What are the pros and cons of construction software subscription vs purchase outright?
Wednesday, January 25th, 2017
Want to buy construction software without the upfront cost? Why not choose a construction software subscription?
When it comes to buying construction software you have two options. In the table below we explain the differences. Naturally here at BuildingWorks we think the subscription model is the way forward, but we’ll let you be your own judge.
|Perpetual Licence (purchase outright)||Subscription|
|Licence validity – Perpetual.||Licence validity – 12 or 24 months.|
|Software licence alone. Annual support, updates and upgrades: not included and range from 18-22% of total cost of acquisition in extra costs p.a.||Software licence, support, updates and upgrades are typically included.|
|Delay in getting updates and upgrades until you renew support.||Access to the latest version of software as soon as it’s available.|
|CAPEX (capital expenditure). Perpetual licences, due to the larger upfront investment (i.e. one time) usually requires CAPEX funding and subsequent amortization over typically 3 years.||OPEX (operating expenditure). Subscription licences: funded as OPEX.|
|Usually installed on your computer or server.||Sometimes subscription software is run on the cloud (right to access licence) and not installed on your machines, sometimes desktop subscription installed on your computer. BuildingWorks is the latter and it combines the power of your desktop together with the flexibility of web access to your project files.|
Need more advice on buying construction software?
The table above is obviously just a snapshot of the factors to consider when to choosing to buy construction software. If you want to talk it through with someone in relation to your building firm then give us a call on 0117 916 7880. No obligation, just free expert advice.