Six Tips for Getting the Best SaaS Deal
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May 21, 2012 Purchasing software-as-service apps is different than buying on-premise apps. Savvy buyers will get a better deal if they are mindful of these six tips from SaaS experts.
By Ann All Feedback
Software-as-a-service is growing at a healthy clip, from global revenue of $12.3 billion in 2011 to projected revenue of $14.5 billion this year, according to Gartner. Strong growth will continue through at least 2015, when Gartner expects worldwide revenue to reach $22.1 billion.
Purchasing SaaS is different than procuring traditional on-premise software. Organizations that want to maximize the value they derive from SaaS should be aware of potential purchasing pitfalls and how to avoid them. Because SaaS is still relatively new, many organizations lack procurement and contract negotiation expertise, wrote Constellation Research CEO Ray Wang in a blog post. In addition, while SaaS contracts are less complex than those for on-premise software, they are generally not as simple as buyers may assume.
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