Friday, February 27, 2009

Despite SaaS adoption, critics remain weary

February 27, 2009 Published by  SearchCIO-Midmarket.com

IT News and Trends: Blog Edition

SearchCIO-Midmarket.com
Navigating your SaaS contract: Buyer beware?
By Kristen Caretta, Associate Editor

Even as CIOs face smaller IT budgets in a range of areas this year, one segment that still has traction is Software as a Service (SaaS). The subscription-based software delivery model provides an alternative to bulky, on-premise applications and is thriving in shops where CIOs need to deliver functionality quickly without a lot of up-front investment.

But buyer beware: The gold on the road to SaaS is often buried in the contract you negotiate, and some CIOs are left wishing they had done something differently soon after the ink has dried.

In a recent SearchCIO-Midmarket.com article, CIOs shared tips and advice for avoiding potential pitfalls in SaaS contracts, from contract duration to licensing fees and more. One CIO faced a requirement to buy a minimum number of licenses, which had to be maintained for the life of the contract. Adam Sokolic, vice president of product management at National Retirement Partners Inc. in San Juan Capistrano, Calif., lost 15 people in a layoff and was stuck paying for the licenses even though he didn't need them anymore.
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