06 Mar 2013

How to save money on software licenses

Doing business in Australia can be hellishly expensive, and software license prices here are far higher than they are in other countries – a fact highlighted by an ongoing parliamentary inquiry. While you can’t influence the pricing decisions of software giants, there are some steps you can take to keep your costs down while accessing the software you need and remaining license-compliant. Software licensing is a specialist field that most companies don’t have an in-depth understanding of. It can be difficult to ascertain your exact compliance position and the best strategy for obtaining the software you need at the lowest cost. While you should definitely liaise with a licensing expert if your needs are anything beyond basic, there are some guiding principles you can keep in mind. Consider subscriptions A lot of software developers offer subscription options for businesses with changing needs, or who have a one-off project requirement for a particular software solution. Investigating monthly subscriptions where software is provided as a service can reduce your CAPEX on licensing and make sure money is only spent on licensing where and when it’s required. Talk to re-sellers Re-sellers who buy volume licenses can often provide licenses (and in-depth advice on compliance matters) at a lesser cost than would be incurred if you dealt directly with a software manufacturer. Before purchasing licenses – especially multiple, long-term licenses – you should speak to someone with specialty licensing expertise and experience working with the companies whose products you’re looking to license. Build your own If your business has vertical-specific requirements, licensing generic software may not be the best option to fulfill your needs. Partnering with a developer to create and implement a custom solution like a web-based app or new piece of software can have long-term benefits. In addition to providing ongoing cost-savings, it can position you as a tech leader in your industry and provide an additional revenue stream should you license it to competitors or partners in the future. If you would like to discuss your licensing or application development needs, contact one of our licensing specialists today. Contact Brennan IT.