So you are in the market for a new project management software tool? One of the things you will have noticed during your technical research is hosting.  Many vendors in the market now only offer their systems as a SaaS or leased service.  In this model you pay for the users you want and the period you want.  And of course if you want to continue to use it, you have to continue to pay for it.  However for many people looking for a tool that might be a problem.  Perhaps in terms of the lifetime costs.  But also fundamentally so from an IT security perspective.  So in this blog post we look at Buy vs Lease, the pros and the cons.

buy vs lease; project management;software; saas; lease; on-premise

Buy vs Lease – why should I lease?

The ease of getting started is going to be your major benefit of a SaaS or leased solution.  As the vendor will be hosting it for you there is no technical prep and set up to do.  You won’t have to worry about accessibility and firewall issues.  Anyone you give a licence too will be able to access it, if they have internet access.  SaaS or Lease may also spread the cost of the system out over your period of use.

If your organisation has outsourced its IT and has a policy of Leasing all services then this might be actually your only available route. It should also be highly cost effective for short term implementations.

So the choice should be good, the costs should be clear and predictable, why would you consider anything else?

Buy vs Lease – why should I buy?

If you plan to use the system for more than a year or two then it will work out more cost effective to buy vs lease.  If you still have an IT department then you already have the infrastructure and skills to host it yourself, rather than paying a SaaS provider to do it for you.

When you buy and host yourself you are in control of the access to the system and the data security.  For many organisations in sensitive sectors this is essential.  Many SaaS systems are unable to support much personalisation because everyone gets the same thing.  When you host it yourself it is much more likely you can personalise aspects of the service to match your specific needs.

So if you look to buy you could be getting a much better long term deal, more control and greater flexibility.

Buy vs Lease – why not ask?

Most vendors push SaaS because they make more money from it.  The vendors also know that a SaaS model locks you in.  Because once they have your data moving is difficult and expensive.  So why not ask the vendors what they offer in terms of a Buy option and pricing?

Of course the best and most open vendors will offer you both choices, so you can decide Buy vs Lease which suits you best.  Here at PROJECT in  a box we provide both SaaS implementation with our Live Edition and Buy and host with our Enterprise Edition.

Hopefully this has made you think a little more deeply about how to source your new system.  You might also find the blog on how MEAT gets you value for money helps too.

Tagged on: