Recently the good news in the housing market has propped up the indexes to levels we have not seen since the crash. IT equipment transactions are on the rise from six months ago. This certainly indicates movement!

Some are wondering if this is sustainable. Experts I have talked to said that most customers are still very cautious and that this caution is the only trend that is predictable at this point. We are still in a recession, folks. When people look out into the future, it’s only a year out (not the typical three or four we focused on previously). What does this do the likes of software companies who are scribbling away cost analyses for their companies? Contracts are shorter. Customers are playing hardball or threatening to go cold. Third-party providers are laughing to the bank.

Maintenance contracts are “going dark” more and more in the mid market and experts predict it will be the first time that this trend continues for TWO years. The speculation is that SAP, ORCL and MSFT will have no choice but to give more concessions like free licenses, support, consulting and other perks. SAAS is becoming sexy, to say the least, and now it’s gaining ground in the large enterprise. If any of the big three may benefit, it might be ORCL, because it has the best SAAS offering out there among the three players.

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This entry was posted on Monday, November 30th, 2009 at 3:16 pm and is filed under Author, Laxmi Poruri. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.