| Leasing often provides substantial benefits to
users, vendors and sales representatives - because it solves
problems and satisfies clinic’s and individual needs. Leasing will accelerate users' benefits of the
software. A lot of people, both at the user and vendor level, are not
aware that software is leasable. And yes, a lot of people at many
leasing companies and banks do not appreciate the fact that software
has value, even from a lending point of view. Software is something
that is useful and can have a long useful life, so it should be
leasable. SOFTWARE LEASING FROM THE USER'S
PERSPECTIVE From the viewpoint of the user, it is just about
the same as equipment leasing, except it's for an intangible, the
software and the software license. It is a method of paying for
software over time instead of a single upfront payment and the
functional equivalent of a loan from the leasing company or the
software developer. It is normally structured as a capital lease rather
than an operating lease. However, it is often accounted for as an
operating lease. WHAT ARE THE SPECIAL BENEFITS FOR A USER 1.Obtain all the licenses that are needed now to
supply all users. You have funds allocated in your budget for only some
of the licenses you need. You can arrange a lease for all the licenses
you need and still be within your annual budget requirements. 2.Include consulting, data conversion,
customization, and training costs in the lease. Bundling the individual
components of a project in one lease is normally simpler and tends to
result in level expensing rather than having some components expensed
upfront before benefits are realized. 3.You can own the license at the end of the lease
without additional payment. In fact, unless you clearly have only
a short-term need for the software, you should only execute a finance
lease where there are no additional payments at the end of the lease.
We think the value of software at the end of the lease is in most
cases close to, if not greater, than the value at the beginning. 3.Correct the failure of many accounting systems
to recognize the long-term benefits of software and related costs. A
lease will in most cases permit you to better match software expenses
with the period of benefit. SOFTWARE LEASING FROM DSI'S PERSPECTIVE From the viewpoint of the software developer
(DSI), software leasing is a sales and marketing tool which provides
users with a lease financing alternative to an upfront cash payment.
Leasing often results in an increase in revenues, a decrease in sales
time, and an increase in user satisfaction levels. WHAT ARE THE SPECIAL BENEFITS FOR DSI 1.Include training, installation, and
customization in the lease. Bundling the individual components of a
project provides our customer with one-stop shopping and avoids
expensing some items upfront before benefits are realized. 2.Obtain a strategic competitive advantage over
competitors which do not offer leasing alternatives to our
customers. 3.Neutralize the strategic competitive advantage
of competitors which offer leasing alternatives to our customers. 4.Realize the potential for additional licenses
for additional users, licenses for related products, and additional
charges for installation, training and customization that customers
require. 5.A master lease agreement with one-page add-on
leases allows us to offer users additional products with minimal
financing effort by the user. Software leasing is the leasing product of the
90's - and beyond. Used correctly, it can solve problems, satisfy
needs, and result in a win/win solution for everyone. DSI now offers leasing of MedServices. You can lease the base package of MedServices for $98.90 a month for 36 months. The base application includes Patient Demographics, Visits (encounters), Query Builder, Training CDs, 5 user License, Graphical Reports and more. After the lease, you will own a license for MedServices and can continue to use the software as long as the annual maintenace fee is maintained. To
recieve an application, please click Leasing Application. |
