
By Andy McCue
Published: Friday 16 November 2007
Email story to a Friend | Report Abuse
Name
Steve Hull
Location
York
Occupation
Chief Executive, Sawfish Software
Comment
I can understand buyers wanting more negotiating power, however, as the owner of a software company which delivers SaaS products, I would ask them to have a little respect for business like mine when they strive to reduce the price.
Development costs and labour costs unfortuantely do not decrease and therefore if SaaS prices are driven down, software firms may strugle to survive financially.
If this happens then not only will it be disasterous for the specific companies effected, but the firms that have purchased their software will also be left with an unsupported product, which may cease to function. Obviously this will render their investment completely useless.
All I ask is that when buyers are negotiating on price, they think not just of the initial costs, but also of what value the software will add to their business. With this in mind they should be able to agree a suitable and repectful price.
Agenda Setters 2009
Welcome to the ninth annual Agenda Setters poll – silicon.com's list of the top 50 most influential individuals in the technology and IT industries, from techies and CIOs to entrepreneurs and business leaders. Find out more in our latest special report.
Copyright © 2008 CBS Interactive Limited. All rights reserved. Top of page
The Round-Up The Weekly Round-Up: 03.12.09 'Ere guv, you'll never guess who I had in the back of my cab the other day…'
Stuart Roberts Shared services - how to get it right in your business Recession boosts uptake