With so many procurement software licensing and deployment models to chose from, some companies may feel like it would be easiest to play "rock, paper, scissors" to make a decision. However, there is a better way. Read this article to learn about the available licensing and deployment options and discover the considerations for figuring out the best model for you organization.
Faced with funding constraints, fast-paced business environments, and ever-evolving procurement needs, businesses cannot rely on a one-size-fits-all approach to deploying and managing best-in-class procurement capabilities. Organizations need to be able to choose the model that meets their individual requirements.
While some organizations are best suited to the traditional approach of building technology competencies in house, for others, this approach can be time consuming and capital intensive. New options like on-demand solutions can lower price and deployment barriers, but raise questions about solution configurability and location of assets. Businesses also may not have the requisite knowledge and resources in house to address technology and procurement requirements.
So which procurement software licensing and deployment model is right for your business? While answering this question may tempt you to resort to a game of "rock, paper, scissors," there is a better way. This article explains the available licensing and deployment options and reviews the business factors for determining the best approach for your company.
Procurement Software Licensing Models and Deployment Options
There are currently two main ways to license your procurement software: the software-as-a-service (SaaS) subscription model, or the perpetual license model.Figure 1 provides an overview of the deployment options available with each of these licensing models. To make the best decision for your organization, it is critical to have a solid understanding of the models and options.