SaaS Pricing 'Not Written in Stone'

Ann All

Everyone seems to want to put a price tag on software-as-a-service, from traditional software vendors who insist that SaaS carries hidden costs, to analysts who say that the size of a business using SaaS makes a big difference, to prospective customers who just want a better handle on what they can expect to pay.


So a recent CIO Today article that offers cost breakdowns for several SaaS solutions from, NetSuite and a provider called OrderMotion caught our eye. The article does a nice job of attempting to compare costs not just for core pricing, but for add-ons like storage and support, which is where some folks say "hidden" costs are most likely to manifest themselves.


The most interesting comment by the author, by far:

"Based on my talks with both companies, my impression is that pricing is not written in stone. Flexibility above all prevails."

Flexibility, huh? Sounds like a sharp negotiator just might be able to get themselves a deal. Just remember that cost isn't everything. Those shopping for SaaS solutions should include such factors as vendor security, reliability, integration capabilities and governance into their evaluations as well.

Add Comment      Leave a comment on this blog post
Apr 24, 2007 6:37 AM Andre Andre  says:
Try tell Microsoft South Africa that prices are "not cast in stone" Current pricing would appear to be the old license prices devided by 36 (months). This will kill the SAAS market for providers Stone cold in the water. Reply
Apr 26, 2007 10:39 AM Rob Rob  says:
Andre ... I disagree with you completely. We have been selling SaaS applications for a number of years and the pricing model is not cost prohibitive. There are so many factors involved with pricing and other items that need to be considered eg. infrastructure and hardware cost savings.Mind you, it isnt right for all clients from a solution point of view but that is a different conversation as it is known that Client Server solutions have inherant benefits, as do SaaS solutions. The key is the partner or provider understanding the client needs and finding the right solution to fulfill those needs. Reply

Post a comment





(Maximum characters: 1200). You have 1200 characters left.



Subscribe to our Newsletters

Sign up now and get the best business technology insights direct to your inbox.