Reducing Costs With Software As a Service? (SaaS) Just Like Your Cell Phone Bills!

I know that I've referred to Software as a Service (SaaS) as the prelude to a wide variety of onerous licensing tactics--and substantial hikes in technology spending. The most serious problem - and one we should ALL fear - is that a great deal of money is being spent to convince us that SaaS will reduce IT costs.

Answer me this: Since when does ANY software industry player want us to reduce spending on their products? Remember how well Software Advantage worked out (For Microsoft--not for the consumer)?

If you think software costs are out of line with value, here's another concept to consider:

• You're aware of how you get to pay for every minute; every message; and, seemingly, every breath you take on your cell phone, right?
• You know how the cell companies do business, right? How about AT&T long distance?
  
• Now, picture the same model in terms of software...

1. First they arrange to completely OWN the access - you just pay to use it;
2. They initially charge a flat rate per user - Not much, but then again, we want EVERYONE completely addicted as quickly as possible;
3. After you are hooked, and the costs to back out are prohibitive, they begin "adjusting" the rates to include per minute charges; per user charges; bandwidth surcharges; named user accounts; and so on...
   
4. Then they move to additional service fees (as in the banking industry); access fees; data recovery fees; data storage fees; billing fees; license surcharges; Billy's vacation fees; and so on...
   

Eventually, your software bill will read like a cell phone bill on a bus load of invoicing steroids - along with a "screw with us and we cancel your access" attitude. How quickly would your business drown without access to your computer systems? THAT is the question you need to ask - and develop honest answers for - prior to falling into the SaaS quagmire.

Oh...wait! Mr. (or) Ms. Software Billionaire says, "WE would never do that to our customer base." Right...