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Why choose subscription-based model of ERP software?

January 3rd, 2018 Intech SystemIntech Systems ERP

The software industry is moving to the subscription based ERP software model which means you make payments based on usage. Cost and convenience are among the top benefits of a subscription-based pricing model, be it in any type and size of business. How nice it would be if you switch on your computer and find that your ERP software has upgraded automatically? You would be free from the hassles of upgrades and keeping an eye on bug fixes. All this makes subscription model of software a hit among the businesses.
Not only these, there are many other benefits of adopting a subscription based ERP software in your business.

Eliminate capital expenditure

The rise of cloud computing, advent of digital transformation and a change in consumer behavior have led to this transformation in businesses. Cost savings is the main driver of subscription model being a hit in businesses. Moving to a subscription payment plan moves your software from a capital expenditure to an operating expense. A subscription-based model offers flexibility of scaling the usage and planning for growth in a more manageable way.

Get unlimited flexibility

The number of people never remains constant in a company. As the strength changes, so does the need for number of licenses. But this model, unlike traditional ERP software, doesn’t work on the principle of ‘What you bought is what you got’. Subscription-based ERP means you can match your software needs to your business performance on a monthly basis. You can add or remove users as the company grows.

Try new features with low or no risk

Flexibility in this model is more than just volumes of licenses. ERP software now comes with many features, options, services and integrations than before. But not every business need every feature. Buying a whole package becomes costly too. Subscription based ERP model allows you to buy only what you need and then scale as you grow. It also offers a ‘freemium’ model, or a limited time ‘free trial’ option. Pay for it only if it works for you else not.

Enjoy convenience

Subscription-based pricing is convenient in the sense that you have access to up-to-date products all the time. You won’t have to wait for updates to be installed and face no downtime as it is cloud based software. Stay assured that all the users are using the same version of the software. Also, using this model allows for a more agile implementation cycle and faster time to value.

How to switch to a subscription based ERP software?

There is a rise of demand for ‘pay per use’ model. Switching to a subscription-based ERP transforms your business for good. It promotes greater flexibility, modernization, and agility for the consumer and probable income streams for the business.  But for any change in a company, you need to make your people ready. Choose a vendor wisely after knowing your business needs and their offerings.
For more on how Intech can help your business move to a subscription-based ERP pricing model, please contact us today.

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