Centennial Article: SaaS vendors 'completely different' to up-front model

SaaS vendors 'completely different' to up-front model

Software vendors who are trying to enter into the software-as-a-service (SaaS) market are facing a completely different mindset, according to experts.

Companies who are attempting to turn to the subscription licence model, rather than upfront licence sales will find there is a "completely different mindset" needed, Chip Gliedman, vice-president and principal analysts at Forrester Research, told ITPro.

"There are a number of SaaS vendors doing very well," he stated, however these tend to be stand-alone SaaS vendors.

He told the website the approach to companies between the two different licensing models is a key difference, with SaaS relying on continuuing subscriptions and so having to build a better client relationship.

"The licence model puts the risk on the company buying the software. In the software as a services model, the vendor assumes more of that risk," Mr Gliedman added.

Open source has recently been championed as the future of the licensing industry, as it becomes more popular.

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Centennial Software (www.centennial-software.com) is a leading developer of asset management and network security solutions with more than five million licenses sold to blue-chip organizations around the world. Centennial's growing portfolio of solutions helps organizations better manage their IT infrastructure, maintain compliance and minimize operational risks. Centennial products are available through a global network of approved resellers and market-leading OEM vendors. The company operates offices in the USA, UK, Germany, Sweden and Australia.

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