Software product or service – how can you tell the difference?

When a company is looking for software solutions, this is often the starting point for time-consuming selection processes of a usually long and expensive solution search. Taking many criteria into account, the decision which investment to make should be as objective as possible.

Step 1: What are the economic and technical expectations of the solution?

The decision depends on criteria that are based on an economic or technical basis. Provided that the basic conditions for such an investment decision are suitably chosen, companies often have long operating cycles for the purchased software solution and thus often have high expectations of the return on investment.

In many of these decisions, the question about the purchase of a product or a service is not asked and therefore not consciously answered. This decision is an important feature when considering the Total Cost of Ownership (TCO).

Distinguishing real products and services

The process of making a decision is hard. The effects of a wrong decision afect the development of a company for years.

What happens if the wrong decision is made despite an intensive selection process? For example, because the decision-maker does not recognize the service? The offered product is not a product, but a service – a disguised service contract. Let’s focus on 5 theses, where you can distinguish products and services from the outside. 

5 Theses to avoid a wrong decision

What are the characteristics of real software products?

  • With real products, short-term licensing is possible without an individual contract, while services in long-term (1/2 year contracts) are often service components hidden in the supposed license price. Beyond that, there are of course discounts if the product is a real one, e.g. in case of long-term commitment or prepayment (10-20% are common). 
  • The offer of a Proof of Concept (PoC) by the provider is often a sign that there is no finished software solution: A real product has already proven itself in use by many other customers in various cases. In contrast, a PoC protects above all the service provider, who must first check his risk.
  • The customer does not have to change/contribute/understand anything about his processes or requirements when there is no real product (like data, other supplies): for integration, the service provider has to build everything individually “by hand”, so there are fewer standards that have to be met by the customer. For the customer’s cooperation, however, the product provider would like to gain more insight and understanding from the customer, as this reduces the total TCO, because the software customer can contribute with internal resources and does not have to pay (expensive) change requests or service retainers at the provider.
  • Feature requests of the customer are implemented 1:1 as described when there is no real product. Since only individual customers are affected by this, the implementation and conception is very fast and the service provider can use it to simulate product progress. However, these developments only benefit individual customers and the customer does not benefit from further development of the overall product.
  • Software vendors who sell a product usually offer different external service partners who can work on the system with him and the customer on an equal basis without having special tools or special rights levels (outside of usual rights/role systems). This makes the customer-user equal and so he can work on an equal footing and negotiate even for larger project orders. Different service partners in the portfolio help to create a natural market, comparability and higher service quality.

Is content automation software the right solution for your business?

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Congratulations - your use case has huge potential to make content creation with AX Semantics faster and easier.

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Congratulations - your use case has huge potential to make content creation with AX Semantics faster and easier. You can generate texts in up to 110 languages and streamline translation processes.

Sign up and start the free tour through the tool!

Nice Use Case for our software! With AX Semantics, these things can be excellently generated automatically and thus save a lot of resources. To automatically generate texts, our tool needs data as an information base.

Let's have a conversation to find out what information could serve as a basis for your texts.

Just fill out the form and one of our content experts will contact you!

With AX Semantics, data-based written content can be excellently generated automatically and thus save a lot of resources.

However, you only need a relatively small amount of text. Our tool, instead, is more worthwhile the larger the amount of text you need – or to realize completely new content formats which cannot be implemented manually due to time constraints.

If you are curious, feel free to take the free tour through the tool and see if it might be worth it for you.

With AX Semantics, data-based written content can be excellently generated automatically and thus save a lot of resources.

Our tool is more worthwhile the larger the amount of text you need – or to realize completely new content formats which cannot be implemented manually due to time constraints. Have you ever thought about category texts? Or personalized newsletters?

Take the free tour through the tool and see if it might be worth it for you.

AX Semantics is normally used to bring your data into written content. Signup for the free tour and see how that works with a real example - and then let's see together what we could do for you?

You have the best prerequisites to make repetitive writing faster and easier with AX Semantics. Number-based reports, studies or forecasts can be automated excellently with AX Semantics and thus save a lot of resources.

Sign up and start the free tour through the tool!

Using AX Semantics can save you a lot of resources. To automatically generate texts, our tool needs data as an information base.

Let's have a conversation to find out what information could serve as a basis for your texts.

Just fill out the form and one of our content experts will contact you!

With AX Semantics, category or product content can be excellently generated automatically and thus save a lot of resources.

However, you only need a relatively small amount of text. Our tool, instead, is more worthwhile the larger the amount of text you need - or to realize completely new content formats which cannot be implemented manually due to time constraints. Have you ever thought about category texts? Or personalized newsletters?

If you are curious, feel free to take the free tour through the tool and see if it might be worth it for you.

With AX Semantics, listing content can be excellently generated automatically and thus save a lot of resources.

However, you only need a relatively small amount of text. But this can be used in real time applications, driving your users to signup faster and better!

If you are curious, feel free to take the free tour through the tool and see if it might be worth it for you.

With AX Semantics, category or product content can be excellently generated automatically and thus save a lot of resources.

Our tool is more worthwhile the larger the amount of text you need – or to realize completely new content formats which cannot be implemented manually due to time constraints. Have you ever thought about category texts? Or personalized newsletters?

Take the free tour through the tool and see if it might be worth it for you.

With AX Semantics, listing content can be excellently generated automatically and thus save a lot of resources.

Our tool is more worthwhile the larger the amount of text you need – or to realize completely new content formats which cannot be implemented manually due to time constraints. Have you ever thought about real time applications, driving your users to convert faster and better?

Take the free tour through the tool and see if it might be worth it for you.

With AX Semantics, written content can be excellently generated automatically and thus save a lot of resources.

Our tool is more worthwhile the larger the amount of text you need – or to realize completely new content formats which cannot be implemented manually due to time constraints. Have you ever thought about real time applications, driving your users to convert faster and better?

Take the free tour through the tool and see if it might be worth it for you.

With AX Semantics you can bring your data into written content. Signup for the free tour, and see how that works with a real example.

AX Semantics is normally used to bring your data into written content. Signup for the free tour, and see how that works with a real example. - and then let's see together what we could do for you?

AX Semantics is especially worthwhile to use it if you create a lot of repetitive content. In terms of content, the texts you create always say something different, but the "events" repeat themselves. And that is also the point at which the tool scales.

Blog posts are usually not repetitive and not based on structured data. Therefore the implementation of blog posts is not the optimal use case.

If you are curious, feel free to take the free tour through the tool and see if it might be worth it for you.

This is Data: Data

Your use case might not be ideal to use text automation

Why? Our tool follows the rules resulting from the underlying data when generating content. For example, these can be tables with product, weather or other event data. If no data is available, the software does not know what to write about - therefore data is the basic requirement.

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