Why It’s Best To Lease Your Software Rather Than Sell It

Mar 18, 2020

software workThe past few decades have been game-changing for our everyday lives. Technological development managed to revolutionize almost every industry and positively affect everyone’s lives. Online, often mobile platforms play a bigger role in banking and finances than ever before. Other sectors, even manufacturing, are not lagging behind either.

In this rapidly developing world, technology becomes more and more widespread. It brings lots of benefits, easier access to certain services for many people and increased awareness about a range of matters. However, managing this ever-evolving industry is not as easy. An enormous number of software programs are created and launched each and every day. They cover almost every area and are designed by certain people – developers.

Writing codes and creating software is a job for developers – a source of income. Many of them work for different companies in a variety of fields. Today, every business needs a developer for a short or a long period of time. Thus, many are employed at clothing brands, commercial banks, insurance companies or even grocery shop chains as software developers. Not many might be aware, but even supermarket chains are now developing their own mobile applications for their customers, featuring bonuses and discounts.

It is true that software developers do not experience a shortage of job opportunities. They pretty much can work in any field they want to. However, some work either independently or for software development companies. Such businesses focus on producing software, either uniquely tailored for a particular company or a universal one that can be sold or leased to a larger number of institutions. They make all of their profit through such operations, by basically offering their products to other companies that might be interested.

Why is software so high on demand?

As mentioned above in the article, almost every industry nowadays requires well-maintained and supported software programs to adapt their services. Thus, software developers work hard to meet the demand and deliver adequate solutions for every existing or potential client. Companies that produce such software solutions are often specialized in specific fields.

For example, one of the fastest-growing areas that is being actively digitized is the gambling industry. A soaring number of online casinos are popping up all around the world. As a result, companies providing relevant software solutions for those, who want to set up an online gambling platform have emerged.

One of the most successful of such companies is SoftSwiss. It supplies clients with ready-to-use solutions, ensuring well-streamlined efficient services. As SoftSwiss and other companies in the field are specifically focused on a single segment, their clients usually get products that make them immensely popular due to their detailed features. Spinia.com DE, one of SoftSwiss’s biggest clients, have leased the company’s software. As a result, Spinia now does not hold the rights to the original product, but they are free to run it on their platform. Spinia’s representatives explain the decision, saying that leasing contracts allow companies to run even more games and introduce innovation without paying too much. However, many businesses prefer to lease, due to the limited budget and some added benefits. Moreover, the majority of software development companies are also more likely to lease their products out rather than sell them.

Selling vs leasing: which one is a better option?

Many companies, as well as individual developers, are solely dependent on other businesses that purchase or lease their products. However, deciding which one to choose is rather difficult for many. The key difference between leasing and selling is that in the first case, a developer or a development company is not expected to give up on the rights to a product. Thus, they maintain the power to use the software under particular terms and conditions, pre-arranged within the contract.

The other, more obvious one is that leasing is not permanent. The contract usually has a timeframe and a set of conditions, guaranteeing that the developer gets it back under particular circumstances. On the other hand, selling means that the product is gone forever and all the developer gives up all the rights to it.

Which one is better? It certainly is highly dependent on the type of product and the company. For gambling game developers, leasing is much more beneficial as games based on the similar origin can sometimes run on multiple platforms under the leasing contract, which would not be possible if sold.

In general, leasing has proven to bring many more benefits to developers and development companies as they manage to maintain rights to the product and are able to build future ones based on the already-existing ones. Moreover, leasing allows developers to stay in control over how their software is used by those who are running it.