Trends Report

Demand Pricing That Matches Business Value — The Radical Sourcing Trend For 2013

January 4th, 2013
Duncan Jones, null
Duncan Jones
With contributors:
Christopher Andrews , Mark Bartrick , Ben Jennings

Summary

This report describes the software pricing and licensing landscape and explains why it makes it so important for sourcing and vendor management executives to implement Forrester's strategic software sourcing approach. The traditional pricing models that currently dominate the software market are obsolete and no longer match products' cost to the business value they deliver. Software buyers are wondering how technology market shifts such as social computing, mobility, big data, and cloud will affect the way they buy software. They hope that the technology revolution will bring greater commercial flexibility and fairness, but they see the old guard oligopoly fighting back against the rebel forces of change. This report identifies four software licensing trends that could and should result from these market shifts if sourcing professionals encourage and nurture them. We'll explain where the major technology providers are moving in the right direction and where they are clinging to obsolete models. We'll also identify where the technology revolution isn't wholly in buyers' interests. This report will help sourcing leaders refine their software sourcing strategies to favor the more forward-thinking and buyer-friendly vendors.

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