Pricing: The Case for Buying over Renting
As we explained in the section about the difference between prepackaged software and custom software, the per-user monthly licensing agreements actually penalize organizations for being successful.
First, the longer a company stays in business, the more it pays for the software over time.
Second, as the company grows, it pays more for each new salesperson it adds.
This means the total cost of ownership increases indefinitely
It's like renting a suit for work that has an ever-increasing monthly payment. The suit doesn’t get any better, it just gets more expensive.
Pricing for ACE's custom software is the opposite because the software is purchased, not rented or leased. As an organization grows and adds people to its sales force, the total cost of ownership actually decreases. As with a suit, you only pay when you need a little more tailoring. Time to let the waist out a couple of inches? No problem, and no need to buy, or rent, a whole new suit.