Software-as-a-Service or “Why I’m Paying Monthly Instead of Buying a Disk” December 7, 2023 – Posted in: IT Support – Tags: , ,

Remember buying a copy of office? You’d get a CD and a product key, you’d install the software from the CD then put in the key and from then on all users on that computer would be able to open and run Office until you replaced the PC. Now you’re paying £10.30 a month or more for Office 365.

This is Software-as-a-Service. Instead of selling you a one off product, most software is sold on a subscriber basis. Why?

The cynical amongst you might say because the software companies make more money this way. You aren’t wrong. But there is more to it than that.

Back when disks were the primary means for buying and installing software most people only had one PC. In fact, most homes only had one PC. Some offices only had one PC. So a device by device model where you paid for the software on the PC, not by the number of people using it was best for the consumer. These days many people will have multiple devices, even within an office environment. They may have a desktop PC, a laptop or tablet and a phone. Having a user license that allows you to install the software easily on multiple devices is better for a lot of consumers.

What has enabled companies to work on the subscription model is the internet. Connected devices can be constantly updated, new features deployed immediately and users can install their apps on multiple devices. What has made the model the only realistic one… is the internet again.

Before your computer was connected to the internet it was safer. To access it someone would have to get inside the office and connect to the internal network which could be defended physically. Now your devices are always connected to the world and someone on the other side of it could send you a virus, you need to be protected by the software you use. If the copy of Sage that you bought on a floppy disk had a known, exploitable bug on it and it stayed that way until the next year when you bought the upgrade, it wasn’t the end of the world. No-one could get to your machine to exploit the bug. Now an exploitable bug in a piece of software is a massive security risk and must be patched as soon as possible.

This requirement for immediate patching applies to operating systems as well. Microsoft and Apple both release major updates with increasing frequency. Not so long ago a major update was a major headache with concerns about compatibility with every piece of software you ran. Now, instead of having to constantly worry about compatibility issues every time you run a major Windows update, your software provider is expected to make sure it works seamlessly.

If software providers are going to be constantly monitoring compatibility, providing security updates and adding new features as technology changes they need an ongoing revenue stream from their solutions. Anyone still desperately trying to get an old solution to work on Edge in IE mode knows, if it was a one off payment software providers don’t have a lot of interest in updating their products to work with the latest technology.

Whilst a subscription model might seem like a lot compared to the one off costs of the old solutions can be the only way to be confident your software provider is doing their bit and keeping you up to date. If you would like help navigating the most cost-effective option for your business give us a call on 01245 265100.

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