The High Cost of SaaS?

Software as a Service may be the wave of the future. But as a one vendor pointed out, it's renting or leasing software and as we all know, renting or leasing is cheaper than  buying. So before everyone gets enamored with online applications, it's time to remember some basics of  how the leasing business works.

Given how well known that model is, a long-winded discussion here probably isn't necessary. But it generally the lease-versus-buy decision boils down to cash flow and how long someone is going to own the item leased, say a car. Generally, if you are short on cash or  you aren't going to keep the car very long, leasing is a good deal.



This summer's uproar about the meaning of the demise of the large Sage VAR MIS Group needs to be put into context.

For the moment, there's no indication that it means Sage has troubles that are much different than those faced by other vendors. True, Sage has its problems. But there's a lot more at work here than just the relationship of one reseller and one software manufacturer.

There were many comments about the fact that the reseller closed its doors two months after being named Sage's Partner of the Year. That ignores the fact that the award was based on results for Sage's fiscal year ended September 31. It was clear that MIS Group's problems started earlier. But it simply didn't get the award and then go belly up.



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