Feeds

SaaS superstars' cynical sales schemes make them dinosaurs-in-waiting

Quadrant-sketcher says elasticity fibs will produce snap-back of a new buying cycle

The essential guide to IT transformation

Distinguished Gartner analyst Robert P. Desisto has offered up an interesting theory: Software-as-a-Service (SaaS) giants are on the way to making themselves so bloated and cynical you'll want to find new sources of software.

Desisto (who we deeply hope has collaborated with someone surnamed Cease) popped his thoughts in a blog post that lays much of the blame for the possible extinction event at the feet of sales people.

“In my experience of reviewing 100s of contracts a year, SaaS vendor salespeople behave just like their on premise ancestors,” he writes. That behaviour sees them ignore the promise of elastic usage and payment models and instead go for lock-in with multi-year contracts that fix prices.

“This means there is no ability for a SaaS customer to pay for what they use,” he writes, lamenting the state of affairs because “This was supposed to be one of the foundational [sic] tenants of SaaS but has rarely been offered because SaaS vendors want large contract lock in.”

Users will enjoy this approach from SaaS players just as much as they enjoy it from vendors of conventional software, he argues.

“However, all it takes is one viable vendor to figure out the 'pay as you go' formula for applications in a market,” he concludes. “Once it happens, we will begin talking about those legacy SaaS vendors tied to a dinosaur business model and the whole replacement cycle will start over again.”

And if SaaS players are delivering on the promise of simple data export as well as they are delivering on the promise of elasticity, that replacement cycle will be a bitter one. ®

Build a business case: developing custom apps

More from The Register

next story
Assange™: Hey world, I'M STILL HERE, ignore that Snowden guy
Press conference: ME ME ME ME ME ME ME (cont'd pg 94)
Premier League wants to PURGE ALL FOOTIE GIFs from social media
Not paying Murdoch? You're gonna get a right LEGALLING - thanks to automated software
Online tat bazaar eBay coughs to YET ANOTHER outage
Web-based flea market struck dumb by size and scale of fail
Amazon takes swipe at PayPal, Square with card reader for mobes
Etailer plans to undercut rivals with low transaction fee offer
US regulators OK sale of IBM's x86 server biz to Lenovo
Now all that remains is for gov't offices to ban the boxes
XBOX One will learn to play media from USB and DLNA sources
Hang on? Aren't those file formats you hardly ever see outside torrents?
Class war! Wikipedia's workers revolt again
Bourgeois paper-shufflers have 'suspended democracy', sniff unpaid proles
'Aaaah FFS, 'amazeballs' has made it into the OXFORD DICTIONARY'
Plus: 'EE, how shocking, ANOTHER problem I face with your service'
prev story

Whitepapers

Endpoint data privacy in the cloud is easier than you think
Innovations in encryption and storage resolve issues of data privacy and key requirements for companies to look for in a solution.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Solving today's distributed Big Data backup challenges
Enable IT efficiency and allow a firm to access and reuse corporate information for competitive advantage, ultimately changing business outcomes.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.