1. What determines the price of the software? Is it per seat, per user or per processor?
The cost of the software is determined in many ways. The two most popular ways are Per Seat or Per Concurrent User. Per Seat is determined by the number of seats in your business that will be using the software at any given time. On the other hand, Per Concurrent User is based on a certain number of users being able to access the software at the same time. (Example: concurrent users means that a program with a 5-user license can be installed on 100 machines, but only a maximum of 5 people can use the system at a time.) Per Processor is calculated on how many machines (PCs or servers) the software will continue to run. Many larger enterprise software applications use this method to determine their prices.
2. What types of face-to-face services are included in the purchase?
Many programs that are priced higher must include a certain amount of services or support on the site. If not, please make sure that both (service and support) are included in your contract before you buy. But keep in mind that this is the area where companies make most of their profits. Some companies count on your return with requests for software customization. Now that you have the software and have spent a lot of time buying hardware and dedicating resources, they know you are “halfway there”; 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. For local software companies, please note that they should automatically provide some form of onsite service (at a minimum) prior to purchase. This alone can help streamline your implementation process and increase the likelihood of success, with the added benefit of a higher return on investment (ROI). Who wouldn’t want to have that?
3. Is there a satisfaction guarantee with your software?
This is often overlooked when purchasing software. Sometimes dissatisfied users will wait for a refund after deciding it’s not what they want. My experience has been that once the developer gets paid for the software, it can be almost a miracle to get a refund of any kind. Before you buy your next piece of software, be sure to find out their return policy and the number of days you can have the software in your hands and still be able to return it for a full or partial refund. With custom developed software it can be even more complicated for the buyer, you will need to include this in 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 response time to correct “mistakes”?
Some companies will say that they will fix software problems as soon as they find one. There are others who will compile the list of “bug” fixes and release it on a schedule and convenience for them. This can occur either monthly, bi-monthly, quarterly, or annually. No path is better or worse, as long as you are dealing with a reputable software company that stands by its word. Knowing this before purchasing the software allows you to better manage the end users of your software and allows you to provide a more accurate time frame of when your users will see changes or resolve their issues.
5. How often do you release program updates and notify customers?
This is another key element widely overlooked. There are two lines of thought that companies can use to update customers. The company might decide not to notify its customers at all when the updates are rolled out. They may think that if the customer has a problem they will contact them. At that time would you inform the user of an available update? Be careful with this service method, or lack thereof. Stay away from companies that do not offer this option to their customers. The second line of thought would be for the company to notify its customers regularly about updates. They may also offer the option of including the customer on a mailing list. In this case, make sure they have several contacts who are on the email distribution list so that everyone who should know isn’t left out of the communications loop. If the software company doesn’t offer any of these options, you may want to reconsider your decision.
6. Is the proposed software scalable by design?
Software that is scalable by 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 such as 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 the hoops of testing, development, customizations, and training to buy software only to find out a year later that they’ve outgrown it and need to replace it. With proper planning at the time of purchase, only you can increase your chances of a successful software experience.
7. Can the system be customized to meet your business needs?
If you need to customize the software to meet a specific need, a good rule of thumb is that it should not be more than 1/3 of the price of the software. Never forget that software companies will often negotiate customization with you. As a customer, any software company worth its salt should want to keep you happy. In some cases, it may be necessary to have a give and take on the part of both parties. A good rule of thumb would be to always discuss your needs directly with management. Guardians tend to drag their feet at times. Buying software knowing that you’ll need to make major changes should be a sign that you really need to step back and consider all of your options, including: in-house development, outsourcing, and partnering with software developers to bring down the price.
8. What are the typical obstacles you can expect with your planned installation?
Regardless of what generation (eg, 1 year, version 2, 10 years, version 4, etc.) the software is currently on, the software company should at least be able to warn you about the obstacles they have experienced in the implementations they have made. If not, this should raise a red flag for you. The software company should keep track of this type of information, especially if they are constantly trying to improve their products. You will find that they sometimes run into the same issues 2-3 times before realizing it and taking steps to investigate and resolve it before future installations.
9. What are the support hours and how does your 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, your only option will be to take the system offline for an unknown amount of time and wait for help. Before you marry a software company by buying their product, find out where the company is located and if it has what I define as a “passive” or “active” customer support system. Follow up with direct questions such as “Will I be called back only at certain times of the day?”, “Will I have to leave messages and wait on the phone for a call back?”, “Will I get a direct callback from a representative or will I be reassigned to someone different every time I call?” Finding this information sooner rather than later should give you peace of mind when an urgent situation or quick response is needed.
10. Ask if there is a list of items that have been requested to be included in the next software update. If possible, also ask for an end date for the items on the list.
Before they say no, reassure them that your goal is to find out what features they might include so you can plan ahead for your business. Chances are if someone requested something, they will also be able to make use of this feature. Plus, getting this list will benefit you in three other ways:
1. If you know a feature is coming soon, you can notify users ahead of time and ask for their feedback on whether this is something they would also like.
2. If the item on the list is something you need, be sure to let the gatekeepers know, with emails or phone calls to the software company to make sure your item doesn’t get lost in the shuffle. This happens more than you realize.
3. When given such a list, review it carefully. You should be able to determine the direction in which the software company is heading. Are they on a path dictated by the requests of their customers? Are there often small items that are minor in nature on the list? (could be negligible depending on the application) o Are there obvious items on the list? (If this is the case, your testing practices may need to be revised to your satisfaction.) Or are they adding items in an effort to get you to buy additional items you’ll never use?
