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An Insiders List Of 10 Things You Should Ask Before Buying Software
From a former insiders view these items are a must before
making the decision to purchase any off-the-shelf software for
your business. -Brett Johnson 1.What determines the software
price? Is it PerSeat or PerUser or Per Processor? The cost of
software is determined in many ways. The two most popular ways
are Per Seat or Per Concurrent User. Per Seat is determined by
how many seats in your business will be using the software at
any given time. On the other hand, Per Concurrent User is based
on a set amount of users that can access the software at one
time. (Example: 5 concurrent users means a program can be
installed on 20 machines but only a maximum of 5 people can use
the system at once.) Per Processor is calculated on how many
machines (PCs or servers) the software will be running on. Many
larger enterprise software applications use this method to
determine their prices.
2.What types of on-site services are included in the purchase?
Many programs that are higher in price should include some
amount of on-site services or support. If it does not, ensure
that both (service & support) are built into your contract
before purchasing. But, beware that this is the area where
companies make most of their profit. Some companies count on you
returning with requests for customizations of the software. Now
that you have the software and have spent significant time
purchasing hardware and dedicating resources, they know you are
already, half way in the pool; they also know that you will
have trouble refusing to pay extra money to get what you want.
These services can include anything from training classes,
customizations, or help with installation issues. In the case of
local software companies, keep in mind, they should
automatically provide some sort of on-site services (at a
minimum) before purchasing. This can only help to streamline
your implementation process and increase the likelihood of your
success, with the added benefit of a higher return on investment
(ROI), who wouldnt like to have that.
3.Is there a guarantee of satisfaction with their software? This
is most widely overlooked when purchasing software. Sometimes
unsatisfied users will expect a refund after deciding that it is
not what they want. My experience has been that once the
developer receives payment for software, it can take next to a
miracle to get a refund of any kind. Prior to purchasing your
next piece of software, be sure to find out their return policy
and number of days that you can have the software in your hands
and still be able to send it back to get a full or partial
refund. With custom developed software it can be even trickier
for the buyer, you will need to build this into the contract
before work begins. It goes without saying how important it is
to determine this up front in case you change your mind.
4.What is the turnaround time for getting bugs fixed? Some
companies will say that they will fix software issues as soon as
you find one. There are others that will compile the list of
bug fixes and release it on a scheduled basis convenient for
them. This can happen either monthly, bi-monthly, quarterly or
yearly. Neither path is better or worse, as long as you are
dealing with a reputable software company that stays true to
their word. Knowing this before purchasing the software allows
you to better handle your software end-users and enables you to
provide a more accurate time frame of when your users will see
changes or have their issues resolved.
5.How often do program updates go out and do they notify
customers? This is another widely overlooked key item. There are
two lines of thought that companies can use for updating
customers. The company might decide not to notify its customers
at all when updates rollout. They may think that if the customer
has a problem they will contact them. At that time would they
inform the user of an available update? Beware of this method of
service, or lack there of. Steer clear of companies that do not
provide this as an option to their clients. The second line of
thought would be for the company to notify its customers
regularly about updates. They may also offer and option of
including the customer on a mailing list. In this case be sure
that they have multiple contacts that are on the email
distribution list so that everyone who should know will not be
left out of communications loop. If the software company does
not offer either one of this options, you might want to
reconsider your decision.
6.Is the proposed software scalable in design? Software that is
scalable in design simply means that it can easily grow with
your business, at minimal cost to you. Factors include end user
customizations, current database structure, and inputs and
outputs like reports, and connectivity to your other database
systems. Scalability is very important for small businesses,
because they are dynamic in growth. No one wants to jump through
hoops of testing, development, customizations, and training, to
purchase software only to find out a year later that you have
outgrown it and you need to replace it. With proper planning at
the time of purchase only you can increase your chances for a
successful software experience.
7.In an effort to meet your business needs how customizable is
the system? If you require customizations to the software to
meet a specific need, a good rule of thumb is that it should be
no more than a 1/3 of the price of the software price. Never
forget that many times software companies will negotiate with
you on customization. As a customer any software company worth
your time should want to keep you happy. In some cases there may
need to be some give and take by both parties. A good rule of
thumb would be to always discuss your needs with movement
directly. Gatekeepers tend to drag their feet at times.
Purchasing software knowing that you will need to make major
changes should be a sign that you really need to take a step
back and look at all of your options including: in-house
development, outsourcing, partnering with software developers to
cut the price.
8.What are the typical hurdles that you can expect with your
planned installation? No matter what generation (e.g. 1yr 2nd
version, 10yrs 4th version and etc) the software is currently
in, the software company should at least be able to warn you of
the hurdles that they have experienced in implementations they
have done. If not, this should raise a red flag for you. The
software company should be keeping track of this type of
information, especially if they are constantly attempting to
improve their products. You will find that they sometimes run
into the same issues 2 or 3 times before they take notice and
take action to investigate and resolve it before future
installations.
9.What are the hours of support and how does their support
department operate? Whether you are across town or on the other
side of the world, if you need help and support is not available
to you, the only option will be to take the system down for an
unknown length of time and wait for help. Before getting married
to a software company by purchasing their product, find out
where the company is located and if the company has what I
define as a passive or active customer support system.
Follow-up with pointed questions like, Will you only return my
call at certain hours of the day? Will I have to leave
messages and wait at the phone for your callback? Will I have
a direct call back from a representative or will I be reassigned
to someone different every time I call? Finding this
information out earlier rather then later should give you peace
of mind when an urgent situation or quick answer is needed.
10.Ask if there is a list of items have been requested to be
included in the next update of the software? If possible also
request a date of completion for the items on the list. Before
they say no, put them at ease by letting them know that your
goal is find out what features they might be including so that
you can plan ahead for your business. Chances are that if
someone requested something, you also be able to make use of
this feature. Also obtaining this list will benefit you in three
other ways: 1.If you know that a feature is forthcoming, you can
notify users beforehand and seek feedback from them on whether
this is something they would like also. 2.If the item on the
list is something need, be sure that you make it known to the
gatekeepers, with emails or phone calls to the software company
to ensure your item is not lost in the shuffle, which happens
more than you my realize. 3.When you are given such a list
review it carefully, you should be able to determine the
direction that the software company is going. Are they on a path
dictated by their client requests? Are their frequently little
items that are minor in nature on the list? (Could be negligible
depending on the application) or Are their obvious items on the
list? (If this is the case their testing practices may need to
be reviewed to your satisfaction.) Or are they adding items in
an effort to get you to purchase add-on items that you will
never use?
About the author:
Brett Johnson is the principal advisor and owner of Johnson
Advisory Group. While dawning many hats with a leading training
and compliance software developer he as succeeded in providing
professional, and honest service to his many contacts. He has
trained and consulted hundreds of companies both public and
private businesses across the country on the pitfalls of
software implementation.
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