We’re Still Madly Addicted To Buying Software Licences

Here at Lifehacker, we’re big on cloud-based services for both personal and work use. It seems that Australian businesses in general don’t share that view yet, with new survey data suggesting the vast majority would rather pay up-front for finance and other apps.

Picture by lydiashiningbrightly

A survey of 611 Australian small businesses conducted by finance software firm Sage found that very few businesses wanted cloud-based, pay-as-you-go software for finance, ERP and other functions. 95% said they would rather buy a payroll application, 88% said they would rather buy ERP systems, 84% said they wanted on-premises HR and 73% preferred on-premises CRM. (The sample of businesses, which had between 1 and 999 employees, was weighted to match overall ABS profiles of Australian businesses.)

Security concerns are, I suspect, a major driver here, but insisting on running and maintaining systems that don’t actually relate to your main business function seems short-sighted to me. Given the high cost of much specialised business software, it also seems unnecessarily expensive. What do you think?

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