3. Software

In order to process and access the information, software will be required.

Initial purchase of software

At the most basic level, an operating system will be needed. This is often included in the purchase price of a new computer but a company will probably have to pay extra for an operating system which will be suitable for a network.

Utility software will be required, some of which will be supplied with the hardware system e.g. file management software, other utility software might need to be purchased separately by the company.

Applications software will be needed for many tasks involved in producing and using information. It is likely that word processing, database and spreadsheet software will be needed by most companies.

Some organisations might need to pay for bespoke software to enable them to process and store information in a suitable form for their needs.

Upgrading software

New versions of software are released every few years which contain a larger range of features. Most companies will need to upgrade their software on a regular basis. This can be expensive.

Licences

When companies buy software what they are really buying is a licence to use it. Many licences have to be renewed annually, often at a large cost to the company.

If the company grows in size, they might need to upgrade their licences from a multi-user licence to a site licence which tends to be more expensive.

Support costs

If problems are encountered whilst using software then the company might need to contact a technical support help line. These are often charged at premium telephone rates.