We are currently witnessing a real change in usage in the software world. In fact, the purchase of a perpetual license is gradually giving way to a rental model by subscription, including in Business Intelligence and dashboard software.
To acquire a Business Intelligence solution, companies have two installation alternatives, “On premise” (installation on site and therefore on their machines) or in “Software as a service” (Saas) (access to the functionalities of a software online and remotely) under two acquisition modes:
- the purchase of licenses (perpetual),
- the subscription (or rental).
The opportunity to take stock of these different acquisition methods and their respective advantages.
A profound change in software acquisition
When estimating the budget for a BI tool, companies have traditionally reasoned in terms of acquisition costs. They calculated the price of the license, to which was added the cost of 3 years of maintenance, and compared the offers on this basis (this is the famous “Total Cost of Ownership TCO 3 years”).
However, new offers calibrated in rental mode have appeared. Calculated per user and per month, they disrupt the traditional view of pricing for dashboard solutions. Thus, users are increasingly considering leasing as a new mode of acquisition.
With the democratization of SaaS software and the Cloud, IT budgets have gradually migrated to businesses, which want to solve their own problems: marketing, HR, etc. They use their operating budget (OPEX) to run software, rather than the capital expenditure (CAPEX) of the company.
What is more, purchase by subscription is more and more omnipresent in the way we consume: streaming platforms, gyms, mobile plans, etc. This method of payment has established itself in many areas of everyday life. Leasing is therefore a natural evolution in software pricing.
In order to meet the different business needs, BI DigDash Enterprise’s solution offers maximum agility:
- from a commercial point of view, the DigDash Enterprise software can be sold in perpetual or rental mode,
- from a technical point of view, the solution can be installed on the servers in an “On Premise” form or accessible in the Cloud thanks to a perfectly controlled secure hosting.
=>=> To read also: DigDash Enterprise goes full web
The main methods of acquiring a BI solution
As mentioned earlier, Business Intelligence solutions now offer two main purchasing models.
The perpetual license
The first, which is the most classic, consists of acquiring a perpetual license as well as maintenance services. At the financial level, this amounts to a cash payment of the total, in the form of capital expenditure (CAPEX).
Of course, this approach is beneficial to the seller. It offers simplified management, with a single invoice and direct cash flow. It also keeps the user, who commits to using the product over the long term.
However, from the customer’s point of view, this model, integrated into a sustainable operating logic, may be perceived as too restrictive.
With scalable rental, the company can set a scalable rent, to gradually increase the monthly payments based on the number of users.
Example: a company wants to register 500 users first, then 1000 the second year, 2000 the following year …
The rental model (subscription)
Software rental with subscription, meanwhile, results in an annual payment including license and maintenance.
The subscription offers more flexibility, by reducing the role of the IT Services Department (DSI) and avoiding delays, blockages and other technical problems. Finally, the cost of the BI tool has the advantage of being spread over time, while a one-off acquisition can seriously affect the company’s cash flow.
Rental subscription to a BI solution, a business-oriented model
Here, it is no longer a question of investment expenditure, but of operating expenditure (OPEX). This approach is very practical for the customer, who can better assess the budget of his BI tool by business, instead of establishing an overall IT budget.
Which model is best suited to my use? Explain your project to us ; our team of experts will support you in offering you the type of installation and acquisition method that is most relevant to you.
Choosing a solid partner to manage our rental offer
By entering into a partnership with Realease Capital, DigDash has taken a decisive step in migrating from a pure license sales model to a monthly or quarterly model.
A true bridge between the worlds of CAPEX and OPEX, this financial intermediary allows us to offer new and more flexible financing options to our clients. Rather than spending a hefty amount of money to acquire a license, companies can pay it over time to Realease Capital.
In addition, this partner has been able to secure us and support us, by studying our offer to understand the challenges, but also by setting up a process adapted to our commercial approach.
The rental model: a real asset in the Business Intelligence market
DigDash has always put forward its agility, as much for the installation, the configuration and the use of dashboards as on the commercial level. This flexibility, both in pre-sales, during the project and after deployment, is today an important differentiating factor. Key Accounts also like to find local experts, with whom to discuss and exchange views on the evolution of the software.
But funding is also an integral part of this agility: a point that even the biggest players cannot match. Budgetary constraints exist at all levels, even in Large Groups. This is why, just like in the technological approach, we must constantly be a force of proposal.
In addition, the shift to this subscription model prompts us to reinvent the way we provide our services to our clients. Unlike the purchase of a license, the rental gives the customer the possibility of terminating his subscription and changing the solution. Customer success management therefore takes on very particular importance. Supporting customers, providing them with tailor-made service, listening and available to them … All this becomes a full-fledged job that is carried out on a daily basis, with the aim of bringing them complete satisfaction.
It is only by offering exemplary service that we are able to renew the contract, and thus make this model viable in the long term. A real guarantee of quality for customers interested in scalable rental for their dashboard software!
13 July 2021