Focus on ‘right-sized, zero-CAPEX alternatives’
Phil Wainewright recently wrote an article in ZDNet that referenced IDC’s forecast that SaaS growth will surge by more than 40 percent in the current year. He highlighted one particularly interesting statement:
“… the harsh economic climate will actually accelerate the growth prospects for the software as a service (SaaS) model as vendors position offerings as right-sized, zero-CAPEX alternatives to on-premise applications. Buyers will opt for easy-to-use subscription services which meter current use, not future capacity, and vendors and partners will look for new products and recurring revenue streams.”
This statement applies equally well to all cloud services, which convert expensive Cap-Ex investments into variable Op-Ex expenses and are low risk to adopt.
We’re definitely seeing many prospective customers looking for ways to offset cash outlays and a willingness to try new delivery models. We’re also confident that over time many of these customers will see cloud services as a compelling long-term alternative to in-house solutions.