Why there's a software support and maintenance revolution underway

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The software industry has been consolidating by acquisition into a few large vendors. When this occurs, price becomes a matter of watching only a few other companies.

Also, price increases for support show that vendors recognize in-house staff are not an organization's most valued resource, but a cost center to be controlled strictly.

The answer to increasing prices for support of expensive software may be use of less expensive and elaborate software.

After Microsoft's failed attempt to merge with SAP, Mr. Ballmer commented on a de facto partnership, with SAP providing higher end software, Microsoft the equivalent for smaller organizations. Though there has been some movement by large companies toward smaller organizations, the market division has likely held.

Now, though, a large company might consider changing to Microsoft products to save money. The change might be easier because of other Microsoft products in use. The software might do less, but it's possible to review whether effort and expense invested are producing a good return.

A rebellion against prices charged by one large software company is probably most likely to lead to products from another large company. Rather than more in-house responsibilities.

Posted by: Anton Philidor   Posted on: 08/19/08 You are currently: a Guest | Members login | Terms of Use

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