There has been a lot of speculation about falling SaaS prices from bloggers and industry insiders -- even a detailed Forrester report predicting a long term drop. Now we're starting to see some confirmation from vendors. NetSuite recently dropped the price on their CRM SaaS service by fifty percent for any Salesforce customers that are willing to switch over and sign a one year contract.
Truth is, both vendors are probably feeling a little price conscious, with Microsoft's CRM Live going for just $59 per user per month --- Salesforce and NetSuite fetch $125 and $129 receptively. And therein lies the problem, too many vendors with too similar offerings . NetSuite knows their CRM service is essentially the same as Salesforce's, and they're trying to capitalize on it. Will more aggressive pricing and undercutting spread across the sector as a whole? It depends on how much duplicity really exists and how many vendors think they can gain an advantage from it.