Identify and briefly explain five alternative strategies for acquiring IT applications in an organization.
Organizations have several options for acquiring IT applications. The major strategies are to (1) buying the applications, (2) lease the application, (3) use open-source software, (4) utilize software-as-a-service, and (5) develop the applications in-house.
These major strategies are briefly explained below:
(1) Buying the applications: This is also called off-the-shelf approach. The standard options needed by IT applications are often found in several industrial software package packages. Buying associate existing packages are often a cheap and time-saving strategy compared with developing the appliance in-house. Nevertheless, the buy option should be carefully considered and planned to ensure that the selected package contains all the features necessary to address the company’s current and future needs, otherwise, such packages can quickly become obsolete. You will decide the features that a selected package must have to be suitable.
(2) Lease the application: Leasing can be done in one of three ways: the first way is to lease the application from a software developer and install it on the company’s premises. The vendor will facilitate with the installation and often can supply to contract for the support and maintenance of the system. Many conventional applications are leased this way; the second way is to use an application service provided which becoming more popular; and the third way is to utilize software-as-a-service.
(3) Use open-source software: An organization can obtain a license to use an open-source software product and either use it as is or customize it to develop applications.
(4) Utilize software-as-a-service: Software-as-a-service refers to a method of delivering software in which a vendor hosts the applications. Customers access these applications over a network, typically the Internet, and have no control over the applications. Customers do not own the software package; rather, they pay for using it.
(5) Develop the applications in-house: In-house development can make use of various methodologies. The basic—backbone methodology is the system development life cycle.
Identify and briefly explain five alternative strategies for acquiring IT applications in an organization.
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