Is 'Owning software' the best approach.

What do you do when you need something? General convention is that we tend to buy it. But think about it. How many of the essential things do we personally own? Air - na! Water - no. Electricity - nako! Phone? Internet - NO. All of these are shared with others. So why insist on owning the software.

This economist post will awaken you to a new world of "Shared Economy".  If you haven't noticed, everything around you is available on rent. Destination management software is no exception.

The cost for building DMC software, that is any good, tends to go north of 1mn USD.
You will have to cover for

  • Full-time software-developers
  • Designers 
  • Servers
  • Product managers, etc
These are just one-time expenses before the system is even rolled out. What if the system crashes?
Who takes care of

  • Updates and Maintenance
  • Data security
  • Does it evolve as your business grow

These are the pertinent questions you need to answer before shelling out that much money which could otherwise be used in other business expansion plans. I have met DMC business owners who have spent large fortunes trying to build such systems. Some have failed miserably while those who succeeded have no clear advantage over the existing "rented" solutions commonly know as SaaS.

The key is to look out for existing solutions that are reliable, customisable to your business needs and are available on small monthly rental fees. So the next time when your Reservations Manager asks you to hire an IT team, ask her what for? Take pride in being part of the new 'Shared economy'.

Next week: Prime criteria to compare DMC software systems.


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