The joy of SaaS and the pain of the traditional software model

Grazed from Purchasing Insight. Author: Pete Laughlin.

Earlier in the week we wrote about the brave transition that Basware made from old school to new school thinking on software sales. To many if not most who take an interest in enterprise software, whether that’s from an end user or buyer point of view or from a software supplier point of view, the case for SaaS ranges from attractive to compelling. But there seems to be a significant community that remains wedded to the old school way of thinking.

I sit on the end user/buyer side of the fence and, for the benefit of those old schoolers on the other side of the fence, I’d like to describe from personal experience, the contrast between the two models, not from a functional perspective but from from a commercial relationship perspective…

Purchasing Insight logoSaaS model

The first and most obvious feature of the SaaS model is the pricing structure. While over time, the costs may well be comparable to the traditional model, it’s a much easier internal sale. Getting agreement to small or no upfront costs followed by regular costs proportional to the benefit delivered is much easier than a big license fee with no guarantee of an ROI…

Read more from the source @ http://purchasinginsight.com/the-joy-of-saas-and-the-pain-of-the-traditional-software-model/