This was originally posted by Susan Penny Brown on interimtechexec.com
Whether to continue to pay for software maintenance contracts for on-premise solutions is a tough question for many, especially as the tough economy of the past few years settles into a new reality. Cost pressures continue, and many companies feel these contracts deliver limited value, especially when plans to upgrade have been put aside.
Software Insider Ray R Wang recently reported that in his survey of 240 CIO’s, a strong majority sited poor service, feature-light releases, and a downright dislike of the vendor as reasons why they’re weighing their options. A full 30% of his respondents have no software maintenance contract and provide their own support.
Almost 60% of CIO’s expressed interest in third-party maintenance providers. Granted, most of these CIO’s represent companies with over 1000 employees and larger vendors like SAP, Oracle, PeopleSoft and the like. But here’s the interesting statistic.... Continue reading