From a former insider’s view these items are a must before making
decision to purchase any off-the-shelf software for your business. -Brett Johnson 1.What determines software price? Is it PerSeat or PerUser or Per Processor? The cost of software is determined in many ways. The two most popular ways are Per Seat or Per Concurrent User. Per Seat is determined by how many seats in your business will be using software at any given time. On other hand, Per Concurrent User is based on a set amount of users that can access software at one time. (Example: 5 concurrent users means a program can be installed on 20 machines but only a maximum of 5 people can use system at once.) Per Processor is calculated on how many machines (PC’s or servers) software will be running on. Many larger enterprise software applications use this method to determine their prices. 2.What types of on-site services are included in purchase? Many programs that are higher in price should include some amount of on-site services or support. If it does not, ensure that both (service & support) are built into your contract before purchasing. But, beware that this is area where companies make most of their profit. Some companies count on you returning with requests for customizations of software. Now that you have software and have spent significant time purchasing hardware and dedicating resources, they know you are already, “half way in pool”; they also know that you will have trouble refusing to pay extra money to get what you want. These services can include anything from training classes, customizations, or help with installation issues. In case of local software companies, keep in mind, they should automatically provide some sort of on-site services (at a minimum) before purchasing. This can only help to streamline your implementation process and increase likelihood of your success, with added benefit of a higher return on investment (ROI), who wouldn’t like to have that.
3.Is there a guarantee of satisfaction with their software? This is most widely overlooked when purchasing software. Sometimes unsatisfied users will expect a refund after deciding that it is not what they want. My experience has been that once developer receives payment for software, it can take next to a miracle to get a refund of any kind. Prior to purchasing your next piece of software, be sure to find out their return policy and number of days that you can have software in your hands and still be able to send it back to get a full or partial refund. With custom developed software it can be even trickier for buyer, you will need to build this into contract before work begins. It goes without saying how important it is to determine this up front in case you change your mind.
4.What is turnaround time for getting “bugs” fixed? Some companies will say that they will fix software issues as soon as you find one. There are others that will compile list of “bug” fixes and release it on a scheduled basis convenient for them. This can happen either monthly, bi-monthly, quarterly or yearly. Neither path is better or worse, as long as you are dealing with a reputable software company that stays true to their word. Knowing this before purchasing software allows you to better handle your software end-users and enables you to provide a more accurate time frame of when your users will see changes or have their issues resolved.
5.How often do program updates go out and do they notify customers? This is another widely overlooked key item. There are two lines of thought that companies can use for updating customers. The company might decide not to notify its customers at all when updates rollout. They may think that if customer has a problem they will contact them. At that time would they inform user of an available update? Beware of this method of service, or lack there of. Steer clear of companies that do not provide this as an option to their clients. The second line of thought would be for company to notify its customers regularly about updates. They may also offer and option of including customer on a mailing list. In this case be sure that they have multiple contacts that are on email distribution list so that everyone who should know will not be left out of communications loop. If software company does not offer either one of this options, you might want to reconsider your decision.
6.Is proposed software scalable in design? Software that is scalable in design simply means that it can easily grow with your business, at minimal cost to you. Factors include end user customizations, current database structure, and inputs and outputs like reports, and connectivity to your other database systems. Scalability is very important for small businesses, because they are dynamic in growth. No one wants to jump through hoops of testing, development, customizations, and training, to purchase software only to find out a year later that you have outgrown it and you need to replace it. With proper planning at time of purchase only you can increase your chances for a successful software experience.
