Difference between revisions of "User:Shawndouglas/sandbox/sublevel4"

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[[File:Cost Risk Return.png|right|200px]]Inevitably, the topic of cost comes up early in discussions about the ideal clinical diagnostics LIMS. This is actually not all that surprising given that performance measurements such as ROI are common in the world of business. A LIMS is indeed an investment, couched in the idea that it will provide tangible and intangible benefits to the clinical lab and its operations. By extension, labs will look to get the most benefit out of their system for the investment they make, with a preference for lower costs. When investigating this aspect of LIMS acquisition, the lab will find that vendors have multiple software licensing methods, and they may also discover a variety of additional, sometimes unexpected costs and fees. The next two sections examine these aspects.
As a means to accommodate the different workloads, sizes and workflow requirements of laboratories, LIMS vendors have adopted multiple ways to pass on the cost of a LIMS to a lab. They may charge for use of the LIMS based on the number of named users of the system, the maximum number of users who will be logged in at any given time (i.e., concurrent users) or the number of specimens processed. Furthermore, a LIMS’ cost may be passed on in the form of a one-time license purchase or a regular monthly or annual subscription. Each has its own benefits, depending on the buyer.
 
* '''Named users licensing''': This licensing is based on the number of users (or, in some cases "nodes," which are simply any entities that access the software, including other systems, instruments, etc.). How these are counted can vary. They may be counted as named users, which bases pricing on the actual individual users of the system, even if they may only log in once in a while. In most cases, users may not use each other's login information, though this is prohibited regardless of pricing structure for good practice and other standard- and regulatory-based reasons.
 
* '''Concurrent users licensing''': This licensing bases pricing on the maximum number of users who will be logged in at any given time. You can define an unlimited number of named users in the system, each with their own login credentials. However, only the number of concurrent users specified in the license or subscription agreement may be logged in at any one time.
 
:It may be useful to look at an example comparison of named user and concurrent licenses. Imagine you have 10 users in your clinical diagnostic lab, but due to work processes, shifts or some other reason only up to six might ever be logged in simultaneously. Whereas this would require a named user license for 10, it would only require a concurrent user license for six. In the case of a large lab with upwards of 50 users, neither option may make sense. In some cases, a vendor may offer an unlimited user license, which makes sense for large labs looking for a flat fee for any number of users.
 
* '''Pay-as-you-go licensing''': While not common, some vendors may offer a per-specimen rate for use of their LIMS software. This sort of pricing scheme is useful, however, for contract laboratories looking to eliminate up-front costs and have a predictable cost basis for the work they are contracted for. This is particularly useful in the case of a cloud LIMS, as the contract lab typically doesn’t need to invest in additional support or system upgrades; they simply have an account set up, use the LIMS how much they need and get billed for it.
 
* '''Purchasing vs. subscription''': Does your lab want to own the software it wants to use or is it comfortable with “renting” the solution? The lab would look to either a one-time license fee or a subscription plan, respectively. If you have your own dedicated IT department and staff, you may prefer the former. Otherwise, a “software as a service” or SaaS-based (i.e., cloud-hosted) subscription model may be the better and more cost-effective way to go. Aside from local computing and internet access, IT costs remain negligible with SaaS. Either way, this license or subscription represents your up-front cost and, in the case of a subscription, it will also figure in your first year and ongoing costs. Though subscriptions may require several months or up to a year’s up-front payment, subscriptions tend to be less expensive than a one-time license fee and self-hosting.

Revision as of 17:52, 10 March 2022

As a means to accommodate the different workloads, sizes and workflow requirements of laboratories, LIMS vendors have adopted multiple ways to pass on the cost of a LIMS to a lab. They may charge for use of the LIMS based on the number of named users of the system, the maximum number of users who will be logged in at any given time (i.e., concurrent users) or the number of specimens processed. Furthermore, a LIMS’ cost may be passed on in the form of a one-time license purchase or a regular monthly or annual subscription. Each has its own benefits, depending on the buyer.

  • Named users licensing: This licensing is based on the number of users (or, in some cases "nodes," which are simply any entities that access the software, including other systems, instruments, etc.). How these are counted can vary. They may be counted as named users, which bases pricing on the actual individual users of the system, even if they may only log in once in a while. In most cases, users may not use each other's login information, though this is prohibited regardless of pricing structure for good practice and other standard- and regulatory-based reasons.
  • Concurrent users licensing: This licensing bases pricing on the maximum number of users who will be logged in at any given time. You can define an unlimited number of named users in the system, each with their own login credentials. However, only the number of concurrent users specified in the license or subscription agreement may be logged in at any one time.
It may be useful to look at an example comparison of named user and concurrent licenses. Imagine you have 10 users in your clinical diagnostic lab, but due to work processes, shifts or some other reason only up to six might ever be logged in simultaneously. Whereas this would require a named user license for 10, it would only require a concurrent user license for six. In the case of a large lab with upwards of 50 users, neither option may make sense. In some cases, a vendor may offer an unlimited user license, which makes sense for large labs looking for a flat fee for any number of users.
  • Pay-as-you-go licensing: While not common, some vendors may offer a per-specimen rate for use of their LIMS software. This sort of pricing scheme is useful, however, for contract laboratories looking to eliminate up-front costs and have a predictable cost basis for the work they are contracted for. This is particularly useful in the case of a cloud LIMS, as the contract lab typically doesn’t need to invest in additional support or system upgrades; they simply have an account set up, use the LIMS how much they need and get billed for it.
  • Purchasing vs. subscription: Does your lab want to own the software it wants to use or is it comfortable with “renting” the solution? The lab would look to either a one-time license fee or a subscription plan, respectively. If you have your own dedicated IT department and staff, you may prefer the former. Otherwise, a “software as a service” or SaaS-based (i.e., cloud-hosted) subscription model may be the better and more cost-effective way to go. Aside from local computing and internet access, IT costs remain negligible with SaaS. Either way, this license or subscription represents your up-front cost and, in the case of a subscription, it will also figure in your first year and ongoing costs. Though subscriptions may require several months or up to a year’s up-front payment, subscriptions tend to be less expensive than a one-time license fee and self-hosting.
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