Trend Report

Be Wary Of Licensed Software Geeks Bearing SaaS

Becoming A SaaS Vendor Is Disruptive And Challenging

Andrew Bartels
 and  two contributors
Aug 26, 2013

Summary

Software-as-a-service (SaaS) has become the hot trend in the software market, with growth rates in vendor revenues that are two to three times faster than the overall software market. As growth languishes for traditional on-premises licensed software, the vendors of these products have begun shifting to SaaS-style products and delivery. But CIOs need to be cautious about these software birds changing their feathers. The economics, operations, and business structure of a SaaS software vendor are fundamentally different from those of a licensed software vendor. In general, CIOs should opt for the SaaS products of a vendor that has begun as a SaaS vendor or one that can successfully go through the traumatic changes of being a true SaaS vendor.

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