Is Pay-As-You-Go Software The Wave Of The Future?
With the number of cloud-based software offerings dramatically increasing, the options for using "pay as you go" software for businesses may soon be commonplace.
Recently, even government agencies under strict budgetary constraints such as the CIA have considered doing this in order to gain access to the latest software technologies without having to re-negotiate existing expensive software licensing agreements. The CIA already uses programs from companies like Hewlett Packard, Oracle and SAP.
Some of the benefits cloud based applications are:
- Generally cloud based applications can have lower start-up/implementation costs and time frames. For a start-up business, this may mean the difference between using computerized registers and invoice calculators to write-up sales.
- Cloud software is generally more basic and intuitive, the learning curve is generally much shorter than with more expensive programs.
- Upgrade paths – Some cloud based applications have built-in upgrade capability that allows you to add features or upgrade to a full-fledged system.
Some of the Trade-offs are:
- Cloud based software can have functionality inhibitors built-in to it. This can limit some of the things that could be done in a more conventional environment.
- POS and Inventory Management System may be limited, for example doing inventory management, or Open Item Receivables.
- Monthly usage fees vary widely depending on the application and features.
- If Credit Card support is included as part of the application, the fees involved could be higher that with conventional software.
- System and application security is much more difficult in the cloud. There are still many stories of hacker break-ins on the net. This may be a deal-breaker for many.
- The "cable company scenario" may be present for some vendors. Creeping costs and poor customer service.
If you are interested in hearing more about cloud based Point of Sale systems, please contact the CCS Retail Systems Sales department