A perfect question to consider when evaluating training management software is do I buy or rent a system? While most training management software available today don’t even offer the option to purchase a solution there are still some companies out there today offering you choices. How do you determine which is best for your business?
Much like the similar debate of buying versus leasing with an automobile, you have to make the choice that makes sense for your budget. An obvious answer would tell you that when you rent, you won’t have anything to show for your money when your lease is up. Does this hold true for training management software as well? One might believe that software is less tangible than a car and more frequently interchangeable. Still the argument holds true when the software term is up. If you’re not paying, you no longer get to use the software and the investment you’ve made in implementing the new system is gone.
Here are a few advantages that might help you decide:
The Buying Advantages:
- Data flexibility. The software resides on your internal servers giving you full control over your data allowing you to manipulate and convert as you see fit.
- Fully own the software. Once you buy the software it is yours forever. Assuming you did the due diligence in your buying decision, most companies maintain software for at least two years before looking for something new. Do a price comparison and see which gives you the biggest bank for your buck.
- Better long term investment. Typically the price of the software usually equates to a two year rental commitment with a company. Usually the best budget decision if you have the money up front.
The Renting Advantages:
- No technical resources necessary. The software is stored in an offsite facility so there is no upkeep from your IT team or the need to take up storage space on internal servers.
- Lower payments. If your company does not have the financial bandwith to support an upfront payment for software, renting allows you to get a solution you might not have otherwise been able to afford.
- Easier company buy-in. Because of the lower monthly/quarterly payments and minimal contract terms, many companies make quicker decisions with rental software. Biting off less upfront regardless of the long term savings sometimes makes more sense.
Overall, be sure to check with the training management software company to see if they offer options for software. Weigh your pros/cons and do what makes the best financial decision for your company. Better yet, hear from the experts. Here at Visibility Software, we welcome potential clients the opportunity to talk to current customers. Finding a reference that matches size, industry and to hear from those owning and renting helps to make a final decision. Best of luck!
To learn more about the buying vs renting options we offer, please join us for a product demo clicking on the button below.