Identify Required Functionalities:  Determine what features you want:  Start by determining what problem you’re trying to solve.  Will it be used to create documents, spreadsheets, graphics design, imaging, etc.
 

Does It Conflict with other software:  How well will it work with other applications you’re currently using.  Will you be able to open and work with other documents created in a different application you’re currently using. 

Is It Compatibility With operating system and Other Applications:  Software applications are written to work with specific operating systems and computers.  For example if you’re using a Windows 7 operating system with a PC you don’t want to get the application written to work with an OS X operating system on a Mac computer.

 How Many Users Will Use The Software:  You need to know not just how many users will use the software now but how many more will be using it in the near future.  This will determine how many license you need to purchase and it will have a price impact.

What Type of License Do You Need:  If you have a single user that’s easy, you just get a single copy of the software.  If you have multiple users there are some things to consider.

- Small Biz License:  Many software vendors offer a version of their software to          small businesses as a Small Business License.  This type of license will typically     come with a 5-25 user license.  This will enable you to install it on up to 25 computers. - Enterprise License:  Enterprise license is designed for large companies.  It can be installed on computers throughout the organization with minor restrictions.  It does not require that each installation be registered every time it is installed.  However, each installed copy may have to be activated.  This is done with a master password.  Enterprise licensing is cost effective for large organizations because the pricing structure is less than paying for individual licenses.  Pricing is based on a tiered volume structure, meaning the greater the size of your organization the less you ‘ll pay. - Per Seat:  This type of licensing simply means the number of individual computers that the software will be installed on.  It authorizes that specific computer to use the software.  For example, if you have 25 employees assigned their own computers you can buy a 25 per seat license that will allow for installation on each employee’s computer. - Per Server/Per Concurrent User:  This type of licensing is when the centralized server is assigned a license for a specific number of simultaneous connections.  This is based on the number of concurrent connections to a resource at any given time.  This type of software licensing is usually used where access to a centralized resources in a centralized server networking environment (such as network printers, databases, etc.) is required.  For example you may have 25 users, but at any given time only 5 users need to access the database on the network.  With a 5 user concurrent license only 5 will be able to simultaneously connect and access the database.  If the 6th person attempt to access it they will be denied.  When any of the first 5 logs off, the next person can logon.  - Subscription:  Subscription is the model of paying a fee for the monthly or annual use of the software.  For example, Norton Antivirus software requires an annual upgrade in order to  continue getting the current virus definitions which offers protection against new viruses.  Other software companies such as Adobe and Microsoft are moving to a subscription model.

 

Is Technical Support Available:  Be sure to ask what kind of technical support is available with the software.  If it’s the kind of software that is likely to have problems (such as operating systems) then you want to make sure that you have onsite and/or telephone support.  Ask what the response time is when you request assistance.  Will there be a 24/7 help desk?

Is The Cost Competitive:  Cost is always a factor on major purchases.  Shop around for the best price.  The functionality of the software will not change from vendor to vendor, but the price will vary.  Consider buying more license than is required if it gets you a discount on the price.  You will need the additional licenses as the business grows.

Are There Regular Updates To The Software:  Some software applications require constant updates in order to remain current and fix vulnerabilities.  Many operating systems and office applications come with this feature.  This will not apply to every type of application you purchase.

Is The Software Scalable:  Your business will grow over time so make sure that you have the option to add new users without a high cost.  Many software vendors lets you purchase a single license for their software and allow 3-5 different user installations. 

Is The Software Customizable:  Going forward you may want to customize a piece of software to meet your changing needs as your business evolves.  This is especially true for software you paid to be developed for your specific needs.  Hence, make sure that your software developer build in the ability for you to customize the application without having to call on them to rewrite the code.

Is the Software Easy to Implement:  It is important to minimize the time it takes to setup and use a piece of software.  Time is money.  The more time you have to spend figuring out how to setup the software and the more challenging it is to use the less productive you will be.  Every piece of software you purchase should be easy to implement and use.  How much training is required for new users?  The more time you spend in training the less time will be devoted to production.

a software buying checklist.