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SaaS Week

Krissi Danielson

Rough Times Ahead for Software Vendors, Predicts Gartner

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Media outlet VNUnet discusses a new Gartner report that predicts that dynamics of the software licensing market will soon begin to hurt the profits of software vendors.

SaaS-based applications are getting more and more sophisticated, and with the lower cost of implementation and maintenance, some companies are starting to make greater demands of software vendors in terms of reducing licensing costs. In addition, new overseas markets that don't have to deal with legacy software environments tend to start from using low cost software and SaaS, the article suggests. Research VP William Snyder points out that today's software market is becoming something of a buyer's market, with increased alternatives available.

Covering the same report, CRM Buyer points out that software licensing costs are going to trend lower in coming years as CIOs look to reduce expenses.

On the issue of overseas SaaS growth, Business Line, an Indian publication, also reported predictions for SaaS growth in India (a growing market overall), particularly with small and medium-sized enterprises. The article predicts that Oracle and SAP will soon turn their eyes toward the market.

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