The software industry has been growing exponentially over the past few decades. As technology advances, more and complex software applications are being developed to solve various business problems. However, purchasing and maintaining expensive software licenses can be a huge burden for many small and medium sized businesses. Software rental service is emerging as a cost-effective alternative that provides temporary access to a wide range of business software.
Emergence of Software Rental Models
traditionally, businesses had to purchase expensive perpetual software licenses that provided lifetime access to an application. However, for many SMBs (small and medium sized businesses) it was a sizable upfront investment that tied up a lot of capital. Some businesses may need a certain software for a short period of time to complete a specific project. Others may want to try out different offerings before making a long-term commitment.
To address this issue, software companies and third-party vendors started offering flexible rental models where businesses can pay an affordable monthly or annual fee to use software temporarily without long-term commitment. This allows SMBs to scale their software access as needed and reduce costs significantly compared to perpetual licenses. Now all types of businesses from solopreneurs to growing companies can access powerful tools like CRM, ERP, accounting, project management with low monthly subscriptions.
Benefits of Software Rental Services
Cost Savings: Monthly or annual are much lower than perpetual licenses upfront. Businesses only pay for what they use which translates to 30-50% savings compared to buying licenses. There are no large capital expenditures required.
Flexibility: Rental terms allow scaling software usage as business needs change. Administrators can easily add or remove users every billing cycle. This flexibility to scale up or down is not possible with perpetual licenses.
No Long-Term Commitment: With rental models, there are no long contracts locking businesses into expensive multi-year agreements. Resources are not tied up for extended periods which allows adjusting budgets quickly in response to market conditions.
Try Before You Buy: Renting gives businesses the ability to test software and verify if it fits operational needs before making a long-term purchasing decision. Not all purchased licenses are optimal in the long-run.
Access to Latest Versions: Rental customers are often prioritized to get updates and upgrades to new software versions for no additional cost. This keeps them on top of ongoing innovation in features.
Types of Software Available for Rental
Accounting Software: Solutions like QuickBooks, Xero, Sage Accounting, etc. allow small business owners to manage finances, invoice customers, track bills and expenses with low monthly or annual rental fees.
CRM Software: Customer relationship management tools like Salesforce, Hubspot, Zoho CRM provide client interaction capabilities through contact management, marketing automation and sales tools at fraction of purchase price.
Project Management Software: For professionals and organizations managing projects, rental access to tools like Microsoft Project, Asana, Teamwork Projects make complex project coordination affordable.
Design Software: Design tools from Adobe, Corel, AutoDesk allowing graphic artists, engineers and builders to work on projects without large upfront investment through flexible subscriptions.
HR Management Software: Payroll, applicant tracking, benefits administration and other HR functions can be managed in the cloud with BambooHR, Gusto, Namely at rental costs.
Choosing a Reliable Software Rental Service Provider
With the proliferation of software rental companies and resellers, it is important for businesses to evaluate provider options carefully based on reliability, plans, reputation and level of support offered. Reputable vendors like TechSoup, Flexera, and SADA provide flexible lease terms on business-grade software from leading publishers through simple monthly or annual plans.
Enterprises should read reviews, check certifications and understand contract policies before committing to any vendor. Ensuring reliability of the service provider is key since software forms the backbone of business operations today. Flexible rental models through reliable vendors ensure SMBs have affordable access to software tools for growth without substantial costs or long-term commitment risks.
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it