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For Enterprise Architecture Professionals

Shape Your Apps Strategy To Reflect New SaaS Licensing And Pricing Trends

January 14, 2009


  • By R "Ray" Wang
  • with Mike Gilpin,
  • Wallis Yu

Why Read This Report

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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Table of Contents

  • The Recession Is Driving Increased SaaS Adoption
  • Apps Pros Seek Choice, Value, and Predictability from SaaS
  • Vendors Demonstrate Continued Evolution And Value Of SaaS Pricing Models

  • Adopt SaaS Benefits While Mitigating Risks In Your Long-Term Apps Strategy

  • SaaS Benefits Will Drive Apps Pros To Consider Broad Adoption

  • SaaS Model Resembles 1980s Mainframe And Service Bureau Lock-In Models
  • Supplemental Material
  • Related Research Documents