10 STEPS TO BUYING SOFTWARE

This is guide to buying software from international expert in software buing - Sandra Parker.

1) Research

What’s the reason for this software? Time management, organizational database, etc?

What are the necessary features the software must have?

What are optional features that could be useful?

How much is in the budget for this software?

Getting preliminary research done is the first step in buying software successfully. Not only does it save you money in the long run, but it also allows you to fully grasp what your company needs and will need in the future. The process of finding the right software can be confusing since there are so many options out there. It's good to make a list of necessary features. Once you have that list it's time to find some actual titles that fit your needs.
With the advent of the Internet, finding software that fits has become easier and harder at the same time. There are so many options out there and sorting through them all can be time consuming. Fortunately there is one major resource out there, the search engines. If you don't have a particular brand of software in mind, you are probably better off going to a directory, like Yahoo! or a "pay for placement" search engine like Overture. Remember to type a general description like "project management software." Your search results will be mixed with mostly companies and third party vendors. If you're looking for more information on the particular software, check the company web site. If you're looking to buy, check out both the company and the vendors' sites, to find your best price.

Another resource that people sometimes overlook is CNET's Download, www.download.com. This site features all categories of software for business and pleasure. Best of all, you can download all programs right from the web site. However beware that not all titles are freeware. Some are shareware or demos of the full version. If you're curious to see what's out there, this site is a great place to start.

Going online isn't the only place to start your software research. You can try the more traditional approach of going to trade shows, word of mouth or just browsing store shelves. Going to a trade show allows you to view the software in action, discuss it with a company representative and collect information. Word of mouth is a great way to find out about a product. If you've heard great things you are more apt to buy that product. However, before jumping in headfirst and buying that software package, make sure it is really what your company needs. It may be right for some and not for others. Lastly, you can go to your favorite computer store. Browsing the shelves and speaking with salesperson is sometimes what you need to make that final decision. Just make sure the salesperson isn't convincing you to buy something you don't need.

Remember to take your time and really decide what your company's needs are. Printing out our online checklist is the best way to make sure you are getting exactly what you need for a reasonable price.

2) Cost

Are there any rebates available?

Will software increase profitability?

Are you paying for other features that aren’t necessary?

How much is the actual software?

How much are the individual licenses? (See Licensing below)

Will you have to upgrade systems to meet hardware requirements? (See Compatibility below)

In an ideal world cost wouldn't be a determining factor when buying software. Unfortunately we live in a world where we need and want the price to be right. Making sure you pay only for the features you need is the number one priority when it comes to price. The added features included in the more expensive software package might look appealing at first, but will you really need them for your business to be productive? Will your employees benefit by those extra features? If the answer to those questions are not a definite yes, than you should stick with the package that satisfies your basic necessities.

There are some unexpected hidden costs when you are purchasing software for a company. The first one is licensing. If you're planning on using the software on more than one computer, you will have to buy individual licenses for each. You also might have to buy the software all over again to get another license. Making sure your systems are compatible with the software is another issue. Memory upgrades are common in order for software to work properly. You can find more detail on these topics in later sections.

3) Licensing

How many users/computers do you need to license?

Is it possible for people to double up?

How long is the license good for? Forever, annually, monthly, etc?

We touched upon the topic of licensing in the section on cost, however the consequences of not licensing software correctly weren't brought up. Pirated software is a common thing on the Internet. Virtually any title is available for download; all you need is the registration key. You can find these on illegal "warez" web sites. It isn't recommended though, since getting caught with pirated software is a serious offence.
In the United States software piracy is punishable by statutory damages of up to $100,000 for each work infringed and may result in a felony conviction. Penalties for felony convictions include fines of up to $250,000 and imprisonment for up to 5 years. Licensing your software correctly is important. It isn't worth the chance of getting caught.
If you don't have enough money in the budget to license numerous copies of software, see if people can share a computer with the software on it. Doubling up may be cost efficient and it keeps all the information on one computer, in one place.

4) Compatibility

What operating systems does the software run on?

How much memory does it require to run?

How much disk space is required?

What speed processor is optimal?

What operating systems are on the office computers?

How much memory do they have?

How big are the hard drives?

What speed processors are they running?

Do you have enough computers that meet requirements to install?

Compatibility is only a big issue if you have older computers in your office. Most new computers are equipped to deal with current software demands. The only thing you have to make sure of with newer computers is that the software is compatible with the operating system you're running. If you're running Windows 95/98/NT you must buy software for that platform. If you're running a Mac OS, you must buy software for that, and so on.
If you want to install software on older computers there are three things you must keep in mind: processor speed, memory and disk space available. Almost all software will have a recommended section on the box, web site or brochure. There it will tell you what the minimum requirements to run the software are. Knowing what processor speed, how much memory and disk space you have to work with make everything a whole lot easier and you won't end up with something you can't use.

