The Subscription Revolution: Why Renting Custom Software Beats Buying

A common piece of advice in professional circles is “don't build your business on rented land,”  but when it comes to the software that runs your operations, what if renting a custom solution is the smarter move? 

On a recent episode of B2B Business Class, host Robb Conlon spoke with Chad King, VP at Ayoka Systems, about how his company flips the script on traditional software development, offering tailored systems as a service to maximize client flexibility and value.

The Power of “Commander's Intent” in Software Solutions

Chad stated that Ayoka's shift to a rental model was driven partly by the realization that they were solving the same types of problems over and over for clients, such as building a scheduling system for every business that needed one. 

But the true foundation of their business lies not in coding, but in listening.

“Our superpower is figuring out what needs to be built in the first place,” Chad said. “We're good at building software. We're really good at helping someone identify how to address their problem.” 

Chad, a Marine veteran, explains this through the lens of Commander's Intent: they listen, but they don't take the client literally. 

“We take you seriously, but not literally. Right, and we're figuring out what is it you need versus what you said," Chad explains.

This rigorous, upfront due diligence ensures they build the right solution the first time, maintaining integrity when competitors might prefer to sell the same system multiple times. 

As Chad puts it, “It's often not easy to do the right thing, but it's usually pretty simple to know what that is.”

How Software Rental Grants Financial and Operational Freedom

The software rental model’s biggest appeal lies in its financial structure and operational simplicity. 

As an example, Chad cited a complex project that would have cost his client over a half-million dollars to build outright (a CapEx expense). 

Instead, Ayoka's rental model drastically reduced the barrier to entry and ongoing costs.

“The rental [cost] was about $60,000 upfront, and it's about $7,000 a month. If you do some math, it takes a long time to get to half a million dollars on that," Chad said.

He noted that this monthly fee covers maintenance, security updates, and hosting, turning a massive capital expenditure into a manageable OpEx (operational expenditure). 

This flexibility makes sense for businesses in fast-changing industries like trades, manufacturing, and logistics. 

Chad pointed out that this solution often reduces the number of third-party subscriptions a client needs by serving as a "single pane of glass" system that integrates existing software.

“We were able to nix two of their subscriptions,” Chad stated. “We did a data interchange with them so they don’t have to log into those systems anymore.”

Your Business Needs a Tool, Not Ownership

For small business owners, the instinct is often a want to own their systems, but Chad challenges this conventional wisdom.

“Do you need your business to own software, or do you need a tool to operate your business?" he asked.

He used QuickBooks as an example of a popular software that clients don’t directly own, reiterating that users just need the tool to do the job. 

Chad iterated that the critical factor for Ayoka’s clients is they always retain their IP for any truly unique “secret sauce” components that were custom-built for them.

“They can [still] rent their whole system. I custom build a piece for them that costs more, obviously, because that's not something I can reuse… [but] my client always owns their data.”

Chad’s final, essential advice for any business considering technology is simple: don’t rush into a software solution without fully understanding the problem you’re trying to solve.

“If you're taking on any technology project, spend more time figuring out what you need,” he said. “Make sure you're doing the right thing. Think through your process. Don't automate a bad process. Why would you do the wrong thing faster?”

For more insights from Chad King, you can listen to this episode of B2B Business Class on Spotify, Apple, or wherever you get your favorite podcasts.