Influence of SaaS on SAP Pricing
Today SAP announced “flexible pricing”, allowing customers to effective pay for SAP software in a similar fashion as subscription style or SaaS pricing models. The rational presented was the current economic climate, however, I cannot believe this is the only factor. The pressure of SaaS vendors on the “traditional software” providers pricing and implementation models has to also be a contributor. Of course with SAP “SaaS” pricing the customers still need to buy hardware, support the Oracle databases and infrastructure, but also have the ability to customize.
Other companies I have seen have offered “SaaS” products in their marketing that turn out to be simply SaaS pricing, with traditional behind the firewall software.
Do these tactics increase customers and market share? It does offer more choices which is always good.
