A recent IDC survey of IT and line of business (LOB) professionals shows that more than 60% of respondents believe that now is a good time to negotiate steep discounts for traditional on-premise software. "In this economy, traditional licensing approaches are under fire, with steep license discounts and maintenance concessions the norm," said Amy Konary, program director, Software Pricing, Licensing, and Delivery. "In order to survive the downturn and position for growth in an eventual recovery, software companies will have to evolve their go-to-market approach, and subscription pricing and SaaS will play a key role."
This IDC survey also showed that organizations are highly interested in software pricing options that help shift spending from capital budgets to operating budgets. Additionally, more than half of C-Level executives surveyed are open to buying software from a small firm with a very short track record, if the price is good and functionality seems at least comparable.
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