5) Learning Curve

Who needs to use this software?

How difficult is it to use and grasp all the important features?

How much will it cost to train employees?

Will you have to outsource training?

Are the time and resources available?

How long will this take for me and/or my employees to learn how to use? This is by far the most unpredictable aspect of buying new software. If there is a demo version of the software available you should download it and get a feel for how it all works. If there isn't, it could be hard to tell. This is a big reason why you don't want to get more features than you need. Taking the time to learn everything costs money and resources that could be spent doing something else.
Learning the software on your own could be complicated. If that ends up being a serious problem you could always outsource the training. Although it costs some money on your part, it might just be worth having your employees guided through the software, instead of struggling with it on their own.

6) Scalability & Flexibility

Can the software expand with your business?

Are more licenses available for purchase?

Are there plug-ins and/or add-ons that are available for purchase?

Is there a hierarchy (basic, premium, deluxe) that you can upgrade to?

Having your company grow is usually an inevitable change. It brings along more computers, bigger office space and more powerful software. If you're expecting your company to grow in the long term, why not purchase software with that in mind. Buy a package that includes upgrades and the option to boost the package from basic to deluxe. With the number of employees increasing, the number of computers in use will increase. If you need the software distributed on the new computers, you will have to buy more licenses. So when you're looking at software, make sure they have options for your expanding business, whether it is more licensing, upgrades, add-ons or plug-ins.

7) Purchasing Software Online

Will you download the software or have it mailed to you?

Is the vendor certified?

What do they charge for shipping and handling?

Is the order form securely encrypted?

Can you order offline as well? Phone, fax, etc?

Most companies allow you to download their products online and then have you fill out an order form to receive the registration number by e-mail. If you're using this method, it is critical that you save a copy of the downloaded set-up file and the e-mailed registration code. The best way to do this is to burn both items onto a CD and store it in a safe place, preferably in a different physical location. If you can't do that, just save them on your computer in a place where they won't be disturbed.
If you're buying software from a third party vendor online, you have to make sure they are a certified vendor. There are a lot of scams out there and if the offer seems too good to be true, it usually is. Make sure it is a trusted name of which many people have heard. Joe's Software doesn't have the same credibility as Amazon.com or Outpost.com. Also, ask ahead of time about shipping and handling. The software itself might be cheap but the shipping could be outrageous. Above all else, use your common sense. If it doesn't feel right, don't buy it.

8) Purchasing Software in Store

Are you purchasing an old version and not the new one?

What is the store’s return policy?

Is the store offering any rebates?

The most important thing to remember when buying software in a store is to not let the salesperson convince you of your needs. They are there to make a sale, and usually aren't looking out for your best interest. Make sure you do your research before you buy anything. Also check what the store's return policy is. Sometimes when you buy software on sale, you are not allowed to return it. If you plan on buying software that's on sale, make sure you know which version is the most current. Sales usually consist of software they're trying to get rid of so watch out for outdated versions.

9) Upgrades

Do you get free upgrades?

Are the upgrades online or mailed to you?

Do you get free patches?

When you buy software that is constantly evolving, it is important to receive upgrades whether they are free or not. Most companies, especially if you download their product online, will give you free periodic upgrades to download. The trick with these is to make sure that you don't upgrade your product to the beta version. Wait for the final release to come out. Beta versions are usually filled with bugs and other problems that your company doesn't need slowing it down.
Another topic that you should be concerned with is security and bug fixes. Not all programs are created equal, and problems do arise after the software's final release. Companies provide patches on their web sites for their specific products that will "patch" up the problems. With the whole world getting more and more cyber savvy, it becomes increasingly important to keep your sensitive information secure. Security patches are specifically designed to do that job and you should keep up to date.

10) Technical Support

Is help available by phone, e-mail, fax, or postal mail?

Are your questions responded to in a timely manner?

Can you access technical support 24 hours a day?

Is the support free? Or is it paid per increment of time? Or per question?

You never know when you'll need tech support, but knowing that it is there when you need it is comforting. Before you buy software, check if they have tech support available. Is it for a limited time only or for the life of the product? You want to find this out before you have any problems, because running into unexpected complications wastes time and money. A sign of good support is it's available 24/7 and you have a few methods of reaching them, like e-mail, phone, and fax. Also, consider the cost of the tech support. If it seems exorbitant, try to find a comparable software program. You know that, at some point, you'll need the support so make sure it will be affordable.

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