How the Subscription Economy will Change Your Business Applications - Forbes | Cloud Central |
The second order effects of both the technology infrastructure of SaaS and the business model, which has become known as the Subscription Economy are changing the requirements for business software in a variety of ways that contain important lessons for CIOs and CTOs.


........The direct relationship between the vendor and the customer means that any problems with configuration directly show up as higher support costs, not as higher revenue for implementation partners. As a result, SaaS vendors have to focus a huge amount of attention on making the software easy to configure and customize. In the on-premise model, channel partners who help sell the software may be hurt by better configurability, which could lead to lower service revenue.