Microsoft will let partners get creative with pay-when-you-want SaaS plans

Microsoft partners can now tailor private offers that allow buyers to vary the amount and timing of payments for some SaaS products and services. As explained in a May 5 blog post, private offers mean a customer that agrees to acquire $25 million of Microsoft goodies over two years could pay nothing for two months, then pay $ …

[picturethis]

A road to disaster?

This sounds like a road ending in disaster.

I can envision it now:

Case 1:

A Startup has a lot cash after its 1st round of financing. It thinks it needs MS everywhere, so it licenses it. No cash left to develop product. It goes under. MS has has its money upfront, it doesn't care. Since it's SaaS, it's not considered an asset (similar to renting office space month-to-month).

Case 2:

A long-time existing business thinks it needs MS everywhere, licenses it, draining money away from reserves needed for day-to-day operations or CapEx investment. Business now has MS licenses, but can't afford to pay employees during a downturn business cycle - employees either quit or are Rif'd.

Now if only there were alternatives...

(hint: there are)

I don't see a lot of upside to this (from the end-user's point of view)

If a business has the cash for these "lump sum" payments, why not invest it themselves? Since when is buying anything from MS considered an investment?

[ecofeco]

SaaS needs to die

See title.