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SaaS model will 'give code writers a cash boost'

Code writers for software firms will see an increase in profits when they sell software on a pay-as-you-go basis, according to a source.

Firms which write code for firms like Microsoft and Oracle will see a cash boost when software begins to be sold under the software-as-a-service (SaaS) model, reports the Wall Street Journal.

As end users demand the running payment basis, large software firms are beginning to adapt their software licences accordingly.

The SaaS model allows consumers and businesses to subscribe to the product on a monthly basis, usually meaning it is cheaper than a licence fee.

Gartner has predicted this market could top $19.3 billion (£9.8 billion) by the end of 2011, an increase of $16 billion on figures from 2001.

Ajay Kela, managing director and chief operating officer of Symphony, a firm which has implemented a few SaaS projects, said the technology "offers a lot of opportunity" for firms like his.

One exert warned last week that selling the SaaS model requires a "completely different mindset" to that of a licensed model.

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About Centennial Software / FrontRange Solutions

Centennial Software was acquired by FrontRange Solutions (www.frontrange.com) in April 2008. FrontRange Solutions develops Service Management, IT Infrastructure and Customer Relationship Management solutions that scale with the needs of mid-sized and distributed enterprises. The company – through its FrontRange, HEAT, GoldMine, Enteo and Centennial brands – offers a unique portfolio that has been chosen by more than 150,000 organizations worldwide to help improve the effectiveness and reduce the cost of interacting with external and internal customers.

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