September 26, 2008

Enterpsie software vendor says maintenance fee is free money !

I discovered an interesting Wall Street Journal post by Ben Worthen. The post highlights how traditional enterprise software vendors virtually really walk away with their customers money !

Safra Catz, Oracle's Co-president, said "we get to keep virtually all the money" our customers pay us for maintenance and access to upgrades. He continues to suggest that Oracle is any way going to have new releases notwithstanding customer payment. In short, for Oracale, like other enterprise vendors, maintenance is pretty much free money, about $10.5 billion worth in its 2008 fiscal and about $1.5 billion more than that this year.
When many customers just send you money for something you’re doing anyway, you literally can’t help [but increase profits],” said Catz.

So my thought to all enterprise software product customers who have not tried out SaaS - check it out and stop sending your cheques to finance Mr. Elisson next F-14 !
For advantages of SaaS solutions check out this page.

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