Customer Problems by renting software


Developing applications on a subscription (renting) level, has brought some interesting problems with potential customers and their understanding.  

These potential customers want the same relationships with the software corporations as if purchasing on premise applications or web-based applications by purchasing licensing and maintenance contracts.  They know that the contract is a service based contract, like purchasing services from Time Warner, or cell phone service from Sprint, however the licensing model is demanded as well.  These customers want the software license included with the service contract; however they do not want to pay for it. It amazes me a long with a lot of other corporations going to the next level from BETA to LIVE in the cloud on how the value of these applications going to the cloud has been lost by this customer that think paying $40.00 – $100.00 a month is a lot of money. They forget that they are paying for a service, they have no ownership. I had one consultant that I spoke with at Microsoft compare this to the cost of ownership of a car to renting the car. You will always have those customers that YOU DON"T WANT TO RENT TO.

Maybe its time for a new insurance model for renting software in the cloud. I see a new business model here…..

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