Companies’ need for flexibility in the way they adopt products and services is constantly increasing, especially when a long-term contract is required. This need is driving change in software contract practice, away from the adoption/maintenance model and towards the new model called SaaS, or Software-as-a-Service. With SaaS, software is treated as a service and paid for according to the customer’s usage.
The growth of this model is strengthened by the tendency to offer solutions in the cloud, where SaaS is part of the same type of solution.
For companies, this new model presents various advantages:
- The number and type of software licenses can be better adjusted to the company’s needs.
- The SaaS model allows easy adaptation as a business fluctuates and evolves.
- Purchased licenses that are no longer used become a problem of the past.
- Software runs on an operating expenses (OPEX) model rather than a capital expenditure (CAPEX) model, so it’s easier to schedule around budgetary periods.