Organizations use computers to run applications that carry out specific business functions.
Typically, organizations spend a serious amount of money to buy software. And that's just the beginning. Applications are typically upgraded every 12 to 24 months, and upgrades cost money, regardless of whether software is purchased anew or provided under an annual subscription or maintenance fee. It also buys the server hardware and the network and then rents it to the client, typically for a fixed period of time at a specified price. This arrangement, somewhat akin to leasing a car, means the client doesn't have to bear the up-front capital costs of the hardware and software but instead can pay for their use more gradually.