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The on-premise enterprise software sector continues to struggle and vendors that relied are million-dollar deals are floundering. The economy has made companies wary of signing on with vendors that cost them even more later on. At the heart of this is the maintenance agreements that are not only expensive, but time consuming when it comes to upgrades and support. The other big reason is the continued maturity of SaaS that is low-cost, easy to implement, and inexpensive to maintain—the complete opposite of on-premise enterprise software.

Jeff Moad of Managing Automation recently wrote about this on his The Edge Blog. Aptly titled “Where Did All the Software Deals Go?” the post goes to heart of why on-premise software is hard to justify for many companies now. While Jeff does say this explicitly, the recession is just the beginning of a long-lasting shift in how companies view and approach enterprise software. Investing in on-premise software doesn’t make much sense anymore.

Managing Automation “The Edge Blog”
“Where Did All the Big Software Deals Go?”
By Jeff Moad
July 31, 2009
http://blog.managingautomation.com/e...ware-deals-go/

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