5 Reasons Why Subscription Economy is Financially Beneficial for Software Users

5 Reasons Why Subscription Economy is Financially Beneficial for Software Users

April 03, 2017
The highly technological society that we live in is rapidly and massively shifting from the Product Economy to the Subscription Economy. More and more consumers are becoming subscribers and there is no stopping it. This global trend has fundamentally changed the way business is done today.

As far as SaaS (Software-as-a-Service) goes, according to BetterBuys and their 2016 Report on the State of SaaS “64 percent of small and medium businesses today rely on cloud-based technology to drive growth and boost workflow efficiency, according to research from BSCG. And 78 percent of businesses indicate that they plan to expand the number of SaaS platforms they use over the next three years”.

The subscription model is indeed superior to a pay-per-product model in many ways, including the financial side, namely:

1. There is no need to buy additional products (software licenses) over and over again as your business grows. Any business software is an investment and a big economic decision. The subscription model allows software users live with this economic decision until the provider fails them, giving the freedom to terminate the service any time.

2. Consistency in monthly expenses brings consistency into the monthly budget planning and hence greater predictability 

3. Lower up-front costs

4. Funding from the OPEX which is preferred over the CAPEX funding by many small and mid-sized business

5. Getting it all for the price of one is another big pro. A software subscription normally includes a certain number of users and devices to handle operations as well as continuous support

If you have decided to incorporate cloud technologies into your business processes and subscription into your budget planning, and if you are looking to automate your inventory management and be able to synchronize it with your accounting, try HandiFox Online for free now!

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