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Pay-as-You-Click vs Pay Per User: Which Software Model is Better for Your Business?

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Pay-as-You-Click vs Pay Per User: Which Software Model is Better for Your Business?

You know how much your software costs you. But how do you assess how much value you’re actually getting from it? Thanks to the cloud, assigning a value to software and making smart decisions about enterprise technology is easier than ever.

How It’s Always Been

In the past, understanding the true value of software has been difficult, because business owners generally only consider the number of users. You may purchase Microsoft Office licenses for each employee so that everyone is equipped with a productivity suite. This traditional approach covers the bases and makes Microsoft happy. But how much software are you paying for that’s actually being used?

Paying For What You Don’t Need?

It’s a fair question. Take a look at your own office productivity suite. Chances are, you’ve got some applications you use heavily, a couple more that you use occasionally, and at least a few you haven’t opened once. Yet you paid good money for access.

The Alternative

What if, instead of paying for software for everybody in your company who might use it, you only pay for software they actually use? This concept could change the paradigm of how software is sold to and utilized by businesses. Thanks to cloud computing, this could become the norm.

Quoting ITProPortal

“…in 2017, the amount companies are willing to pay for software will be determined by levels of engagement rather than number of users. Cloud and mobile apps provide unprecedented visibility into these usage patterns, allowing companies to see more clearly how much value they get for their software. Smart companies are waking up to the reality that they should only pay for what provides demonstrable value. Slack has been on the cutting edge of this trend, and in 2017 other application providers will follow suit.”

Pay Per Click?

It makes sense. When a cloud provider hosts an application, they get to see exactly how the software is being used. This includes how often the application is opened, how long a session lasts, even every click within the application they host.

So why not charge accordingly? As competitive as enterprise technology is, it won’t be long before a pay-as-you-click model becomes an option for your next software purchase.

This is just one of the fascinating ways the cloud is streamlining business today. Did reading this article make you rethink how you use and pay for software? What metrics do you use in order to determine if a software is earning its keep? Share your thoughts in the comments below.

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