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Tech World

 
Created by : Taniya Laskar, Project Architect, Leading IT solutions  | 09 06 2010 08:12:39 +0000
Industry : Technology ConsultingFunctional Area : Business Processes(Operations)
Activity:  1328 views;  last activity : 12 11 2012 12:54:23 +0000

Hi friends !!!

                             

We know, every company today requires a software to enhance their business. Dependence on software is increasing day by day, but the software given to you by the company, is for sale or service?

 
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Sale Vs Service
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Support   Support
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Thanks Taniya for your referral,I think SUPPLY of a product is sale.The Development of a software is nothing but the manufacturing a product to sell.A developer manufacture his product (here software) and do marketing for his/her product,finalise the deal and sell the product.The term SERVICE comes at the stage of maintenance of the product (software),at this stage the developer/support team provide their SERVICE for the product and get paid for their services.


By Dilip Kumar Pandey, RF Engineer, Ericsson India Pvt. Ltd.  09 07 2010 04:47:21 +0000
 
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Software companies normally don't sell their product but provide it in the form of service. You will have certain terms and condition to use the product which is called as license agreement. So even though you buy the software you don't have the full rights to it....... 


By Taniya Laskar, Project Architect, Leading IT solutions  09 06 2010 08:12:39 +0000
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Depends on the type of software. If it needs constant support/service and upgradation, it is sale + service. Other s/s like PC based games, entertainment softwares etc. you should treat them JUST SALE.
By Arvind Dorwat, Sr.Executive - Cleint Servicing, Paradigm Plus Marketing Communications Pvt. Ltd.  | 12 11 2012 12:54:22 +0000
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it a sale on there after
By Ajay Blacksmit, administration, india  | 03 30 2012 04:22:47 +0000
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As per sale of goods Act to constitute a sale transfer of pocession is necessary when you supply a software the buyer gets pocession of the software and uses the same for his needs/porpose hence supply of software is a Sale.
By Shashi Kumar U, Manager accounts & commercial, Mazda Concrete Products Pvt Ltd  | 03 24 2012 05:01:35 +0000
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Dear All i am new to this group need all your support
By P.Ramesh kanna, Assistant manager -Purchase, Dynaspede Integrated Systems (p) Ltd  | 03 15 2012 14:39:09 +0000
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I think your question would be about whether it is product or service, as sale can be of both. Software is a very broad term and depends on which software you are dealing with. I would say it is both. Custom built software can be a service whereas mass built software can be a product with lots of in betweens...
By Venkat Rao Ranganath Rao, Advisor/Outside Consultant, Free Lancer  | 03 14 2012 18:16:07 +0000
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Well.....this matter troubled Microsoft long ago and has been settled in the courts of US and subsequently accepted worldwide...supply of software is sale although the buyer is bound by a license agreement. Provided the supplier/vendor has a valid copyright claim over the software.


By Satadru Shastri, Partner, Mukherjee & Shastri  | 03 11 2012 16:14:18 +0000
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With reference to all suggestions I would like to suggest that it is all bat demand and supply anyone who needs any specific software then they purchase.there is a Service level agreement for the supply of software.
By navin sahal, store assist, bengal energy ltd  | 03 10 2012 00:33:49 +0000
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IN It industry we have three types of companies product based, service based and mixture of both.The supply of software is completely a sale provided with some sustainance according to the license between vendor and the user.The service based give services to there client on a particular product(s/w) but that is not supplying a SW.Like a company can use another company product to provide service to the third party in that case the first organization is buying the product from the second company that is sale and providing service to the client that is service.


By Yogesh Chaturvedi, Software QA Engineer Consulatnt, McAfee INC and Intel Company  | 03 01 2012 06:17:52 +0000
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With reference to all suggestions I would like to suggest that it is all bat demand and supply anyone who needs any specific software then they purchase it so it's clear that it's a sale henceforth we can call it sale
By siddivineetkumar , OPERATIONS HEAD, AKSHARA EVENTS  | 02 21 2012 10:36:06 +0000
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i think you want to ask software industry is selling industry or service industry. I think it is both selling and service industry. you sell software simultaneously you provide the service for the same. so both are applicable.
By Nitin Mehra, Writer, Thinker, Technology Seekar  | 02 21 2012 09:03:49 +0000
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Software is also a kind of product, so they are sold not served.
By Ardhendu Pal, Technical Support Officer, Convergys India Services  | 02 20 2012 10:40:43 +0000
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Sale, the guys sitting on the other end of customer support provide service
By Sarabjeet Singh Johar, BMS student, Mumbai University  | 02 20 2012 08:11:48 +0000
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it depends on how you deliver it to client. If your client wants to own the software as a COTS (Commercial Of the Shelf package..like MS Office).. you sell it.. If your customer wants to subscribe to your Software (as a services- SaaS).. like SalesForce.com CRM..then it is a service.


