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Is It Important to Own Custom Software Source Code?
It's less important to many of our clients.
In the past, a customer purchasing custom software would expect to receive a copy of the application source code at the conclusion of the project. Owning the source code had a number of benefits including:

  • Documenting the work that was completed

  • Providing a way for the application to be modified in the future

  • Proof of ownership and a way to define intellectual property (patents, etc.)

  • Insurance in the event that the vendor could no longer support the application.

For some businesses, these reasons and others continue to be a motivation to negotiate and pay for source code rights. With the advent of Custom Software as a Service, the value of owning the source code is lower for many businesses. Why?

  • They have no in-house technical staff and cannot use the source code to make changes

  • The complexity of the application is too great and there it would require expensive and specialized skills to take advantage of the source code, even for experienced third-party programmers

  • The dramatically lower costs that are associated with Custom Software as a Service make it financially advantageous to "lease" functionality, rather than own it.