Acquisition Strategies for Management Software

September 28, 2010

Fleet organizations in various industries have gained substantial savings in equipment management costs by using mobile asset/maintenance management software. But not many managers have considered using the software without actually buying it. According to Arsenault Associates, a New Jersey-based fleet-management software provider, leasing and renting work well, too.

Leasing generally is done by financing with monthly payments instead of paying cash up front and usually doesn't require a down payment. In many instances, leasing can include the basic software, various ancillary services, add-on options and annual Upgrade & Support Agreement fee.

Software rental occurs via the Internet, based on the application service provider (ASP) model. The monthly rental payment is based on how many people are using the program and is comparable to a company's use of an Internet service provider (ISP). An ASP provider should supply all the servers, software, communications, technical staff, infrastructure and training services.