\r\n<\/tr>\r\n
Consultants\u2019 time to deploy the ERP.<\/td>\r\n$20.000<\/td>\r\n<\/tr>\r\n
TOTAL INITIAL INVESTMENT<\/strong><\/td>\r\n$59.150<\/strong><\/td>\r\n<\/tr>\r\n<\/tbody><\/table>\r\n<\/div>\r\n
RECURRING COSTS<\/span>\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n
In-house technician hours for systems maintenance.<\/td>\r\n$4.500<\/td>\r\n<\/tr>\r\n
ERP maintenance service, including updating versions.<\/td>\r\n$3.000<\/td>\r\n<\/tr>\r\n
Internal hours spent making backups.<\/td>\r\n$1.050<\/td>\r\n<\/tr>\r\n
Total annual recurring costs<\/td>\r\n$8.500<\/td>\r\n<\/tr>\r\n
TOTAL RECURRING COSTS\u00a0FOR 3 YEARS<\/strong><\/td>\r\n$25.550<\/strong><\/td>\r\n<\/tr>\r\n<\/tbody><\/table>\r\n<\/div>\r\n

Consequently, over 3 years of the ERP\u2019s life, your company will spend:<\/p>\r\n

SUMMARY OF TRADITIONAL METHOD\u00a0FOR 3 YEARS<\/span>\r\n\r\n\r\n\r\n\r\n\r\n
Initial investment<\/td>\r\n$59.150<\/td>\r\n<\/tr>\r\n
Recurring costs for 3 years<\/td>\r\n$25.500<\/td>\r\n<\/tr>\r\n
TOTAL TRADITIONAL METHOD FOR\u00a03 YEARS<\/strong><\/td>\r\n$84.650<\/strong><\/td>\r\n<\/tr>\r\n<\/tbody><\/table>\r\n<\/div>\r\n

With a rental software model such as\u00a0MySaaSPlace<\/b><\/a>, you will not pay any initial investment. You will have the applications fully deployed from the outset. You will only pay for the monthly or yearly service cost. To use the example of the company mentioned above, with the same amount of users in\u00a0MySaaSPlace,<\/b>\u00a0the costs would be (without applying annual rates or Solution or User packs that are\u00a0even cheaper<\/b><\/a>):<\/p>\r\n

MYSAASPLACE COSTS<\/span>\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n
ITEM<\/td>\r\nQUANTITY<\/td>\r\nCOST<\/td>\r\nTOTAL<\/td>\r\n<\/tr>\r\n
Cost for the monthly Accounting, Invoicing and Integrated Project Management
service,<\/td>\r\n		3<\/td>\r\n$25<\/td>\r\n$75<\/td>\r\n<\/tr>\r\n
Users (monthly)<\/td>\r\n12<\/td>\r\n$15<\/td>\r\n$180<\/td>\r\n<\/tr>\r\n
TOTAL COST (monthly)<\/td>\r\n<\/td>\r\n<\/td>\r\n$255<\/td>\r\n<\/tr>\r\n
TOTAL COST IN\u00a03 YEARS (36 MONTHS)<\/strong><\/td>\r\n<\/td>\r\n<\/td>\r\n$9.180<\/strong><\/td>\r\n<\/tr>\r\n<\/tbody><\/table>\r\n

\u00a090 % savings with<\/strong> MySaaSPlace<\/strong><\/a>!!<\/p>\r\n<\/div>\r\n

Furthermore:<\/p>\r\n