The Cost and Benefits of On-Demand vs. On-Premise Procurement Software
“Procurement software enables organizations to save time, money, and effort throughout the procure-to-pay cycle. It has a direct and immediate ability to cut costs and control spending.
While there are dozens of procurement software solutions available, there are really only two types offered: “”on-premise”" procurement software and newer “”on demand”" procurement software.
With on-premise procurement software, a software vendor sells you a “”copy”" of their product for an up-front fee. You then buy the computer equipment necessary to run the software along with the other underlying programs you need (e.g. application server, database). You manage the installation and implementation process. You are responsible for keeping the system up-and-running and up-to-date.
With the newer on-demand model, the software vendor assumes much more responsibility. There is no installation process, no computer equipment to buy and manage, and no ongoing maintenance. Instead, the vendor runs the on-demand service for you. It is available without having to buy a “”copy”" of the software for an up-front fee. Instead, an all-inclusive monthly subscription covers the cost of the procurement software and the cost to manage and support the procurement software at an external location on your behalf.
This white paper outlines an approach to compute and compare the Total Cost of Ownership (TCO) for on-premise procurement software vs. on-demand.”
Pubsliher:
Coupa Software Incorporated
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