Software is available in a variety of forms - it can be purchased out of the box off a shelf at an office superstore, downloaded from a vendor Web site, or even accessed on a rental basis over the Internet from an Application Service Provider.

You can buy it as a single-user application, or with multiple user licenses that eliminate the need for several boxes of the same program.

For the most part, choosing the right outlet and licensing structure for your purchase depends upon the type of software you're interested in.

Boxed. Local retail outlets usually carry a broad range of off-the-shelf, boxed business programs. In this Internet-heavy world, buying retail has become a less attractive way to pick up the latest software titles.

That's because most stores' software inventory can't match what's available on the Web, and prices are much more competitive online than in a traditional over-the-counter setting. Internet vendors often offer titles below list price to beat prices on other sites.

However, going to retail outlets and third-party vendors for off-the-shelf programs may still be the right choice for some businesses. Establishments like this stake their business on a working knowledge of programs and their scalability. Your local computer shop may charge a higher price for a financial management program, but it may also be able to advise you on which program best matches your operating system.

You may also be better off having a few resellers quote you prices rather than ordering 20 copies online if you're interested in buying a program for multiple employees. (Of course, an even better option is to get multiple licenses for that program. (See our pricing section for more.)

But the future of software purchasing is tied to the Internet, and companies are creating new ways to sell and distribute applications.

ESD. Some boxed software is also available through Electronic Software Distribution (ESD), a process by which you download the program directly from the vendor's Web site. You can save about 10% off the software price (and that doesn't include shipping savings) if you choose to download the program rather than buy it in a box.

Currently most sites offer multiple timesaving downloads, but major titles such as Microsoft Office are still only available by delivery. However, the expectation is that eventually all software will be downloadable.

While this will significantly reduce the amount of time you have to wait to install a program, be aware that most IT folks prefer to have a hard copy around in case of problems.

ASPs. And of course, then there's the option to rent software rather than buying it yourself. The rise in popularity of Application Service Providers (ASPs) means that you can access all kinds of software, from human resources management to email, over the Internet for a monthly per-user fee.

You can save up to 50 percent by renting an application rather than buying it, and you can usually start working with the software much sooner than if you had to install it on your network or individual PCs.

What's the biggest advantage of using ASPs? The time you save by not having to install software on your own computer, deal with bugs, troubleshoot or manage upgrades.

Keep in mind, however, that renting software from an ASP works best for businesses that require little or no customization. (Read our ASP Buyer's Guide for more of the scoop on ASPs.)

Custom-designed applications. Need some customized software? Applications tailored to a specific industry, or business, are best purchased through a software company. For example, if you are on the lookout for marketing software, you'll have a few marketing-only software companies from which to choose. And because of their specialization, they can sometimes customize a product to your parameters.

Calling in consultants makes sense if you need software designed specifically for your business situation. For example, if your company would benefit from an Intranet (internal-only online presence) but you don't have the internal resources for it, consultants could set it up for you.

Consultants are also often involved on the installation side of things; they can typically offer a competitive price on ensuring administration of a new software product is hassle-free.