IDC Believes Cloud Providers Can Learn from Telecom Service Providers That Rating Does Pay

FRAMINGHAM, Mass. – June 4, 2009 – A recent IDC survey of IT and line of business (LOB) professionals shows that more than 60% of respondents believe that now is a good time to negotiate steep discounts for traditional on-premise software.

"In this economy, traditional licensing approaches are under fire, with steep license discounts and maintenance concessions the norm," said Amy Konary, program director, Software Pricing, Licensing, and Delivery. "In order to survive the downturn and position for growth in an eventual recovery, software companies will have to evolve their go-to-market approach, and subscription pricing and SaaS will play a key role."

This IDC survey also showed that organizations are highly interested in software pricing options that help shift spending from capital budgets to operating budgets. Additionally, more than half of C-Level executives surveyed are open to buying software from a small firm with a very short track record, if the price is good and functionality seems at least comparable.

A further discussion of the results of this survey, as well as an update on the growth expectations for SaaS and subscription, will be presented at two upcoming IDC Briefings — Going Hybrid with SaaS – Managing Perpetual and Subscription Businesses In the Same Chassis. These events will highlight the key characteristics that customers are looking for in the pricing of software offerings based on the results of this April 2009 SaaS pricing survey. The East Coast event will be held on June 9, 2009 in Framingham, Mass. and the West Coast event will be held on June 17, 2009 in Burlingame, Calif. For more information contact Melissa Bambauer at

This research was delivered via IDC's Enterprise Panel (IEP). The panel is comprised primarily of U.S. respondents, and consists of both IT and LOB executives.

About IDC

IDC is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. IDC helps IT professionals, business executives, and the investment community make fact-based decisions on technology purchases and business strategy. More than 1,000 IDC analysts provide global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. For more than 45 years, IDC has provided strategic insights to help our clients achieve their key business objectives. IDC is a subsidiary of IDG, the world's leading technology media, research, and events company. You can learn more about IDC by visiting[].