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December 07, 2007Are SaaS Companies Vulnerable in a Recession?
According to an opinion piece posted on the Seeking Alpha blog, MGI Research thinks so. The analyst firm weighs in on predictions of a recession or economic slow-down and how that might affect emerging SaaS companies, pointing out that in slimmer economic times, companies might seek to reduce the number of seats needing licenses for software or might be less likely to accept "upsell" proposals.
MGI Research also points out that traditional on-premise vendors won't necessarily be doing much better in the event of a recession, but makes a good case for why SaaS companies are hardly immune to revenue loss in a recession.
Posted by krissidanielsson in
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