InfoBusiness 2.0

The very terms “software leasing” and “software financing” are confusing to many businesspeople. This is due to the fact that software is typically not seen as something that is purchased over time.

This view is shared by both end-users, and the developers of software. Companies who think nothing of financing a vehicle or a new computer system will stress over how they will pay for expensive new business software. And the producers of software see no need for offering a software leasing or a software financing option.

But times are changing.

Third party equipment finance companies - companies who offer small and medium size businesses equipment financing and working capital - have responded to a need for software financing and software leasing. Thus, they are starting to include software amongst the equipment they finance or lease. There is one big overriding reason for this shift:

The High Cost of Buying Software

The simple fact is this: Software can be very, very expensive. Oftentimes more expensive than the hardware that runs it.

Now, keep in mind that when we are talking about software in this way, we are generally talking about “vertical software”. Vertical software is software that is written for a specific, narrow industry (this can include industry-specific point-of-sale software, ERP systems, specialized databases, etc). It is not software that’s available on the shelf at your local office supply store (the software you see there, even the business programs and operating systems, are “horizontal software” - they can be used across a variety of industries, and are relatively affordable.)

A good, clear example of vertical software is an auto parts store - they use software that’s specifically written for the auto parts industry. Another example is your local jewelry retailer - they likely use a point-of-sale system specifically made for the jewelry industry.

To understand how software financing and software leasing can positively affect a business, it is important to understand the advantages of vertical software first.

For most businesses, Vertical Software usually means far more efficient business processes. In the case of an auto parts store, for example, the software will already anticipate the thousands of automobile makes and models. And will almost certainly be updated every year. The jewelry store’s software will differentiate the subtle differences between two diamonds by any number of categories. And so on.

In fact, these “vertical” software programs are so effective, and become so crucial to day-to-day operations, that businesses often need this type of software to remain competitive. In many cases, it’s not an option to do without.

However, since the software is so narrowly focused, it usually comes with a hefty price tag. The developer will sell relatively few copies as opposed to a word processing program (which will sell in the millions), so they must get a premium for their work. Vertical software can sometimes reach five figures for a single license.

This brings an obvious problem: “Businesses need the software, but it’s very costly to buy outright.”

And that’s where software leasing and software financing come in - business don’t have to “buy” it upfront.

The Advantage of Software Leasing and Software Financing

The advantage of financing or leasing software is clear:

Software leasing and software financing take the huge up-front cost of new software out of the equation. Like most other business equipment, software is now beginning to be seen as a tangible asset (this was not always the case.) This means software can largely be treated as any other equipment purchase in the case of financing or leasing. A business can finance that new ERP system instead of having to budget a huge cash outlay.

This can be very beneficial to the bottom line, as software generally pays for itself over time. In fact, since “vertical” software almost always reduces the cost of doing day-to-day business, leasing or financing said software can actually create a positive cash flow right away.

But Who Offers Software Financing or Software Leasing, and how does it Work?

It’s true that software developers have been very slow to embrace the business model of software financing or software leasing. They would prefer to be paid up front for their software.

Likewise, banks, being part of an “older” industry, are also largely reluctant to finance software.

However, third party equipment finance companies who specialize in small and medium sized business equipment financing often offer attractive software lease and software financing packages. What happens is the equipment finance company pays the developer in full, and then provides the software to the end user under a finance or lease agreement, often at very attractive rates. In all actuality, it’s fundamentally the same as financing or leasing most other equipment.

Of course, like any other financing, the agreements can (and will) vary from traditional fixed rate financing to a “software lease” with a buyout at the end, etc. And the rates and terms also vary - your individual equipment finance company will have more details.

All in all, software financing and software leasing have definitely entered the business consciousness, and because it is so friendly to the bottom line, it is a business model that is here to stay.

About the Author:
Software Leasing and Software Financing are only a few of the services provided by http://www.crestcapital.com/software_financing Regardless of the size of your company, Crest can provide you with the equipment financing and working capital you need to successfully grow your business. Learn about financing options that can increase your bottom line and reduce your tax bill with a http://www.crestcapital.com/equipment_lease_calculator .

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In today’s information age, businesses thrive on communication and collaboration. An organization’s ability to share and distribute client lists, product information, and other critical data across and outside the enterprise, in a variety of formats (documents, reports, presentations, emails, images, spreadsheets, etc.) is critical to its success.

For many companies like yours, email has been the traditional method for sharing information. In fact, more than 75 percent of the average company’s intellectual property is contained in email messages and their corresponding attachments, according to a study by research firm Enterprise Strategy Group (ESG).

But sending documents back and forth can be time-consuming and redundant, and can result in information latency (a file may be updated between the time it is sent, and the time it is opened and viewed). It can also cause communication to become inaccurate and ineffective. Additionally, the use of email to distribute large files to multiple recipients can negatively impact the performance of your IT network. That’s why Internet analyst Gartner predicts that, by 2009, email will be replaced by more cutting-edge collaboration tools in at least 50 percent of all US companies.

One way in which businesses can improve the timeliness and availability of vital corporate data is by creating a shared folder that allows authorized users to retrieve, view, and edit files. These folders can be set up on a central server, a dedicated workstation, a network-attached service device, or your own desktop.

In order to keep the data contained in shared folders secure at all times, you must grant authorized users the appropriate permissions to access, edit, and delete files as needed. Additionally, you must implement a rigid data backup schedule, to protect files from being lost, overwritten, or mismanaged. While backing up shared data at least once a week is recommended, daily back-ups will provide you with the highest level of safeguarding.

