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RE: Actual Rate of Return

in LeoFinance2 years ago

Interesting subject this. It seems companies/vendors are being a bit "cute" or sneaky, looking to monetise everything they can. I must say I much prefer a perpeptual license and one off known cost rather than having to raise POs and CERs on an ongoing basis. One and done is a far better model for the buyer and the buyers should be pushing to retain it.

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It really depends on how much talent you have on site and the skill level they possess. For example, we use a hosted VoIP service versus hosting our own. That way we don't need house any servers or do the regular upkeep and patching of them. Instead, I just buy the phones, pay a fee per month and my vendor handles it all. If we were a bigger district I might have someone who could specialize in VoIP, but being a one man shop this fits better into our model.

In-house ICT services are being cut back I feel as there is less need for specialized people in some areas. However some industries will always have some level of on-prem service and infrastructure by need - for example military.

For sure.

Ya that's a good use case. My gripe is more on the switch and router vendor side where these Pay as you Grow models are being pushed on customer s. It's great to have an option, but it should be just that, an option.

There are some things I prefer to keep in house. Servers and networking is one of them.

Perpetual seems like a better deal for the buyer, but it depends on the product being sold. If it is continually being developed and advanced, the perpetual license falls a foul of being outdated quickly. If there is the expectation that it will be upgraded for free forever, that will never work, as there is no incentive to develop.