Subscription-based software licensing

Getting the system you want at an affordable monthly fee

Research is showing that the way businesses prefer to procure software solutions is changing to software subscription licensing rather than outright purchase. More companies are acquiring application software on a long-term basis than ever before. Research group IDC have predicted 16.6% worldwide annual growth in this marketplace.

JK Internet, in partnership with leading finance company Syscap, have launched a new finance scheme to meet the changing needs of our customers. The new scheme, SoftwarePlan, allows our customers to acquire the software and services required to deploy a fully integrated internet business solution, but spread the costs of doing so by using a subscription based payment method.

This important step not only shows customers our understanding of the functional requirements of the solution, but how it impacts the business from a financial perspective.  Budgets, cash flow, cost and ultimately return on investment are critical to all business. We believe that SoftwarePlan provides a sensible and cost effective alternative to pure capital expenditure. 

Customer Benefits

There are several key benefits to your organisation as follows:

• Return on Investment – Spreading the cost of the solution will provide instant cash flow benefits to the business.  When this is coupled with the tax advantages of leasing we can demonstrate to the customer the earliest possible return on investment.  
• Software and Intangibles only finance – One of the key reasons that JK Internet have decided to partner with Syscap is their knowledge of the software and related “intangibles” requirement.  We both understand that that software is integral to any IT system and – as the relative hardware cost continues to fall – the element most companies wish to finance.  Furthermore our customers may require the funds to cover the cost of bespoke development, annual support and consultancy.    
• Protect Cash flow and/or Release Working Capital – Conserves valuable cash flow to be invested elsewhere in the business.  By releasing capital you have a greater ability to accelerate business growth.  
• Tax efficiency – The SoftwarePlan payment plan is structured to enable the business to offset up to 100% of the payments against any tax liability.  In many cases this will provide a lower Total Cost of Ownership when compared to a similar cash purchase.  
• Financial Planning – Converting all IT project costs into a single fixed monthly or quarterly payment over a fixed period will assist cash flow and budgetary planning.  
• Flexible solution with easy upgrades (Systems Change Option). At any stage during the agreement you are able to request an upgrade or additional services under the agreement. This is incredibly powerful as it allows for planned, phased implementations whereby a fixed budget is in place.  Alternatively it enables ad-hoc purchases to be made, which may be unbudgeted, without impacting the overall spend. 

Table describing the benefits of finance over cash or loan.