Software Strategies Blog

Deciding Which Applications Belong on SaaS

The debate is getting louder by the week about which applications should move to SaaS versus be kept on-premise.  Wanting to it both ways, more and more companies are offering both SaaS and on-premise versions.

A recent report from Forrester, What CEOs Of Small Software Companies Need To Do In 2011 How To Find The Best Opportunities In A High-Growth Market, underscores the debates at enterprise software companies facing this dilemma.

A graphic from the report is shown below and served as the catalyst of the points show here:


Bottom line: Migrating to SaaS from licensed applications often leads to sales and profits dropping for two to three years due to the change in maintenance and renewal revenue streams.  Being smart about which applications get moved when and not deviating from the plan can mean the difference between being profitable or not.

Source:   What CEOs Of Small Software Companies Need To Do In 2011 How To Find The Best Opportunities In A High-Growth Market by Andrew Bartels with Christopher Mines, Peter Burris, Sarah Musto. July 7, 2011

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