A Virtual Private Network (VPN) can make it easier and more cost-effective to link shared folders and files together, and to maximize information flow and accessibility among remote users across your business. Some of today’s most common VPN and VPN-like products include Microsoft Groove Virtual Office, Nortel VPN Gateway, CheckPoint, and Cisco.

Another option for businesses that must share information between users that are not connected to the same network is a Web-based file hosting solution. These solutions provide a secure, high-speed environment that enables the movement of large files back and forth between locations. There are hundreds of third-party providers that offer file hosting services. Among them are SWMirror, File Burst, File Factory, My Data Bus, and The File Den.

If all of your users and their computers are connected to the same network, there are three ways to share documents and files:

1) Peer to peer

2) Servers

3) Network attached storage (NAS)

Peer-to-peer sharing is the easiest option. All Windows computers, by default, allow users to share any drive, folder, or file with any other user on the same network. To do this, you simply go to Windows Explorer^® and right-click on the drive, folder, or file you wish to share. Then, choose Properties, select the Sharing tab, and click on Enable File Sharing. Don’t forget to assign users with the appropriate access privileges. Consider prohibiting them from editing or deleting your files. Accidents are more common than you might think, and if another user unintentionally overwrites or deletes your document, you won’t be able to recover it.

Faster, more reliable, and more secure file sharing can be accomplished by dedicating one computer for the sole purpose of housing shared data. This will make documents and information readily available to authorized users, without impacting the performance of their individual workstations. The dedicated computer will act as a network server or file server. All you have to do to begin sharing information immediately is transfer the appropriate files to the workstation and grant user permissions.

Network storage devices provide yet another rapid, economical way to share electronic documents. These devices include hard-drives, a jack to connect the drives to your network, and a Web-based interface for configuring the solution and setting user access privileges. They can be conveniently purchased at any computer or office supply store. Well-known manufacturers of network storage devices include Adaptec, Iomega , and NetGear. For product feature comparisons, pricing, and availability, check Best Buy, CompUSA, Staples, Office Max, or Office Depot.

In addition to files, you can also share printers. This can help you significantly reduce costs and waste by allowing multiple users to utilize a single printer, instead of purchasing separate printers – and the needed toner and ink – for each individual computer. To share a printer, simply go to your Control Panel, click on Printers, choose the one you want to set as your dedicated shared printer, and set user access privileges.

Businesses of all types and sizes know that innovation is the key to smooth, efficient, and profitable operations. But understanding and evaluating all the available technologies on the market today – and deciding which ones are best for your company – can be an overwhelming task.

With thousands of products and vendors to choose from, and dozens of new offerings being introduced every day, many businesses find themselves asking:

• What are these solutions, and how can they help me?

• How do I put together an effective technology strategy that will align with my business goals?

• How much do these products cost, and what type of return on investment can I expect?

In this book, I will try to answer these questions and more by highlight existing, new, and emerging technologies. Each chapter will provide an in-depth look into specific category, discuss its uses and benefits, and offer some vendor recommendations.

At the end, you will have gained vital insight into available tools and technologies, as well as an understanding of how each one can add value to your organization. This information will enable you to put a successful technology plan into place, so you can improve the way you do business and increase your competitive edge.

1. Introduction
2. File & Printer Sharing

Special Report: 12 Surefire Signs Your Business Is Ready For a Server

3. Antivirus Solutions

Special Report: Consumer Awareness Guide: How to Keep Your Computer Safe from Crippling Pop-ups, Viruses, Spyware, & Spam, While Avoiding Expensive Computer Repair Bills

4. Network Security
5. Internet Sharing & Monitoring
6. Server-Based Computing
7. Email

Special Report: 5 Simple Ways to Avoid Getting an Avalanche of Spam

8. Internet and Web
9. Backup & Disaster Recovery

Special Report: The 3 Most Expensive & Deadly Computer Disasters That Wipe Out Small Business Owners…And How to Avoid Them

10. Business Continuity Planning

Special Report: What Every Small Business Owner Must Know about Protecting and Preserving Their Company’s Critical Data and Computer Systems

11. Voice-Over-IP (VoIP)

Special Report: The 7 Most Costly Mistakes Companies Make When Choosing A New Phone System… And How to Avoid Them

12. Bonus Tools and Ideas:

Free & Open-Source Software

Automation

Project Management & Collaboration Tools

Remote Access

Network Faxing

Unified Messaging

Video Security

Biometrics in Time & Attendance

Special Report: 5 Things You Should Know Before Buying a New Computer

Special Report: Consumer Awareness Guide to Choosing an Honest, Reliable, and Competent Computer Repair Shop

Special Report: Money-Saving Secrets Your Computer Consultant Doesn’t Want You to Know

13. Afterword

14. Technology Glossary

A lot of things happened in my company and my life since the last year.

We became bigger. Bolder. Created more great software.

I, on the other hand, became older. Got separated and divorced. (Now I don’t see my kids as much. Which is a real bummer

Started a few new projects. One of which, InfoBusiness2.ru is making huge waves in Russia.

Wrote about 20 books, 12 audio programs and 3 live seminars.

Too bad, most of it is in Russian.

My students vary from one of the top editors in Conde Nast to supermodels, from huge business CEOs to poor students, from retired grandmas to pick-up coaches, from top trainers to public figures…

And I will share some of my strategies with you.

P.S.
I am also moving this blog from xssoftware.blogspot.com to my this domain: www.infobusiness2.com

Wordpress is much simpler to work with than Google Blogger

Maximize Your Business with IT

10 Surefire Ways to Succeed with Technology

(Includes 9 Special Reports, Plus 7 Bonus Tools & Ideas)

by Andrei Parabellum

I just finished my new book: “Maximize Your Business with IT”.

You are going to see some of its content in this blog in the next few weeks.