The 3 ways to obtain technology software
You have three choices when it comes to creating and managing software. Before you go about choosing one of these options, you must understand the problem that needs to be solved using the software.
Take into account strategic goals, external partners and required systems support. This will tremendously help you decide which approach would best suit your requirements.
You ‘buy’ the technology
You pay some company for a platform that has all the functionalities you need, and that’s about it. Everything else is taken care of.
Buying software not only saves you time but also maximizes your employee resources and lets you customize the platform with a specific functionality to meet your business needs.
Every business has unique requirements. Some are looking for accounting or scheduling, others may just want customer relationship management.
An extreme example is Salesforce.
Salesforce buys software companies that have the technology they can reuse for its customers. Last year, they purchased Demandware, a cloud eCommerce company, for $2.8 BILLION to help grow their eCommerce offerings.
There are a number of other software companies that offer a buy option for their platforms.
Once you’ve paid for the software, all you need to do is get someone onboard to manage it or train your existing employees to work with the platform.
Just like with any technology, it has its advantages and disadvantages:
Pros of ‘buying’ the technology
- Commercial software is relatively fast to deploy. You can install it as soon as you purchase it, saving you a hell lot of time.
- You can integrate third-party software. For example, if you’re using MySQL for your databases, but the new software you bought uses Amazon RDS, the software will make the transition smooth by letting MySQL integrate with the platform.
- They are customizable (to an extent).
- There is a strong community behind every major software to answer your questions in no time.
Cons of ‘buying’ the technology
- Commercial software has an upfront cost.
- More often than not, you end up paying for features you don’t need because they come with the package.
- There are ongoing costs of maintenance and upgrades.
- In case you run into a technical issue, the software provider may charge you extra to fix the problem.
You ‘build’ the technology
Build or buy?
A question that haunts every executive.
Think of it as a choice between buying an existing home or building your own.
You will need to employ developers to create the solution. Ask yourself — how important is technology to your business? If you think it’s at the core, go for it.
The level of customization you get with customized software is perhaps the biggest benefit. In the early stages, off-the-shelf software might do the trick. But when you start to grow, your day to day operations may lead to inefficiency and manual processes.
Pros of ‘building’ the technology
- Developers know exactly where to cut the corners based on the requirements and make the product as efficient as possible.
- You get software tailored exactly to your needs, which gives you greater control and a familiar interface that is much easier to use.
- There are no licensing issues.
Cons of ‘building’ the technology
- The team you hire may lack the knowledge and skills to build a sophisticated software from scratch.
- The software could end up having frequent bugs and glitches which may require you to bring in outside consultants costing you time and money.
- The whole process is quite time-consuming.
- It could be difficult to keep up with the evolving technology.
You ‘borrow’ the technology
Borrowing software should not be looked as a compromise between buying and building. You get what you pay for. You’re usually billed monthly depending on the plan you choose to use the platform. Continuous updates are automatically installed by the company.
Pros of ‘borrowing’ the technology
- Plug and play. Super-fast implementation.
- Requires zero maintenance.
- It usually has most of the functionalities you need.
- Thanks to the updates. The software keeps getting better over time. You could always write to the developers in case you have a specific requirement.
Cons of ‘borrowing’ the technology
- You have less control over the product.
- If the product is newly built, you may encounter some bugs. Maturity comes over time.
- Integrations can be an issue.
- Depending on the vendor you choose, watch out for a “lock-in” period.