Executive Summary (This is a document excerpt)

Recessionary forces drive applications professionals to seek new delivery models such as software-as-a-service (SaaS), platform-as-a-service (PaaS), and other XaaS (X-as-a-Service) models. But with these options' upfront benefits in choice, value, and predictability come new ownership risks that applications professionals and business stakeholders should explore. Forrester's review of 11 vendors in SaaS enterprise resource planning (ERP), customer relationship management (CRM), and supply chain management (SCM) confirms that, motivated by heavy competition for new customers, these vendors remain vigilant in mitigating such end-user concerns. In fact, SaaS vendors continue to improve and refine subscription models for new buying scenarios beyond cost/user/month. Forrester recommends that all applications professionals include SaaS in their firm's long-term packaged apps strategy and that they take five key actions to mitigate risk while avoiding lock-in.

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