Software: It’s a buyers’ market

Many IT departments have taken a big hit during the economic downturn, and your tech guys probably aren’t happy about having to push projects to the back burner. The risk:  Your organization gets behind the technology curve and never quite catches up.

But the news isn’t all bad. Seems that software vendors who’ve felt the pushback from IT managers on a shoestring are changing their pricing to meet the times.

A recent report from Forrester researchers shows that many software companies are adjusting their offerings in the face of customers’ money crunch.

Analysts are saying that software sales have become a “buyers’ market,” especially for new customers who can negotiate the best terms if they get in the door while the economy’s unsettled.

Beyond increased flexibility at the negotiating table, Forrester found that enterprise software vendors have made a variety of policy changes in recent months. Among them:

  • simplified pricing bundles,
  • standardized maintenance and support fees,
  • new premium support offerings, and multiyear payment plans.

The big question: Will these changes stay around as the economy starts to recover? There’s no way of knowing, but one way to protect your company if they don’t is to try to put some price protection clauses into contracts.

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