By Tarriq FerroseKhan, System Consultant  | 11 12 2011 20:21:05 +0000
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yaa its like sale for a service..
By Ankit Kabra, B.Tech/B.E. student, North Maharashtra University  | 09 09 2010 11:42:14 +0000
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Yes in todays era,the ultimate goal of any company is to make profit.So i think supply of any Software is SALE.
By Shelke Prashant Ganpat, B.Tech/B.E. student, VPCOe,baramati  | 09 08 2010 04:49:05 +0000
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SAAS-Software As A Service offered by companies provide license to an application to the customer on demand. For eg: Salesforce.com. Here the customer need to have just a browser for installation & access this application. Thus drastically reducing your implementation and start up time. Here product is sold in a service manner. However since license is provided on user basis you are still making SALE. Here you actually don't own the product but pay for the time/no. of users. If you go by def: A sale is the pinnacle activity involved in the selling products or services in return for money or other compensation.
By Anand Rahul, BUSINESS DEVELOPMENT EXECUTIVE, TES ELECTRONIC SOLUTIONS INDIA PVT. LTD.  | 09 07 2010 12:03:36 +0000
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Anything which is sold as a product is a SALE. Service is part of the entire sales process. it may be pre-sales service, after sales service or point of sale service.

with respect to software be it Networking software, business integration software, database software or operating system software they are products. When may be sold as a complete package or through license, it is SALE. Anything that is offered as installation, maintenance & tech support or customization is charged as service.


By Anand Rahul, BUSINESS DEVELOPMENT EXECUTIVE, TES ELECTRONIC SOLUTIONS INDIA PVT. LTD.  | 09 07 2010 11:50:35 +0000
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It depends which way one is putting the service. even the service is supposed to be generating revenues (like education, hospital, repair and maintenance and other services). What we understand by sales is anything which is generating revenue on a regular basis for the organisation is sales and with same logic no one can deny the status of software  as sales.


By Surya B Kumar, Information Officer, CMIE  | 09 07 2010 05:48:12 +0000
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If the soft ware is charge able then its called to be a sale, but when its cost free then it will be a service like upgradation.


By Jyoti CHETANI, Freelancer, Equity Research/Analytics  | 09 06 2010 11:35:58 +0000
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We have off the shelf products let us for example - MICROSOFT OFFICE - if you purchase from MS or MS sales partner - it's clear SALE transactions as there is not service attached. What u get is CD/DVD/Media and License.

Now we have MICROSOFT offering same product on AZURE or Cloud based then it's SERVICE as product sold to you is itself a SERVICE rather than CD/DVD u use it as service. Another exmple is SALESFORCE.COM

So you have sale scenario of both software on Medias as well as Service. Both the purchase attract SALES TAX, IT TAX, Service TAX and EDU SESS as may be the case.

As Architect, I would like to design product which can be OFF THE SHELF as well as HOSTED... you as ARCHITECT know the NUTS and BOLTS of both the scenarios :)


By Hitesh Thakkar, Project Manager, Sun Microsystems India  | 09 06 2010 10:28:39 +0000
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AS PER ACT OF SALES TAX OR IT TAX ITS A SALE
By SOUMEN GHOSH, Accounts Executive/Accountant, VIRTUE TECHNOSIS SOLUTIONS PVT LTD  | 09 06 2010 08:50:32 +0000
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Dear Folks!!!

 I am of the viewpoint that:-

As S/w is intangible in nature so it’s a service and  V do not sell the services instead V render the services.

Furthermore Service Tax on information technology S/W has been intorduced in the year 2K8 thefore supply of S/W is service only and not sale.

 I fail to understand why S/W is called as S/W product?????

 Products R tangible in nature and V sell the product.

Warm Rgrdz

Harminder Singh Gumbhir

TSB(Tehzeeb Square Boy)

 Lucknow


By Harminder Singh Gumbhir, FA(Floor Associate), BP(Best Price)BWPL(Bharti Walmart Private Limited )  | 12 09 2012 09:32:37 +0000
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I'd say for services. It is true that many software companies make lots of money. Many different types of software serve many great purposes and they provide great benefits. They are helpful to lots and lots of people.


By Business Management Consultant, : I can provide you with Management Consulting & Counseling Services  | 08 08 2012 00:57:26 +0000
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if supply is based on client requirements it is service, but it is as where is model (ready made software) is a sale of software product
By Sivakumar.M , Programer, Windrolinx  | 03 17 2012 16:27:48 +0000
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according to me the supply of the software is the mixture of services and sale but service is more than sale, because software is product which needs after sale services and the user needs some basic training for operating the software.
By prachijindal , Pursuing MBA in Aviation management, Banasthali university  | 03 13 2012 13:45:33 +0000
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though supply of softwrare is sale in ecnomic terms,it is a service industry bcoz sofware denotes the actual statastics


By Davies francis, juniour accounts, caravel logistics  | 03 10 2012 12:44:56 +0000
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there is a Service level agreement for the supply of software. it provides a service to maintain and update the software.
By amit kumar srivastav, System Security, Orkash Services Pvt. Ltd.  | 02 19 2012 18:52:06 +0000
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it depends on how you deliver it to client. If your client wants to own the software as a COTS (Commercial Of the Shelf package..like MS Office).. you sell it.. If your customer wants to subscribe to your Software (as a services- SaaS).. .. like SalesForce.com CRM..then it is a service.


By Tarriq FerroseKhan, System Consultant  | 11 12 2011 20:21:21 +0000
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It gives emphasis on both. but its provides service by providing new s/w and hence increases sale
By sourabh shrestha, COGNIZANT Employee  | 09 08 2010 17:21:08 +0000
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i can say this will be more of Service then sales as it require upgradation and modifacations. as the firm grows. Service is Yes the thing which we sell to our clients. even all big CMM5 Level first only get money in Service.


By Yogendra Singh, Head (Techno Commercial), ComputerAble  | 09 08 2010 04:18:18 +0000
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