Most businesses now rely on several software systems to run everyday activities. These include email, accounting, document preparation, customer records and internal communication. As these systems become more integrated, however, switching suppliers can become difficult and expensive.
What is the CMA examining?
In October, the Competition and Markets Authority (CMA) announced a new review. It is examining competition and customer choice in the business software market. In particular, the regulator is focusing on Microsoft, because so many UK businesses use its products.
The CMA is looking at three key areas:
- current licensing arrangements
- software compatibility
- the growing use of artificial intelligence in business software.
Together, these factors may make it unnecessarily hard for customers to combine products from different suppliers. Similarly, they may make it harder for businesses to switch to alternatives.
Why should business owners pay attention?
The CMA has not yet reached a final decision. Nevertheless, the investigation raises a useful question for business owners. How dependent has your business become on a single software provider? So, could businesses get more choice over software? Ultimately, that depends on the outcome of the review.
The benefits and risks of integrated systems
Integrated systems can offer substantial advantages. For example, they can simplify administration and make it easier to share information. They can also improve communication between different parts of the business.
However, that convenience can also create problems. For instance, a supplier could raise subscription charges sharply. Likewise, it could withdraw useful features. Furthermore, you may later want to adopt a competing product. If that product does not work easily with your existing systems, switching could prove costly.
How to review your software arrangements
Rather than waiting for a problem, businesses can benefit from reviewing their software regularly. A sensible review could include checking:
- whether you can export your data in a usable format
- whether your important systems can work with alternative applications
- whether you are paying for subscriptions you no longer need.
Take action now
The competition review may eventually lead to greater customer choice. Even so, businesses do not need to wait for the regulator before assessing their own position. Instead, you can take practical steps now. Firstly, understand your existing software commitments. Secondly, make sure you can always access your business data. Finally, avoid relying too heavily on one supplier. As technology continues to change, these steps can help you control costs and stay flexible.
Could businesses get more choice over software? Only time will tell. In the meantime, a little planning can keep your options open.
Get in touch
Want to review your software costs and subscriptions? Our team can help you understand your commitments and plan ahead. Contact us today to find out more.
