Key reasons for renting software (subscription)

There are strong reasons for a S&MB (Small & Medium Business) to rent software versus purchasing it (classic model) and pay for licenses and on-premise services:

• Freeing financial resources to invest in core business: you will divert the money you would normally spend acquiring software towards your core business;
• Savings of up to 30€ by renting instead of buying. See table below.
• Reduced risks and increased ability to predict costs. The hidden costs of technology obsolescence are eliminated and you will know the real cost of your system at any given time;
• Predictable cost: the fixed monthly rent (subscription) fee guarantees the enterprise benefits without increasing costs. Price is fixed for the entire contract period, even if the number of users increases;
• Seamless supplier relation: one provider, one account manager and one monthly fee with direct deposit;
• Freedom to cancel: if you are not satisfied, the contract can be canceled at any time without penalties.

Comparison between renting and purchasing software costs

To make the comparison, the following business scenarios have been established:

• ERP with the following modules: purchase, sales, accounting and warehouse management
• 10 users
• Amortization period (purchase case) and 4 years renting.

(1) Monthly cost estimated in order to compare to renting model. Financial costs of investment are not considered.

Graph: Comparison between renting and purchasing software costs

Although the following elements have not been considered:

• the financial cost (leasing which is what most customers usually do)
• money depreciation

we can conclude that:

1. The renting model fee is lower than the hypothetical purchase model fee, therefore Quota's renting offer is advantageous both monthly and as a whole;
2. By renting software, S&MBs have the advantage of saving financial resources;
3. No investment and therefore no requirement to set aside money to purchase the product;
4. S&MBs are able to adapt their budgets easily and in real time;
5. Renting with Quota gives them the reassurance that they can stop using the software and cancel the contract if their business needs change.