What Customers Want from ERP Vendors on Software Pricing

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June 15, 2009, 08:52 AM —  CIO.com — 

Every enterprise software vendor is hearing the same thing these days from their customers: "I need to cut my software licensing and pricing costs. What can you do to help me out?"

"Cost reduction" is, according to a Forrester Research survey of nearly 2,300 IT executives, the single most important goal for 2009.

But beyond that, what are technology decision-makers looking to get from their ERP, CRM, BI and supply chain application vendors?

A June Forrester report by VP and principal analyst Ray Wang, titled "Enterprise Software Licensing And Pricing Update, Q2 2009," shows that customers are keenly interested in choice, value and predictability when it comes to enterprise software pricing and ownership strategies. (The Forrester data is based on conversations with more than 700 IT applications professionals during the past six months.)

Choice. "Rapid vendor consolidation over the past five years has left apps pros with fewer vendor choices," writes Wang. "Customers seek alternatives that integrate well with existing solutions."

Some of the options CIOs and IT professionals are looking for include: industry-specific solutions, partner add-ons and third-party maintenance services, states the report. Customers want these options to give them more flexibility that incorporate alternative deployment models, such as SaaS, application service providers (ASP) and hosting, and business process outsourcing options.

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Comments

Good one

@Thomas
that is a good write up on the current scenario and depicting the mindset of clients. What clients looking forward is most predictable solution in the least price to avoid any risks.
I think you got the exact pulse of the situation.



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